NASDAQ:NXT stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Aug 6, 2024

Discover NEXTRACKER INC-CL A (NASDAQ:NXT), an undervalued stock highlighted by our stock screener. NASDAQ:NXT showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Assessment of NASDAQ:NXT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:NXT has earned a 7 for valuation:

With a Price/Earnings ratio of 11.37, the valuation of NXT can be described as very reasonable.
Based on the Price/Earnings ratio, NXT is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NXT to the average of the S&P500 Index (28.44), we can say NXT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.64, the valuation of NXT can be described as reasonable.
Based on the Price/Forward Earnings ratio, NXT is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 19.90. NXT is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 86.96% of the companies listed in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NXT has earned a 9 out of 10:

NXT has a better Return On Assets (12.16%) than 94.57% of its industry peers.
With an excellent Return On Equity value of 31.87%, NXT belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
NXT has a Return On Invested Capital of 27.67%. This is amongst the best in the industry. NXT outperforms 98.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NXT is significantly above the industry average of 11.12%.
The last Return On Invested Capital (27.67%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 12.25%, NXT belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
In the last couple of years the Profit Margin of NXT has grown nicely.
Looking at the Operating Margin, with a value of 23.49%, NXT belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
In the last couple of years the Operating Margin of NXT has grown nicely.
NXT's Gross Margin of 32.52% is fine compared to the rest of the industry. NXT outperforms 75.00% of its industry peers.
NXT's Gross Margin has improved in the last couple of years.

Unpacking NASDAQ:NXT's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:NXT, the assigned 7 reflects its health status:

The Altman-Z score of NXT (2.70) is better than 67.39% of its industry peers.
The Debt to FCF ratio of NXT is 0.34, which is an excellent value as it means it would take NXT, only 0.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NXT (0.34) is better than 96.74% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that NXT is not too dependend on debt financing.
NXT has a Debt to Equity ratio of 0.15. This is in the better half of the industry: NXT outperforms 60.87% of its industry peers.
With a decent Quick ratio value of 1.76, NXT is doing good in the industry, outperforming 66.30% of the companies in the same industry.

Looking at the Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NXT has earned a 8 for growth:

NXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8311.21%, which is quite impressive.
NXT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.42%.
NXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.49% yearly.
NXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.73% yearly.
NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.61% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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For an up to date full fundamental analysis you can check the fundamental report of NXT

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.