Quixant (NXQ) AI Stock Analysis

• Market Cap: £47.01M
• Dividend Yield: 4.74%
• Average Volume (3M): 71.80K
• Price to Earnings (P/E): 213.5
• Beta (1Y): 0.41
• Revenue Growth: -27.57%
• EPS Growth: -130.10%
• Country: UK
• Employees: 223
• Sector: Consumer Cyclical
• Sector Strength: 78
• Industry: Computer Hardware
• EPS (TTM): <0.01
• Shares Outstanding: 59,885,155
• 10 Day Avg. Volume: 98,360
• 30 Day Avg. Volume: 71,798
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £71.00
• Price Target Upside: -11.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: 71.00p ▼(-11.25% Downside)

The stock's overall score reflects a solid financial foundation and positive corporate events, tempered by mixed technical indicators and a high valuation. The company's strong cash flow and strategic initiatives are positive, but the current P/E ratio suggests caution. Technical analysis indicates some bearish momentum, warranting careful monitoring.

Positive Factors

Cash Generation

Strong cash generation capability allows Quixant to fund operations and investments internally, supporting financial flexibility and resilience.

Balance Sheet Health

A stable balance sheet with low debt-to-equity ratio underscores conservative leverage practices, ensuring long-term financial stability.

Revenue Diversification

Revenue diversification through strategic initiatives enhances market resilience and reduces dependency on single revenue streams, supporting sustained growth.

Negative Factors

Revenue Growth Decline

Despite positive cash flow management, the recent decline in revenue growth poses a challenge to maintaining market competitiveness and expansion.

Profitability Volatility

Volatility in profitability margins can impact financial predictability and investor confidence, potentially affecting long-term strategic planning.

Earnings Decline

A significant decline in earnings per share growth indicates challenges in maintaining profitability, which could hinder future investment and growth opportunities.

Quixant Business Overview & Revenue Model

Company Description

Nexteq plc operates as a business-to-business technology design and supply chain partner to industrial equipment manufacturers North America, Europe, Asia, Australia, rest of the United Kingdom, and internationally. It operates through two divisions, Quixant and Densitron. The Quixant segment engages in the design, development, and manufacture of gaming platforms and display solutions, such as cabinets and other computer platforms, as well as software for the casino gaming and slot machine industry. The Densitron is involved the sale of electronic display products, and control surfaces and systems to industrial markets, primarily broadcast and medical sectors. The company was formerly known as Quixant Plc and changed its name to Nexteq plc in May 2023. Nexteq plc was incorporated in 2001 and is headquartered in Crawley, the United Kingdom.

How the Company Makes Money

Quixant generates revenue through multiple key streams. Primarily, the company earns money by selling gaming hardware, such as gaming machines and embedded computer systems, which are utilized by casinos and gaming operators. Additionally, Quixant offers proprietary software solutions that enhance game performance and user engagement, contributing to its revenue. The company also benefits from recurring revenue through ongoing support and maintenance services for its products. Strategic partnerships with gaming operators and manufacturers further bolster its market presence and sales, allowing Quixant to tap into new opportunities and expand its customer base.

Quixant Financial Statement Overview

Summary

Quixant's financial health is solid, with strengths in cash generation and equity stability, though profitability margins reveal some volatility. The company's revenue growth trajectory is positive, supported by efficient cash flow management and conservative leverage, positioning it well for future opportunities in the hardware and equipment industry.

Income Statement

Quixant has demonstrated strong revenue growth over the years, with a notable increase from 2020 to 2023. Gross profit margin is healthy, reflecting efficient cost management. However, the net profit margin has seen fluctuations, indicating some volatility in profitability. The EBIT and EBITDA margins are reasonable, although recent declines suggest potential challenges in maintaining operating efficiency.

