NASDAQ:NXT is not too expensive for the growth it is showing.

Last update: Aug 13, 2024

Our stock screener has singled out NEXTRACKER INC-CL A (NASDAQ:NXT) as an attractive growth opportunity. NASDAQ:NXT is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth Metrics for NASDAQ:NXT

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NXT has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 8311.21% over the past year.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 31.42%.
Measured over the past years, NXT shows a very strong growth in Revenue. The Revenue has been growing by 30.49% on average per year.
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.
Based on estimates for the next years, NXT will show a quite strong growth in Revenue. The Revenue will grow by 10.61% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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:

A Price/Earnings ratio of 11.14 indicates a reasonable valuation of NXT.
Based on the Price/Earnings ratio, NXT is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
NXT is valuated cheaply when we compare the Price/Earnings ratio to 28.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of NXT can be described as reasonable.
NXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NXT is cheaper than 86.96% of the companies in the same industry.
NXT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.27.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 89.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NXT is valued cheaper than 86.96% of the companies in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

Assessing Health Metrics for NASDAQ:NXT

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NXT was assigned a score of 7 for health:

With a decent Altman-Z score value of 2.65, NXT is doing good in the industry, outperforming 68.48% of the companies in the same industry.
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.
NXT's Debt to FCF ratio of 0.34 is amongst the best of the industry. NXT outperforms 96.74% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that NXT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, NXT is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.76, NXT is in the better half of the industry, outperforming 67.39% of the companies in the same industry.

Assessing Profitability for NASDAQ:NXT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NXT, the assigned 9 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 12.16%, NXT belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
NXT's Return On Equity of 31.87% is amongst the best of the industry. NXT outperforms 96.74% of its industry peers.
NXT's Return On Invested Capital of 27.67% is amongst the best of the industry. NXT outperforms 97.83% 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 11.18%.
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.
Looking at the Profit Margin, with a value of 12.25%, NXT belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Profit Margin of NXT has grown nicely.
NXT has a better Operating Margin (23.49%) than 97.83% of its industry peers.
In the last couple of years the Operating Margin of NXT has grown nicely.
NXT has a better Gross Margin (32.52%) than 76.09% of its industry peers.
In the last couple of years the Gross Margin of NXT has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.