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

Discover NEXTRACKER INC-CL A (NASDAQ:NXT), an undervalued stock highlighted by our stock screener. NXT showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Evaluating Valuation: NXT

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NXT boasts a 8 out of 10:

• A Price/Earnings ratio of 11.22 indicates a reasonable valuation of NXT.
• Based on the Price/Earnings ratio, NXT is valued cheaply inside the industry as 88.78% of the companies are valued more expensively.
• NXT is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
• With a Price/Forward Earnings ratio of 11.17, the valuation of NXT can be described as very reasonable.
• 89.80% of the companies in the same industry are more expensive than NXT, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 21.32. NXT is valued slightly cheaper when compared to this.
• NXT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NXT is cheaper than 90.82% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, NXT is valued cheaply inside the industry as 86.73% of the companies are valued more expensively.
• NXT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• NXT has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NXT has achieved a 9:

• NXT has a Return On Assets of 18.69%. This is amongst the best in the industry. NXT outperforms 98.98% of its industry peers.
• The Return On Equity of NXT (39.64%) is better than 98.98% of its industry peers.
• With an excellent Return On Invested Capital value of 26.41%, NXT belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for NXT is significantly above the industry average of 9.61%.
• The 3 year average ROIC (17.04%) for NXT is below the current ROIC(26.41%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 20.12%, NXT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• NXT's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 25.83%, NXT belongs to the top of the industry, outperforming 98.98% of the companies in the same industry.
• In the last couple of years the Operating Margin of NXT has grown nicely.
• NXT's Gross Margin of 37.66% is amongst the best of the industry. NXT outperforms 85.71% of its industry peers.
• In the last couple of years the Gross Margin of NXT has grown nicely.

Health Analysis for NXT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NXT has earned a 8 out of 10:

• NXT has an Altman-Z score of 3.30. This indicates that NXT is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.30, NXT is doing good in the industry, outperforming 73.47% 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 94.90% 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.
• With a decent Debt to Equity ratio value of 0.10, NXT is doing good in the industry, outperforming 68.37% of the companies in the same industry.
• NXT has a Current Ratio of 2.20. This indicates that NXT is financially healthy and has no problem in meeting its short term obligations.
• NXT has a better Current ratio (2.20) than 65.31% of its industry peers.
• NXT's Quick ratio of 1.96 is fine compared to the rest of the industry. NXT outperforms 76.53% of its industry peers.

Growth Assessment of NXT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NXT boasts a 7 out of 10:

• The Earnings Per Share has grown by an impressive 57.49% over the past year.
• NXT shows a strong growth in Revenue. In the last year, 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!
• Based on estimates for the next years, NXT will show a quite strong growth in Revenue. The Revenue will grow by 10.91% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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

For an up to date full fundamental analysis you can check the fundamental report of NXT

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.