Stock Analysis: Affordable Growth

Fundamental Rating

Overall NXT gets a fundamental rating of 8 out of 10. We evaluated NXT against 97 industry peers in the Electrical Equipment industry. NXT gets an excellent profitability rating and is at the same time showing great financial health properties. NXT is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make NXT suitable for value and growth and quality investing!

1. Profitability

1.1 Basic Checks

NXT had positive earnings in the past year.

In the past year NXT had a positive cash flow from operations.

In the past 5 years NXT has always been profitable.

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

1.2 Ratios

Looking at the Return On Assets, with a value of 18.69%, NXT belongs to the top of the industry, outperforming 98.97% of the companies in the same industry.

With an excellent Return On Equity value of 39.64%, NXT belongs to the best of the industry, outperforming 98.97% of the companies in the same industry.

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.

With an excellent Operating Margin value of 25.83%, NXT belongs to the best of the industry, outperforming 98.97% of the companies in the same industry.

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

The Gross Margin of NXT (37.66%) is better than 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

NXT has more shares outstanding than it did 1 year ago.

NXT has less shares outstanding than it did 5 years ago.

NXT has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.12 indicates that NXT is not in any danger for bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 3.12, NXT is in the better half of the industry, outperforming 72.16% of the companies in the same industry.

The Debt to FCF ratio of NXT is 0.29, which is an excellent value as it means it would take NXT, only 0.29 years of fcf income to pay off all of its debts.

The Debt to FCF ratio of NXT (0.29) is better than 94.85% of its industry peers.

A Debt/Equity ratio of 0.10 indicates that NXT is not too dependend on debt financing.

NXT has a better Debt to Equity ratio (0.10) than 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

NXT has a Current Ratio of 2.20. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.

NXT has a better Current ratio (2.20) than 64.95% of its industry peers.

A Quick Ratio of 1.96 indicates that NXT should not have too much problems paying its short term obligations.

Looking at the Quick ratio, with a value of 1.96, NXT is in the better half of the industry, outperforming 76.29% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.2
Quick Ratio	1.96

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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!

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.

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

NXT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.92% yearly.

Based on estimates for the next years, NXT will show a quite strong growth in Revenue. The Revenue will grow by 10.91% on average per year.

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.

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

NXT is valuated reasonably with a Price/Earnings ratio of 9.92.

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.

When comparing the Price/Earnings ratio of NXT to the average of the S&P500 Index (28.29), we can say NXT is valued rather cheaply.

NXT is valuated reasonably with a Price/Forward Earnings ratio of 9.88.

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.

NXT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.

		Industry Rank	Sector Rank
PE	9.92
Fwd PE	9.88

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaply inside the industry as 91.75% of the companies are valued more expensively.

NXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NXT is cheaper than 86.60% of the companies in the same industry.