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When you look at NASDAQ:NXT, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

By Mill Chart

Last update: May 16, 2024

Discover NEXTRACKER INC-CL A (NASDAQ:NXT)—an undervalued stock our stock screener has picked out. NASDAQ:NXT demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

A Closer Look at Valuation for NASDAQ:NXT

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:NXT scores a 8 out of 10:

  • Based on the Price/Earnings ratio, NXT is valued cheaper than 82.14% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.91. NXT is valued slightly cheaper when compared to this.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 88.10% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 20.51, NXT is valued a bit cheaper.
  • Based on the Enterprise Value to EBITDA ratio, NXT is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
  • 85.71% of the companies in the same industry are more expensive than NXT, based on the Price/Free Cash Flow ratio.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • NXT has a very decent profitability rating, which may justify a higher PE ratio.
  • NXT's earnings are expected to grow with 54.47% in the coming years. This may justify a more expensive valuation.

Profitability Insights: NASDAQ:NXT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NXT was assigned a score of 6 for profitability:

  • Looking at the Return On Assets, with a value of 0.40%, NXT is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
  • NXT has a better Return On Invested Capital (20.04%) than 97.62% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 9.59%.
  • The last Return On Invested Capital (20.04%) for NXT is above the 3 year average (15.74%), which is a sign of increasing profitability.
  • With a decent Profit Margin value of 0.37%, NXT is doing good in the industry, outperforming 67.86% of the companies in the same industry.
  • NXT has a better Operating Margin (15.65%) than 89.29% of its industry peers.

A Closer Look at Health for NASDAQ:NXT

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NXT has earned a 5 out of 10:

  • The Debt to FCF ratio of NXT is 0.42, which is an excellent value as it means it would take NXT, only 0.42 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.42, NXT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.

What does the Growth looks like for NASDAQ:NXT

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:NXT has achieved a 6 out of 10:

  • Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 25.12%.
  • NXT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.54% yearly.
  • The Earnings Per Share is expected to grow by 35.44% on average over the next years. This is a very strong growth
  • NXT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.80% yearly.
  • 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of NXT contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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NEXTRACKER INC-CL A

NASDAQ:NXT (5/24/2024, 7:00:02 PM)

After market: 56.9 +0.13 (+0.23%)

56.77

+5.45 (+10.62%)

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News Image12 days ago - ChartmillWhen you look at NASDAQ:NXT, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Despite its impressive fundamentals, NEXTRACKER INC-CL A (NASDAQ:NXT) remains undervalued.

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