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

Last update: Sep 20, 2024

NEXTRACKER INC-CL A (NASDAQ:NXT) was identified as a decent value stock by our stock screener. NASDAQ:NXT scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Valuation Assessment of NASDAQ:NXT

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:NXT, the assigned 8 reflects its valuation:

NXT is valuated reasonably with a Price/Earnings ratio of 10.42.
Compared to the rest of the industry, the Price/Earnings ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 88.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 30.79. NXT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable 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 88.89% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.21. NXT is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
NXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXT is cheaper than 85.56% of the companies in the same industry.
NXT has an outstanding profitability rating, which may justify a higher PE ratio.

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:

With an excellent Return On Assets value of 15.51%, NXT belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
NXT has a Return On Equity of 36.34%. This is amongst the best in the industry. NXT outperforms 97.78% of its industry peers.
NXT has a Return On Invested Capital of 28.37%. This is amongst the best in the industry. NXT outperforms 98.89% 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 10.93%.
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.
NXT has a Profit Margin of 14.87%. This is amongst the best in the industry. NXT outperforms 94.44% of its industry peers.
NXT's Profit Margin has improved in the last couple of years.
The Operating Margin of NXT (24.63%) is better than 97.78% of its industry peers.
In the last couple of years the Operating Margin of NXT has grown nicely.
NXT has a Gross Margin of 34.19%. This is in the better half of the industry: NXT outperforms 80.00% of its industry peers.
NXT's Gross Margin has improved in the last couple of years.

Health Examination for NASDAQ:NXT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NXT has received a 7 out of 10:

NXT has a better Altman-Z score (2.84) than 67.78% 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.
Looking at the Debt to FCF ratio, with a value of 0.47, NXT belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
NXT has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
NXT has a Debt to Equity ratio of 0.13. This is in the better half of the industry: NXT outperforms 61.11% of its industry peers.
NXT has a Current Ratio of 2.11. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
NXT has a Quick ratio of 1.91. This is in the better half of the industry: NXT outperforms 70.00% of its industry peers.

Understanding NASDAQ:NXT's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NXT scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 1129.14% over the past year.
NXT shows a strong growth in Revenue. In the last year, 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.
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.
The Revenue is expected to grow by 10.61% on average over the next years. This is quite good.
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.

More Decent Value stocks can be found in our Decent Value screener.

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.