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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NXT is not overvalued while it is showing excellent growth. This is an interesting 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.
In the past 5 years NXT has always 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 15.70%. This is amongst the best in the industry. NXT outperforms 95.60% of its industry peers.
NXT has a Return On Equity of 29.01%. This is amongst the best in the industry. NXT outperforms 96.70% of its industry peers.
The Return On Invested Capital of NXT (23.73%) is better than 97.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 9.92%.
The 3 year average ROIC (22.64%) for NXT is below the current ROIC(23.73%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	15.7%
ROE	29.01%
ROIC	23.73%

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 17.08%. This is amongst the best in the industry. NXT outperforms 93.41% of its industry peers.
NXT's Profit Margin has improved in the last couple of years.
NXT's Operating Margin of 22.21% 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.
NXT's Gross Margin of 34.20% is fine compared to the rest of the industry. NXT outperforms 76.92% of its industry peers.
NXT's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	22.21%
PM (TTM)	17.08%
GM	34.2%

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.
The number of shares outstanding for NXT has been increased compared to 5 years ago.
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

An Altman-Z score of 6.77 indicates that NXT is not in any danger for bankruptcy at the moment.
NXT's Altman-Z score of 6.77 is amongst the best of the industry. NXT outperforms 85.71% of its industry peers.
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	6.77

ROIC/WACC2.68

WACC8.84%

2.3 Liquidity

NXT has a Current Ratio of 2.18. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NXT (2.18) is better than 64.84% of its industry peers.
NXT has a Quick Ratio of 1.98. This is a normal value and indicates that NXT is financially healthy and should not expect problems in meeting its short term obligations.
NXT has a better Quick ratio (1.98) than 76.92% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.18
Quick Ratio	1.98

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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 quite strong growth in Revenue. The Revenue has grown by 18.38% in the last year.
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)18.38%

Revenue growth 3Y26.62%

Revenue growth 5Y20.37%

Sales Q2Q%33.85%

3.2 Future

NXT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.42% yearly.
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

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.
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 quite expensively with a Price/Earnings ratio of 25.31.
Based on the Price/Earnings ratio, NXT is valued cheaper than 84.62% of the companies in the same industry.
NXT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
A Price/Forward Earnings ratio of 25.58 indicates a quite expensive valuation of NXT.
NXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NXT is cheaper than 80.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, NXT is valued at the same level.

		Industry Rank	Sector Rank
PE	25.31
Fwd PE	25.58

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaply inside the industry as 80.22% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NXT is valued cheaper than 86.81% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	29.49
EV/EBITDA	19.26

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NXT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NXT may justify a higher PE ratio.