Don't overlook NASDAQ:NXT—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Dec 24, 2024

NEXTRACKER INC-CL A (NASDAQ:NXT) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NASDAQ:NXT showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Deciphering NASDAQ:NXT's Valuation Rating

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:

Based on the Price/Earnings ratio of 9.53, the valuation of NXT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 94.32% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. NXT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.68, which indicates a very decent valuation of NXT.
Based on the Price/Forward Earnings ratio, NXT is valued cheaper than 90.91% of the companies in the same industry.
NXT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
94.32% of the companies in the same industry are more expensive than NXT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 92.05% of the companies listed in the same industry.
NXT has an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

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:

With an excellent Return On Assets value of 17.54%, NXT belongs to the best of the industry, outperforming 98.86% of the companies in the same industry.
NXT has a better Return On Equity (38.36%) than 98.86% of its industry peers.
With an excellent Return On Invested Capital value of 27.99%, NXT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NXT had an Average Return On Invested Capital over the past 3 years of 17.04%. This is significantly above the industry average of 9.38%.
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 97.73% 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 25.56%, NXT belongs to the top of the industry, outperforming 98.86% of the companies in the same industry.
In the last couple of years the Operating Margin of NXT has grown nicely.
NXT has a better Gross Margin (36.13%) than 81.82% 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

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:NXT, the assigned 7 reflects its health status:

With a decent Altman-Z score value of 2.97, NXT is doing good in the industry, outperforming 69.32% 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 95.45% 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 has a better Debt to Equity ratio (0.11) than 61.36% 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 63.64% of the companies in the same industry.
With a decent Quick ratio value of 1.99, NXT is doing good in the industry, outperforming 78.41% of the companies in the same industry.

Evaluating Growth: 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 7 for growth:

NXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1791.80%, which is quite impressive.
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.
Based on estimates for the next years, NXT will show a quite strong growth in Revenue. The Revenue will grow by 10.54% on average per year.
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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.