In a market where value is scarce, NASDAQ:NXT offers a refreshing opportunity with its solid fundamentals.

Last update: Aug 29, 2024

Our stock screening tool has pinpointed NEXTRACKER INC-CL A (NASDAQ:NXT) as an undervalued stock. NASDAQ:NXT maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Valuation Insights: NASDAQ:NXT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:NXT scores a 7 out of 10:

A Price/Earnings ratio of 11.50 indicates a reasonable valuation of NXT.
Based on the Price/Earnings ratio, NXT is valued cheaper than 87.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of NXT to the average of the S&P500 Index (30.00), we can say NXT is valued rather cheaply.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent valuation of NXT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 86.67% of the companies listed in the same industry.
NXT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.62.
NXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NXT is cheaper than 91.11% of the companies in the same industry.
84.44% of the companies in the same industry are more expensive than NXT, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of NXT may justify a higher PE ratio.

Profitability Analysis for NASDAQ:NXT

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NXT scores a 9 out of 10:

NXT has a better Return On Assets (15.51%) than 96.67% of its industry peers.
The Return On Equity of NXT (36.34%) is better than 97.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.37%, NXT belongs to the top of the industry, outperforming 98.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 10.97%.
The last Return On Invested Capital (28.37%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 14.87%, NXT belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Profit Margin of NXT has grown nicely.
With an excellent Operating Margin value of 24.63%, NXT belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
NXT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.19%, NXT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of NXT has grown nicely.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NXT has achieved a 7 out of 10:

An Altman-Z score of 3.06 indicates that NXT is not in any danger for bankruptcy at the moment.
NXT's Altman-Z score of 3.06 is fine compared to the rest of the industry. NXT outperforms 66.67% of its industry peers.
The Debt to FCF ratio of NXT is 0.47, which is an excellent value as it means it would take NXT, only 0.47 years of fcf income to pay off all of its debts.
NXT has a Debt to FCF ratio of 0.47. This is amongst the best in the industry. NXT outperforms 94.44% of its industry peers.
NXT has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 2.11 indicates that NXT has no problem at all paying its short term obligations.
NXT has a Quick ratio of 1.91. This is in the better half of the industry: NXT outperforms 71.11% of its industry peers.

Growth Examination for NASDAQ:NXT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NXT boasts a 8 out of 10:

NXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1129.14%, which is quite impressive.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 38.50%.
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.
The Earnings Per Share is expected to grow by 8.73% on average over the next years. This is quite good.
NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.61% yearly.
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.

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Our latest full fundamental report of NXT contains the most current fundamental analsysis.

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.