NEXTRACKER INC-CL A (NASDAQ:NXT) was identified as an affordable growth stock by our screening process. The company, which provides solar tracker and software solutions, shows strong growth potential while maintaining solid profitability and financial health. Its valuation also appears reasonable compared to industry peers. Below, we break down why NXT stands out.
Growth Prospects
NXT demonstrates impressive growth metrics:
- Earnings Per Share (EPS) grew 38.36% over the past year.
- Revenue increased 18.38% year-over-year, with a 20.37% average annual growth rate over recent years.
- Future revenue growth is expected to remain strong at 9.01% annually.
While EPS growth is projected to slow slightly, the company’s historical performance and continued revenue expansion make it a compelling growth candidate.
Valuation
NXT trades at a reasonable valuation relative to its industry and broader market:
- P/E ratio of 13.28, cheaper than 89.47% of its industry peers.
- Forward P/E of 14.23, below the industry average of 42.93.
- The stock’s Enterprise Value/EBITDA and Price/Free Cash Flow ratios also indicate it is undervalued compared to competitors.
Profitability & Financial Health
- Profitability Rating: 9/10 – Strong margins, including a 17.21% profit margin and 21.65% operating margin, rank near the top of its sector.
- Health Rating: 6/10 – The company has no debt, a positive current ratio (2.09), and solid liquidity. However, share dilution over the past year is a minor concern.
For a deeper look, review the full fundamental analysis report for NXT.
Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
Disclaimer
This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.