Balance Sheet

The company maintains a solid equity base with a strong equity ratio, indicating financial stability. The debt-to-equity ratio remains low, underscoring conservative leverage practices. Return on equity has shown variability, yet remains positive, reflecting effective use of equity in generating profits. Overall, the balance sheet reflects a stable financial position with manageable liabilities.

Cash Flow

Quixant has demonstrated robust operating cash flow, consistently exceeding net income, which indicates strong cash generation capability. Free cash flow has generally improved, showcasing the company's ability to fund operations and investments internally. The free cash flow to net income ratio indicates efficient cash conversion, supporting financial flexibility and resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.83M	86.68M	114.35M	97.32M	63.35M	49.75M
Gross Profit	40.47M	31.11M	41.52M	31.30M	18.84M	15.64M
EBITDA	6.14M	4.54M	16.42M	12.24M	5.24M	1.71M
Net Income	3.89M	311.00K	10.90M	10.99M	2.59M	-2.31M
Balance Sheet
Total Assets	105.09M	85.49M	102.86M	79.78M	69.89M	59.74M
Cash, Cash Equivalents and Short-Term Investments	37.34M	29.47M	28.41M	11.23M	13.55M	13.76M
Total Debt	2.02M	2.74M	2.15M	1.99M	1.99M	1.97M
Total Liabilities	20.44M	14.87M	20.51M	19.75M	22.59M	13.39M
Stockholders Equity	84.65M	70.62M	82.35M	60.03M	47.31M	46.35M
Cash Flow
Free Cash Flow	22.84M	10.11M	17.52M	-1.61M	1.63M	1.35M
Operating Cash Flow	24.49M	12.97M	19.75M	651.09K	3.20M	3.10M
Investing Cash Flow	―	-1.51M	-1.77M	-2.26M	-1.57M	-1.75M
Financing Cash Flow	―	-10.64M	-3.22M	-2.04M	-1.97M	55.37K

Quixant Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NXQ, the sentiment is Positive. The current price of 80 is above the 20-day moving average (MA) of 75.45, above the 50-day MA of 70.38, and above the 200-day MA of 65.32, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 73.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NXQ.

Quixant Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWE	75 Outperform	£41.80M	11.69	17.41%	4.07%	1.08%	10.37%
CNC	70 Outperform	£170.78M	34.23	12.29%	1.06%	22.72%	-8.82%
NXQ	65 Neutral	£47.01M	213.51	-3.85%	4.74%	-27.57%	-130.10%
Sector *	61 Neutral	$18.08B	12.82	-2.51%	3.03%	1.45%	-15.68%
CLCO	54 Neutral	£1.84M	―		―	―	―
CML	46 Neutral	£43.02M	29.30	-0.04%	4.07%	0.03%	-100.84%

Quixant Corporate Events

Nexteq PLC Reports Steady Progress Amid Market Challenges

Nexteq PLC reported that its trading for the first half of 2025 met market expectations, with a focus on revenue diversification and organic growth. Despite a decrease in revenue compared to the previous year, the company is making progress in expanding its customer base and product offerings. The group’s strategic initiatives, including targeting new customers and developing new products, are aimed at maintaining growth and managing market uncertainties, such as the availability and pricing of DDR4 memory. The company remains optimistic about its future prospects and is actively pursuing strategic acquisitions to enhance its capabilities and market position.

Nexteq’s Densitron Wins Best of Show at NAB 2025 with ProDeck 24

Nexteq’s Densitron brand won the Best of Show Award at the NAB Show 2025 for its ProDeck 24, a broadcast control surface that debuted in North America. This award highlights Nexteq’s innovative capabilities in broadcast technology, underscoring its market leadership and aligning with its growth strategy. The ProDeck 24’s combination of a high-definition touchscreen and programmable buttons, along with its integration with Densitron’s IDS software, demonstrates cutting-edge innovation and has already spurred increased consumer demand. The recognition at the NAB Show has also led to a rise in new business inquiries, energizing Nexteq to continue driving innovation in broadcast solutions.