Stock Analysis: Affordable Growth

Fundamental Rating

We assign a fundamental rating of 8 out of 10 to NXT. NXT was compared to 97 industry peers in the Electrical Equipment industry. NXT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: NXT is growing strongly while it also seems undervalued. These ratings could make NXT a good candidate for value and growth and quality investing.

1. Profitability

1.1 Basic Checks

NXT had positive earnings in the past year.

NXT had a positive operating cash flow in the past year.

NXT had positive earnings in each of the past 5 years.

NXT had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

NXT has a Return On Assets of 18.69%. This is amongst the best in the industry. NXT outperforms 98.97% of its industry peers.

NXT has a Return On Equity of 39.64%. This is amongst the best in the industry. NXT outperforms 98.97% of its industry peers.

NXT has a Return On Invested Capital of 26.41%. This is amongst the best in the industry. NXT outperforms 97.94% of its industry peers.

NXT had an Average Return On Invested Capital over the past 3 years of 17.04%. This is significantly above the industry average of 9.56%.

The 3 year average ROIC (17.04%) for NXT is below the current ROIC(26.41%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	18.69%
ROE	39.64%
ROIC	26.41%

ROA(3y)5.75%

ROA(5y)10.09%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)17.04%

ROIC(5y)24.1%

1.3 Margins

With an excellent Profit Margin value of 20.12%, NXT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

NXT's Profit Margin has improved in the last couple of years.

Looking at the Operating Margin, with a value of 25.83%, NXT belongs to the top of the industry, outperforming 98.97% of the companies in the same industry.

In the last couple of years the Operating Margin of NXT has grown nicely.

NXT's Gross Margin of 37.66% is amongst the best of the industry. NXT outperforms 85.57% of its industry peers.

NXT's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	25.83%
PM (TTM)	20.12%
GM	37.66%

OM growth 3Y20.99%

OM growth 5Y165.92%

PM growth 3Y5.61%

PM growth 5YN/A

GM growth 3Y18.79%

GM growth 5Y30.61%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

NXT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.

The number of shares outstanding for NXT has been increased compared to 1 year ago.

Compared to 5 years ago, NXT has less shares outstanding

The debt/assets ratio for NXT has been reduced compared to a year ago.

2.2 Solvency

NXT has an Altman-Z score of 3.12. This indicates that NXT is financially healthy and has little risk of bankruptcy at the moment.

The Altman-Z score of NXT (3.12) is better than 72.16% of its industry peers.

NXT has a debt to FCF ratio of 0.29. This is a very positive value and a sign of high solvency as it would only need 0.29 years to pay back of all of its debts.

NXT's Debt to FCF ratio of 0.29 is amongst the best of the industry. NXT outperforms 94.85% of its industry peers.

NXT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.

NXT's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. NXT outperforms 68.04% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.1
Debt/FCF	0.29
Altman-Z	3.12

ROIC/WACC2.98

WACC8.85%

2.3 Liquidity

A Current Ratio of 2.20 indicates that NXT has no problem at all paying its short term obligations.

With a decent Current ratio value of 2.20, NXT is doing good in the industry, outperforming 64.95% of the companies in the same industry.

NXT has a Quick Ratio of 1.96. This is a normal value and indicates that NXT is financially healthy and should not expect problems in meeting its short term obligations.

The Quick ratio of NXT (1.96) is better than 76.29% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.2
Quick Ratio	1.96

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

NXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.49%, which is quite impressive.

Measured over the past years, NXT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.33% on average per year.

The Revenue has grown by 21.46% in the past year. This is a very strong growth!

The Revenue has been growing by 30.49% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)57.49%

EPS 3Y-11.33%

EPS 5YN/A

EPS Q2Q%7.29%

Revenue 1Y (TTM)21.46%

Revenue growth 3Y27.87%

Revenue growth 5Y30.49%

Sales Q2Q%-4.37%

3.2 Future

Based on estimates for the next years, NXT will show a small growth in Earnings Per Share. The EPS will grow by 7.92% on average per year.

The Revenue is expected to grow by 10.91% on average over the next years. This is quite good.

EPS Next Y27.72%

EPS Next 2Y13.18%

EPS Next 3Y10.57%

EPS Next 5Y7.92%

Revenue Next Year16.53%

Revenue Next 2Y13.8%

Revenue Next 3Y11.84%

Revenue Next 5Y10.91%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.10, which indicates a very decent valuation of NXT.

NXT's Price/Earnings ratio is rather cheap when compared to the industry. NXT is cheaper than 88.66% of the companies in the same industry.

NXT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.

NXT is valuated reasonably with a Price/Forward Earnings ratio of 10.05.

NXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NXT is cheaper than 88.66% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 20.85. NXT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	10.1
Fwd PE	10.05

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaper than 91.75% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, NXT is valued cheaply inside the industry as 86.60% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	11.36
EV/EBITDA	7.33

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

NXT has an outstanding profitability rating, which may justify a higher PE ratio.

PEG (NY)0.36

PEG (5Y)N/A

EPS Next 2Y13.18%

EPS Next 3Y10.57%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

NXT does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

Nasdaq / Industrials / Electrical Equipment

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens