Taking everything into account, NXT scores 7 out of 10 in our fundamental rating. NXT was compared to 91 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. NXT is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, NXT could be worth investigating further for growth and quality investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year NXT was profitable.
In the past year NXT had a positive cash flow from operations.
Each year in the past 5 years NXT has been profitable.
NXT had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

NXT has a Return On Assets of 15.58%. This is amongst the best in the industry. NXT outperforms 95.60% of its industry peers.
With an excellent Return On Equity value of 27.53%, NXT belongs to the best of the industry, outperforming 94.51% of the companies in the same industry.
NXT has a Return On Invested Capital of 23.04%. This is amongst the best in the industry. NXT outperforms 97.80% of its industry peers.
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 last Return On Invested Capital (23.04%) for NXT is above the 3 year average (22.64%), which is a sign of increasing profitability.

		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

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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NXT 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 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

NXT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

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

ROIC/WACC2.6

WACC8.86%

2.3 Liquidity

A Current Ratio of 2.36 indicates that NXT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.36, NXT is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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.
With a decent Quick ratio value of 2.11, NXT is doing good in the industry, outperforming 79.12% of the companies in the same industry.

		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.
NXT shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.02%.
Measured over the past years, NXT shows a very strong growth in Revenue. The Revenue has been growing by 20.37% on average per year.

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

Based on estimates for the next years, NXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.42% on average per year.
The Revenue is expected to grow by 13.43% on average over the next years. This is quite good.

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

The EPS growth rate is decreasing: in the next years the growth will be less 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

A Price/Earnings ratio of 24.70 indicates a rather expensive valuation of NXT.
82.42% of the companies in the same industry are more expensive than NXT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NXT to the average of the S&P500 Index (28.30), we can say NXT is valued inline with the index average.
NXT is valuated rather expensively with a Price/Forward Earnings ratio of 24.96.
NXT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NXT is cheaper than 76.92% of the companies in the same industry.
NXT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	24.7
Fwd PE	24.96

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NXT is valued a bit cheaper than the industry average as 79.12% 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 81.32% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	29.59
EV/EBITDA	21.22

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.