NASDAQ:NXT is showing good growth, while it is not too expensive.

Last update: Jan 30, 2025

Take a closer look at NEXTRACKER INC-CL A (NASDAQ:NXT), an affordable growth stock uncovered by our stock screener. NASDAQ:NXT boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Understanding NASDAQ:NXT's Growth Score

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:

The Earnings Per Share has grown by an impressive 57.49% over the past year.
NXT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.42%.
The Revenue has been growing by 30.49% on average over the past years. This is a very strong growth!
The Revenue is expected to grow by 10.99% on average over the next years. This is quite good.
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.

Deciphering NASDAQ:NXT's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:NXT has earned a 7 for valuation:

89.01% of the companies in the same industry are more expensive than NXT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. NXT is valued rather cheaply when compared to this.
85.71% of the companies in the same industry are more expensive than NXT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, NXT is valued rather cheaply.
NXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NXT is cheaper than 91.21% of the companies in the same industry.
NXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXT is cheaper than 85.71% of the companies in the same industry.
The excellent profitability rating of NXT may justify a higher PE ratio.

Assessing 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 3.72. This indicates that NXT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NXT (3.72) is better than 74.73% 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.
With an excellent Debt to FCF ratio value of 0.34, NXT belongs to the best of the industry, outperforming 94.51% 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.
Looking at the Debt to Equity ratio, with a value of 0.11, NXT is in the better half of the industry, outperforming 62.64% of the companies in the same industry.
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 has a Current ratio of 2.21. This is in the better half of the industry: NXT outperforms 63.74% of its industry peers.
With a decent Quick ratio value of 1.99, NXT is doing good in the industry, outperforming 79.12% of the companies in the same industry.

Profitability Examination for NASDAQ:NXT

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 98.90% of its industry peers.
Looking at the Return On Equity, with a value of 38.36%, NXT belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 27.99%, NXT belongs to the top of the industry, outperforming 98.90% 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 10.24%.
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.
With an excellent Profit Margin value of 17.33%, NXT belongs to the best of the industry, outperforming 97.80% of the companies in the same industry.
NXT's Profit Margin has improved in the last couple of years.
NXT's Operating Margin of 25.56% is amongst the best of the industry. NXT outperforms 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.
NXT's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

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.