NASDAQ:NXT appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 11, 2024

Uncover the hidden value in NEXTRACKER INC-CL A (NASDAQ:NXT) as our stock screening tool recommends it as an undervalued choice. NASDAQ:NXT maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Assessing Valuation Metrics for NASDAQ:NXT

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:NXT has received a 8 out of 10:

With a Price/Earnings ratio of 10.51, 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.
NXT is valuated cheaply when we compare the Price/Earnings ratio to 29.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.77, which indicates a very decent valuation of NXT.
Based on the Price/Forward Earnings ratio, NXT is valued cheaply inside the industry as 87.78% of the companies are valued more expensively.
NXT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.90.
Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaply inside the industry as 94.44% 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 92.22% of the companies in the same industry.
NXT has an outstanding profitability rating, which may justify a higher PE ratio.

Understanding NASDAQ:NXT's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NXT was assigned a score of 9 for profitability:

NXT's Return On Assets of 17.54% is amongst the best of the industry. NXT outperforms 97.78% of its industry peers.
The Return On Equity of NXT (38.36%) is better than 97.78% of its industry peers.
NXT's Return On Invested Capital of 27.99% is amongst the best of the industry. NXT outperforms 98.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 10.84%.
The last Return On Invested Capital (27.99%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
NXT has a better Profit Margin (17.33%) than 97.78% of its industry peers.
NXT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.56%, NXT belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
In the last couple of years the Operating Margin of NXT has grown nicely.
The Gross Margin of NXT (36.13%) is better than 83.33% of its industry peers.
In the last couple of years the Gross Margin of NXT has grown nicely.

Deciphering NASDAQ:NXT's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NXT has earned a 8 out of 10:

NXT has an Altman-Z score of 3.19. This indicates that NXT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, NXT is in the better half of the industry, outperforming 71.11% 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.
With an excellent Debt to FCF ratio value of 0.34, NXT belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
NXT has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
NXT's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. NXT outperforms 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.
Looking at the Current ratio, with a value of 2.21, NXT is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.99, NXT is in the better half of the industry, outperforming 71.11% of the companies in the same industry.

Growth Examination for NASDAQ:NXT

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NXT was assigned a score of 8 for growth:

The Earnings Per Share has grown by an impressive 1791.80% over the past year.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 34.43%.
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.
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.

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