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

Last update: Nov 5, 2024

NEXTRACKER INC-CL A (NASDAQ:NXT) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:NXT is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Insights: 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:

The Earnings Per Share has grown by an impressive 1778.41% over the past year.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 34.43%.
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.
The Revenue is expected to grow by 10.61% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Examination for 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 7 reflects its valuation:

With a Price/Earnings ratio of 10.98, the valuation of NXT can be described as very reasonable.
Based on the Price/Earnings ratio, NXT is valued cheaper than 91.11% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.20. NXT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio, NXT is valued cheaper than 85.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NXT to the average of the S&P500 Index (23.28), we can say NXT is valued slightly cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 93.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NXT is valued cheaply inside the industry as 87.78% of the companies are valued more expensively.
NXT has an outstanding profitability rating, which may justify a higher PE ratio.

Evaluating Health: 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:

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 96.67% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that NXT is not too dependend on debt financing.
The Debt to Equity ratio of NXT (0.11) is better than 63.33% of its industry peers.
A Current Ratio of 2.21 indicates that NXT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.21, NXT is doing good in the industry, outperforming 61.11% of the companies in the same industry.
NXT's Quick ratio of 1.99 is fine compared to the rest of the industry. NXT outperforms 70.00% of its industry peers.

Profitability Examination for NASDAQ:NXT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NXT has achieved a 9:

NXT's Return On Assets of 17.47% is amongst the best of the industry. NXT outperforms 97.78% of its industry peers.
NXT has a better Return On Equity (37.72%) than 97.78% of its industry peers.
With an excellent Return On Invested Capital value of 27.91%, NXT belongs to the best of the industry, outperforming 98.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NXT is significantly above the industry average of 10.91%.
The 3 year average ROIC (17.04%) for NXT is below the current ROIC(27.91%), indicating increased profibility in the last year.
NXT has a better Profit Margin (17.26%) than 97.78% of its industry peers.
In the last couple of years the Profit Margin of NXT has grown nicely.
Looking at the Operating Margin, with a value of 25.48%, NXT belongs to the top 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.
With an excellent Gross Margin value of 36.13%, NXT belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
In the last couple of years the Gross Margin of NXT has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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.