NASDAQ:NXT is probably undervalued for the fundamentals it is displaying.

Last update: Jan 14, 2025

Take a closer look at NEXTRACKER INC-CL A (NASDAQ:NXT), a remarkable value stock uncovered by our stock screener. NASDAQ:NXT excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Analysis 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 8 reflects its valuation:

The Price/Earnings ratio is 10.69, which indicates a very decent valuation of NXT.
Based on the Price/Earnings ratio, NXT is valued cheaply inside the industry as 93.41% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.10. NXT is valued rather cheaply when compared to this.
NXT is valuated reasonably with a Price/Forward Earnings ratio of 11.98.
NXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NXT is cheaper than 91.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NXT to the average of the S&P500 Index (23.41), we can say NXT is valued slightly cheaper.
NXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NXT is cheaper than 94.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXT is valued cheaper than 87.91% of the companies in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

How do we evaluate the Profitability for NASDAQ:NXT?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NXT, the assigned 9 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 17.54%, NXT belongs to the top of the industry, outperforming 98.90% of the companies in the same industry.
The Return On Equity of NXT (38.36%) is better than 97.80% of its industry peers.
NXT's Return On Invested Capital of 27.99% is amongst the best of the industry. NXT outperforms 98.90% 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 10.46%.
The 3 year average ROIC (17.04%) for NXT is below the current ROIC(27.99%), indicating increased profibility in the last year.
NXT's Profit Margin of 17.33% is amongst the best of the industry. NXT outperforms 97.80% of its industry peers.
In the last couple of years the Profit Margin of NXT has grown nicely.
The Operating Margin of NXT (25.56%) is better than 98.90% of its industry peers.
In the last couple of years the Operating Margin of NXT has grown nicely.
With an excellent Gross Margin value of 36.13%, NXT belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
In the last couple of years the Gross Margin of NXT has grown nicely.

A Closer Look at Health for NASDAQ:NXT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, 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 3.23. This indicates that NXT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NXT (3.23) is better than 70.33% of its industry peers.
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 95.60% 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 62.64% of its industry peers.
NXT has a Current Ratio of 2.21. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
NXT's Current ratio of 2.21 is fine compared to the rest of the industry. NXT outperforms 63.74% of its industry peers.
NXT has a better Quick ratio (1.99) than 79.12% of its industry peers.

Evaluating Growth: NASDAQ:NXT

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 7 out of 10:

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%.
NXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.49% yearly.
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.
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.

Our latest full fundamental report of NXT contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.