Investors should take notice of NASDAQ:NXT—it offers a great deal for the fundamentals it presents.

Last update: Dec 2, 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.

A Closer Look at Valuation for 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 8 out of 10:

NXT is valuated reasonably with a Price/Earnings ratio of 9.99.
NXT's Price/Earnings ratio is rather cheap when compared to the industry. NXT is cheaper than 95.40% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.78, NXT is valued rather cheaply.
NXT is valuated reasonably with a Price/Forward Earnings ratio of 11.20.
Based on the Price/Forward Earnings ratio, NXT is valued cheaper than 91.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.23, NXT is valued rather cheaply.
94.25% of the companies in the same industry are more expensive than NXT, based on the Enterprise Value to EBITDA ratio.
NXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXT is cheaper than 91.95% of the companies in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

A Closer Look at Profitability 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 has a Return On Assets of 17.54%. This is amongst the best in the industry. NXT outperforms 98.85% of its industry peers.
NXT has a better Return On Equity (38.36%) than 98.85% of its industry peers.
NXT has a Return On Invested Capital of 27.99%. This is amongst the best in the industry. NXT outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 9.38%.
The 3 year average ROIC (17.04%) for NXT is below the current ROIC(27.99%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 17.33%, NXT belongs to the best of the industry, outperforming 97.70% of the companies in the same industry.
In the last couple of years the Profit Margin of NXT has grown nicely.
NXT's Operating Margin of 25.56% is amongst the best of the industry. NXT outperforms 98.85% of its industry peers.
NXT's Operating Margin has improved in the last couple of years.
NXT has a better Gross Margin (36.13%) than 81.61% of its industry peers.
NXT's Gross Margin has improved in the last couple of years.

What does the Health looks like 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 8 out of 10:

An Altman-Z score of 3.08 indicates that NXT is not in any danger for bankruptcy at the moment.
NXT's Altman-Z score of 3.08 is fine compared to the rest of the industry. NXT outperforms 67.82% of its industry peers.
NXT has a debt to FCF ratio of 0.34. This is a very positive value and a sign of high solvency as it would only need 0.34 years to pay back of all of its debts.
NXT has a better Debt to FCF ratio (0.34) than 95.40% of its industry peers.
NXT has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.11, NXT is doing good in the industry, outperforming 62.07% of the companies in the same industry.
A Current Ratio of 2.21 indicates that NXT has no problem at all paying its short term obligations.
NXT has a Current ratio of 2.21. This is in the better half of the industry: NXT outperforms 63.22% of its industry peers.
Looking at the Quick ratio, with a value of 1.99, NXT is in the better half of the industry, outperforming 78.16% of the companies in the same industry.

Growth Analysis for NASDAQ:NXT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:NXT has achieved a 8 out of 10:

The Earnings Per Share has grown by an impressive 1791.80% over the past year.
The Revenue has grown by 34.43% in the past year. This is a very strong growth!
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.

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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.