Nextracker Inc-Class A (NASDAQ:NXT): An Affordable Growth Stock with Strong Fundamentals

Investors looking for growth chances at fair prices often use screening methods that consider several basic factors. The "Affordable Growth" method focuses on companies with good growth paths while keeping solid earnings and a strong financial position, all at prices that seem acceptable. This process tries to find businesses that mix growth possibility with basic steadiness, possibly providing good returns for the risk taken. Nextracker Inc-Class A (NASDAQ:NXT) recently appeared from this kind of screening process, matching the standards of growth scores above 7, good earnings and health numbers, and price measures above the level of 5.

Growth Path

Nextracker shows notable growth features that are central to its attraction as a growth option. The company's past results show significant speed, and future estimates point to ongoing, though slightly slower, growth.

• Earnings Per Share has grown by 27.14% over the past year, with a three-year average growth rate of 32.95%
• Revenue went up by 13.26% in the last year, keeping a solid 20.37% average yearly growth over several years
• Future estimates predict 8.20% EPS growth and 11.34% revenue growth each year

While the growth speed is anticipated to slow from past peaks, the expected growth is still significant and places Nextracker ahead of many companies in the industrial field. This continued growth trend is important for the affordable growth plan, as it finds companies with proven growth ability instead of uncertain possibility.

Price Assessment

The company's price measures show an interesting picture that balances growth hopes with acceptable cost. Even with strong business results, Nextracker trades at levels that do not seem high compared to both field norms and wider market measures.

• P/E ratio of 17.83 looks good against the field average of 37.66 and S&P 500's 27.86
• Future P/E of 17.72 stays under the S&P 500's 23.29 future level
• Enterprise Value to EBITDA and Price/Free Cash Flow ratios are lower priced than 81.52% and 88.04% of field competitors respectively

These price features are necessary for the affordable growth method, making sure investors do not pay too much for growth outlook. The acceptable levels give some room for error while still letting investors take part in the company's growth story.

Earnings Strength

Nextracker's business effectiveness is especially notable, with numbers that are near the best in its field. This earnings strength supports the company's capacity to turn growth into value for shareholders.

• Return on Invested Capital of 22.81% is better than 97.83% of field rivals
• Operating margin of 21.47% and profit margin of 17.55% are in the top groups of the electrical equipment field
• All margin types have gotten better in recent years, showing operational improvements

High earnings are key for lasting growth, as it supplies the money for continued spending and expansion without too much need for outside funds. This part strengthens the company's place as a good growth option.

Financial Position

The company keeps a strong balance sheet that backs its growth goals without too much danger. Nextracker's money situation provides steadiness along with its growth path.

• No existing debt places the company well against competitors that owe money
• Current ratio of 2.16 shows good short-term cash availability
• Altman-Z score of 5.45 points to low failure risk, doing better than 79.35% of field peers

A good financial position lowers business risk and gives room to handle economic changes or put money into growth chances when they come. This feature finishes the view of a company that mixes growth with basic steadiness.

Investment Points

Nextracker offers an interesting profile for investors looking for growth at acceptable prices. The company works in the renewable energy infrastructure field, supplying solar tracking technology that gains from the worldwide move toward clean energy. Its full solutions place it well inside a rising market, while its basic numbers point to effective operations and money discipline.

The mix of strong past growth, acceptable future estimates, very good earnings, and clear balance sheet, all available at prices below field and market averages, makes Nextracker worth looking at for growth-focused portfolios. Investors can see the complete basic analysis report for a more detailed look at these numbers.

For investors wanting to find similar chances, the Affordable Growth screening method can be used to find other companies meeting these balanced standards.

Disclaimer: This analysis is based on basic data and screening methods for information only. It is not investment guidance, a suggestion, or a support of any security. Investors should do their own study and talk with money advisors before making investment choices. Past results do not ensure future outcomes, and all investments have risk including possible loss of original money.