NEXTRACKER INC-CL A (NXT)
US65290E1010 - Common Stock
We assign a fundamental rating of 5 out of 10 to NXT. NXT was compared to 87 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of NXT get a neutral evaluation. Nothing too spectacular is happening here. NXT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
NXT had positive earnings in the past year.
NXT had a positive operating cash flow in the past year.
Of the past 5 years NXT 4 years were profitable.
In multiple years NXT reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 0.40%, NXT is doing good in the industry, outperforming 69.41% of the companies in the same industry.
The Return On Invested Capital of NXT (20.04%) is better than 97.65% 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 10.39%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | N/A | ||
| ROIC | 20.04% |
ROA(3y)6.4%
ROA(5y)7.6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.74%
ROIC(5y)18.2%
1.3 Margins
NXT's Profit Margin of 0.37% is fine compared to the rest of the industry. NXT outperforms 68.24% of its industry peers.
NXT's Profit Margin has declined in the last couple of years.
NXT has a better Operating Margin (15.65%) than 85.88% of its industry peers.
In the last couple of years the Operating Margin of NXT has declined.
Looking at the Gross Margin, with a value of 24.67%, NXT is in line with its industry, outperforming 54.12% of the companies in the same industry.
NXT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.65% | ||
| PM (TTM) | 0.37% | ||
| GM | 24.67% |
OM growth 3Y-11.35%
OM growth 5YN/A
PM growth 3Y-81.88%
PM growth 5YN/A
GM growth 3Y-6.02%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NXT is creating value.
Compared to 1 year ago, NXT has more shares outstanding
Compared to 1 year ago, NXT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.56, we must say that NXT is in the distress zone and has some risk of bankruptcy.
NXT has a Altman-Z score (0.56) which is comparable to the rest of the industry.
NXT has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
NXT has a Debt to FCF ratio of 0.42. This is amongst the best in the industry. NXT outperforms 94.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 0.56 |
ROIC/WACC1.95
WACC10.26%
2.3 Liquidity
NXT has a Current Ratio of 1.87. This is a normal value and indicates that NXT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NXT (1.87) is comparable to the rest of the industry.
NXT has a Quick Ratio of 1.60. This is a normal value and indicates that NXT is financially healthy and should not expect problems in meeting its short term obligations.
NXT's Quick ratio of 1.60 is in line compared to the rest of the industry. NXT outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
NXT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -165.85%.
The earnings per share for NXT have been decreasing by -68.93% on average. This is quite bad
NXT shows a strong growth in Revenue. In the last year, 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.
EPS 1Y (TTM)-165.85%
EPS 3Y-68.93%
EPS 5YN/A
EPS growth Q2Q-72.46%
Revenue 1Y (TTM)25.12%
Revenue growth 3Y17.54%
Revenue growth 5YN/A
Revenue growth Q2Q38.38%
3.2 Future
The Earnings Per Share is expected to grow by 25.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.38% on average over the next years. This is quite good.
EPS Next Y179.84%
EPS Next 2Y80.65%
EPS Next 3Y54.47%
EPS Next 5Y25.93%
Revenue Next Year29.66%
Revenue Next 2Y23.69%
Revenue Next 3Y19.43%
Revenue Next 5Y11.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 17.72, which indicates a rather expensive current valuation of NXT.
Based on the Price/Earnings ratio, NXT is valued cheaper than 81.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, NXT is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.79, which indicates a correct valuation of NXT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NXT indicates a rather cheap valuation: NXT is cheaper than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, NXT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
NXT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NXT is cheaper than 76.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NXT is valued cheaper than 85.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 16.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NXT 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.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y80.65%
EPS Next 3Y54.47%
5. Dividend
5.1 Amount
No dividends for NXT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NEXTRACKER INC-CL A
NASDAQ:NXT (4/26/2024, 7:07:31 PM)
After market: 43.7636 +0 (+0.01%)43.76
+0.78 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap6.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 13.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.65% | ||
| PM (TTM) | 0.37% | ||
| GM | 24.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-165.85%
EPS 3Y-68.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y179.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.12%
Revenue growth 3Y17.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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