NEXTRACKER INC-CL A (NASDAQ:NXT) is probably undervalued for the fundamentals it is displaying.

NEXTRACKER INC-CL A (NASDAQ:NXT) has caught the attention of our stock screener as a great value stock. NXT excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Analysis for NXT

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NXT has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 11.09, the valuation of NXT can be described as reasonable.
• 89.25% of the companies in the same industry are more expensive than NXT, based on the Price/Earnings ratio.
• NXT is valuated cheaply when we compare the Price/Earnings ratio to 28.37, which is the current average of the S&P500 Index.
• NXT is valuated reasonably with a Price/Forward Earnings ratio of 11.08.
• Based on the Price/Forward Earnings ratio, NXT is valued cheaply inside the industry as 88.17% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.59, NXT is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, NXT is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, NXT is valued cheaply inside the industry as 90.32% 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.

Profitability Analysis for NXT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NXT has earned a 9 out of 10:

• NXT has a Return On Assets of 18.69%. This is amongst the best in the industry. NXT outperforms 100.00% of its industry peers.
• With an excellent Return On Equity value of 39.64%, NXT belongs to the best of the industry, outperforming 98.92% of the companies in the same industry.
• NXT's Return On Invested Capital of 26.41% is amongst the best of the industry. NXT outperforms 97.85% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for NXT is significantly above the industry average of 9.76%.
• The 3 year average ROIC (17.04%) for NXT is below the current ROIC(26.41%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 20.12%, NXT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of NXT has grown nicely.
• The Operating Margin of NXT (25.83%) is better than 98.92% of its industry peers.
• In the last couple of years the Operating Margin of NXT has grown nicely.
• The Gross Margin of NXT (37.66%) is better than 86.02% of its industry peers.
• NXT's Gross Margin has improved in the last couple of years.

What does the Health looks like for NXT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NXT has achieved a 8 out of 10:

• NXT has an Altman-Z score of 3.25. This indicates that NXT is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of NXT (3.25) is better than 76.34% of its industry peers.
• 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 has a better Debt to FCF ratio (0.29) than 94.62% of its industry peers.
• A Debt/Equity ratio of 0.10 indicates that NXT is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.10, NXT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• A Current Ratio of 2.20 indicates that NXT has no problem at all paying its short term obligations.
• NXT's Current ratio of 2.20 is fine compared to the rest of the industry. NXT outperforms 62.37% of its industry peers.
• NXT's Quick ratio of 1.96 is fine compared to the rest of the industry. NXT outperforms 76.34% of its industry peers.

Growth Assessment of 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. NXT has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 57.49% over the past year.
• Looking at the last year, NXT shows a very strong growth in Revenue. The Revenue has grown by 21.46%.
• Measured over the past years, NXT shows a very strong growth in Revenue. The Revenue has been growing by 30.49% on average per year.
• Based on estimates for the next years, NXT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.14% on average per year.
• The Revenue is expected to grow by 10.99% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found 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.