NXT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 91 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 is still valued neutral. This is a good combination! This makes NXT very considerable for growth and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NXT was profitable.
NXT had a positive operating cash flow in the past year.
NXT had positive earnings in each of the past 5 years.
Of the past 5 years NXT 4 years had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 15.58%, NXT belongs to the best of the industry, outperforming 95.60% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.53%, NXT belongs to the top of the industry, outperforming 94.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 23.04%, NXT belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
NXT had an Average Return On Invested Capital over the past 3 years of 22.64%. This is significantly above the industry average of 9.88%.
The 3 year average ROIC (22.64%) for NXT is below the current ROIC(23.04%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	15.58%
ROE	27.53%
ROIC	23.04%

ROA(3y)9.4%

ROA(5y)9.46%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)22.64%

ROIC(5y)20.77%

1.3 Margins

With an excellent Profit Margin value of 16.43%, NXT belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Profit Margin of NXT has grown nicely.
The Operating Margin of NXT (21.51%) is better than 98.90% of its industry peers.
NXT's Operating Margin has improved in the last couple of years.
The Gross Margin of NXT (33.33%) is better than 76.92% of its industry peers.
In the last couple of years the Gross Margin of NXT has grown nicely.

		Industry Rank	Sector Rank
OM	21.51%
PM (TTM)	16.43%
GM	33.33%

OM growth 3Y68.41%

OM growth 5Y11.18%

PM growth 3Y70.15%

PM growth 5Y11.25%

GM growth 3Y50.07%

GM growth 5Y13.4%

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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.
Compared to 5 years ago, NXT has more shares outstanding
There is no outstanding debt for NXT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

There is no outstanding debt for NXT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	N/A

ROIC/WACC2.59

WACC8.88%

2.3 Liquidity

A Current Ratio of 2.36 indicates that NXT has no problem at all paying its short term obligations.
NXT's Current ratio of 2.36 is fine compared to the rest of the industry. NXT outperforms 69.23% of its industry peers.
NXT has a Quick Ratio of 2.11. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NXT (2.11) is better than 79.12% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.36
Quick Ratio	2.11

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.85% over the past year.
Measured over the past years, NXT shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.95% on average per year.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 30.02%.
NXT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.37% yearly.

EPS 1Y (TTM)21.85%

EPS 3Y41.03%

EPS 5Y32.95%

EPS Q2Q%6.8%

Revenue 1Y (TTM)30.02%

Revenue growth 3Y26.62%

Revenue growth 5Y20.37%

Sales Q2Q%33.85%

3.2 Future

The Earnings Per Share is expected to grow by 9.42% on average over the next years. This is quite good.
NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.43% yearly.

EPS Next Y1.56%

EPS Next 2Y5.43%

EPS Next 3Y8.66%

EPS Next 5Y9.42%

Revenue Next Year20.26%

Revenue Next 2Y15.71%

Revenue Next 3Y14.72%

Revenue Next 5Y13.43%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.70, NXT is valued on the expensive side.
Based on the Price/Earnings ratio, NXT is valued cheaper than 82.42% of the companies in the same industry.
NXT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.96, which indicates a rather expensive current valuation of NXT.
Based on the Price/Forward Earnings ratio, NXT is valued a bit cheaper than 76.92% of the companies in the same industry.
NXT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	24.7
Fwd PE	24.96

4.2 Price Multiples

NXT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXT is cheaper than 79.12% 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 82.42% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	29.59
EV/EBITDA	20.48

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NXT has an outstanding profitability rating, which may justify a higher PE ratio.