NEXTRACKER INC-CL A (NXT) Stock Fundamental Analysis
NASDAQ:NXT - Nasdaq - US65290E1010 - Common Stock - Currency: USD
Taking everything into account, NXT scores 8 out of 10 in our fundamental rating. NXT was compared to 92 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 evaluated to be cheap and growing strongly. This does not happen too often! 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.
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
NXT has a better Return On Assets (18.69%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 39.64%, NXT belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
NXT's Return On Invested Capital of 26.41% is amongst the best of the industry. NXT outperforms 97.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NXT is significantly above the industry average of 9.89%.
The last Return On Invested Capital (26.41%) for NXT is above the 3 year average (17.04%), which is a sign of increasing profitability.
| 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
NXT has a Profit Margin of 20.12%. This is amongst the best in the industry. NXT outperforms 98.91% of its industry peers.
In the last couple of years the Profit Margin of NXT has grown nicely.
NXT has a Operating Margin of 25.83%. This is amongst the best in the industry. NXT outperforms 98.91% of its industry peers.
NXT's Operating Margin has improved in the last couple of years.
NXT has a Gross Margin of 37.66%. This is amongst the best in the industry. NXT outperforms 85.87% 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%
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.
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 3.19 indicates that NXT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.19, NXT is doing good in the industry, outperforming 76.09% of the companies in the same industry.
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 94.57% 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 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.29 | ||
| Altman-Z | 3.19 |
ROIC/WACC2.99
WACC8.84%
2.3 Liquidity
A Current Ratio of 2.20 indicates that NXT has no problem at all paying its short term obligations.
NXT has a Current ratio of 2.20. This is in the better half of the industry: NXT outperforms 64.13% 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 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.96 |
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.
NXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.33% yearly.
Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 21.46%.
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 5.78% on average per year.
NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.99% yearly.
EPS Next Y27.41%
EPS Next 2Y13.01%
EPS Next 3Y9.95%
EPS Next 5Y5.78%
Revenue Next Year16.41%
Revenue Next 2Y13.84%
Revenue Next 3Y11.84%
Revenue Next 5Y10.99%
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 accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.68, the valuation of NXT can be described as very reasonable.
Based on the Price/Earnings ratio, NXT is valued cheaply inside the industry as 90.22% of the companies are valued more expensively.
NXT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 10.67, the valuation of NXT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 88.04% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NXT to the average of the S&P500 Index (22.10), we can say NXT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
NXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NXT is cheaper than 93.48% of the companies in the same industry.
91.30% of the companies in the same industry are more expensive than NXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.02 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
NXT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NXT may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y13.01%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
NXT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.56
-0.53 (-1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners108.27%
Inst Owner Change5.69%
Ins Owners0.35%
Ins Owner Change-1.85%
Market Cap6.05B
Analysts80.63
Price Target55.97 (34.67%)
Short Float %7.25%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.18%
Min EPS beat(2)58.71%
Max EPS beat(2)71.65%
EPS beat(4)4
Avg EPS beat(4)48.68%
Min EPS beat(4)21.79%
Max EPS beat(4)71.65%
EPS beat(8)8
Avg EPS beat(8)56.67%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.81%
Min Revenue beat(2)2.25%
Max Revenue beat(2)3.37%
Revenue beat(4)4
Avg Revenue beat(4)7%
Min Revenue beat(4)2.25%
Max Revenue beat(4)15.43%
Revenue beat(8)7
Avg Revenue beat(8)5.95%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.81%
PT rev (3m)0.71%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)18.75%
EPS NY rev (1m)17.66%
EPS NY rev (3m)17.85%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 10.67 | ||
| P/S | 2.18 | ||
| P/FCF | 12.02 | ||
| P/OCF | 11.42 | ||
| P/B | 4.3 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)3.89
EY9.36%
EPS(NY)3.9
Fwd EY9.37%
FCF(TTM)3.46
FCFY8.32%
OCF(TTM)3.64
OCFY8.76%
SpS19.03
BVpS9.66
TBVpS6.79
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.69% | ||
| ROE | 39.64% | ||
| ROCE | 34.44% | ||
| ROIC | 26.41% | ||
| ROICexc | 39.63% | ||
| ROICexgc | 56.76% | ||
| OM | 25.83% | ||
| PM (TTM) | 20.12% | ||
| GM | 37.66% | ||
| FCFM | 18.16% |
ROA(3y)5.75%
ROA(5y)10.09%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.04%
ROIC(5y)24.1%
ROICexc(3y)21.79%
ROICexc(5y)30.22%
ROICexgc(3y)32.1%
ROICexgc(5y)N/A
ROCE(3y)22.22%
ROCE(5y)31.43%
ROICexcg growth 3Y-54.28%
ROICexcg growth 5Y101.15%
ROICexc growth 3Y-1.34%
ROICexc growth 5Y175.47%
OM growth 3Y20.99%
OM growth 5Y165.92%
PM growth 3Y5.61%
PM growth 5YN/A
GM growth 3Y18.79%
GM growth 5Y30.61%
F-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.29 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 279.83% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.05% | ||
| Profit Quality | 90.27% | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 3.19 |
F-Score6
WACC8.84%
ROIC/WACC2.99
Cap/Depr(3y)91.51%
Cap/Depr(5y)60.28%
Cap/Sales(3y)0.28%
Cap/Sales(5y)0.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)57.49%
EPS 3Y-11.33%
EPS 5YN/A
EPS Q2Q%7.29%
EPS Next Y27.41%
EPS Next 2Y13.01%
EPS Next 3Y9.95%
EPS Next 5Y5.78%
Revenue 1Y (TTM)21.46%
Revenue growth 3Y27.87%
Revenue growth 5Y30.49%
Sales Q2Q%-4.37%
Revenue Next Year16.41%
Revenue Next 2Y13.84%
Revenue Next 3Y11.84%
Revenue Next 5Y10.99%
EBIT growth 1Y100.53%
EBIT growth 3Y54.72%
EBIT growth 5Y247%
EBIT Next Year44.91%
EBIT Next 3Y16.9%
EBIT Next 5Y10.31%
FCF growth 1Y1725.96%
FCF growth 3Y66.61%
FCF growth 5YN/A
OCF growth 1Y1608.94%
OCF growth 3Y65.71%
OCF growth 5YN/A