NEXTracker, Inc. Class A (NXT) AI Stock Analysis

• Market Cap: $5.71B
• Dividend Yield: N/A
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.35
• Revenue Growth: 21.46%
• EPS Growth: 123.22%
• Country: US
• Employees: 1,050
• Sector: Technology
• Sector Strength: 40
• Industry: Solar
• EPS (TTM): 3.79
• Shares Outstanding: 143,710,200
• 10 Day Avg. Volume: 1,803,920
• 30 Day Avg. Volume: 2,004,692
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.33
• Price to Cash Flow (P/CF): 11.20
• P/FCF Ratio: 11.20
• 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: $56.71
• Price Target Upside: 53.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

NEXTracker, Inc. Class A shows strong financial performance and positive earnings call outcomes, reinforcing its growth trajectory in the renewable energy sector. While the valuation is attractive, technical indicators suggest some caution due to potential downward momentum. Overall, the company's robust financial health and strategic positioning provide a solid foundation for future growth, though international pricing pressures warrant monitoring.

Positive Factors

Bookings and Backlog

Record-breaking bookings were added both in the US and internationally, significantly boosting the total backlog.

Financial Performance

The company's FY'25 guidance was raised, indicating strong future performance expectations.

Market Position

NXT is viewed as a top pick in Clean Energy, highlighting its strong position in the sector.

Negative Factors

Competitive Pressure

International business performance is better than expected, with a strong market position in regions like Europe despite competition from Chinese products.

Pricing Concerns

There is concern that tracker ASPs may start to decline and near-term solar capacity growth may slow somewhat due to policy uncertainty.

NEXTracker, Inc. Class A Business Overview & Revenue Model

Company Description

Nextracker Inc., an energy solutions company, provides solar tracker solutions for PV projects. The company offers solar trackers, such as Bifacial PV modules for large-scale solar; NX Horizon for solar power plants; NX Gemini two-in-portrait solar tracker that optimizes lifetime value and performance of power plants for project developers and asset owners; and NX Horizon XTR, an all-terrain solar tracker. It also provides TrueCapture, an intelligent and self-adjusting tracker control system for PV power plants; and NX Navigator, an operational control and risk mitigation software. The company was incorporated in 2013 and is based in Fremont, California. Nextracker Inc. operates as a subsidiary of Flex Ltd.

How the Company Makes Money

NEXTracker, Inc. generates revenue primarily through the sale of its solar tracking systems and related services. The company designs and manufactures solar trackers that allow solar panels to follow the sun's trajectory, maximizing energy capture and efficiency. Revenue streams include direct sales of these tracking systems to solar power developers and operators, as well as installation and maintenance services. NEXTracker may also engage in strategic partnerships with solar energy companies and EPC (Engineering, Procurement, and Construction) contractors, contributing to its earnings through collaborative projects and long-term service agreements. Additionally, the company might benefit from government incentives and policies that promote renewable energy adoption, indirectly supporting its financial performance.

NEXTracker, Inc. Class A Financial Statement Overview

Summary

NEXTracker, Inc. Class A demonstrates strong financial performance with robust revenue growth, high profitability, and efficient cash flow management. It maintains a solid balance sheet with low leverage and high returns on equity. However, there is room for improvement in asset management.

Income Statement

NEXTracker, Inc. Class A has shown impressive revenue growth, with a TTM revenue of $2.77 billion, up from $2.5 billion in the previous year, indicating a strong growth trajectory. The gross profit margin stands at 37.7%, and the net profit margin is at a solid 20.1%, reflecting efficient cost management and profitability. The EBIT margin of 25.8% and EBITDA margin of 26.9% further highlight operational efficiency. Overall, the income statement reflects strong growth and profitability within the renewable energy sector.

Balance Sheet

The company's balance sheet shows a healthy equity position with stockholders' equity of $1.41 billion and a low debt-to-equity ratio of 0.005, indicating minimal leverage. Return on equity (ROE) is substantial at 39.7%, reflecting effective utilization of equity. However, the equity ratio is moderate at 47.1%, suggesting balanced funding between equity and liabilities. Overall, the balance sheet is strong with low leverage and high equity returns, though the equity ratio indicates room for improvement in asset management.

Cash Flow

NEXTracker, Inc. Class A has demonstrated robust cash flow performance with a TTM operating cash flow of $526 million and free cash flow of $500 million, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.94, suggesting effective conversion of income to cash. The free cash flow to net income ratio is also favorable at 0.90. The free cash flow growth rate is impressive, highlighting efficient capital expenditure and cash management strategies. The cash flow statement reflects strong liquidity and cash generation capabilities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.77B	2.50B	1.90B	1.46B	1.20B	1.17B
	Gross Profit
1.04B	813.05M	286.97M	147.03M	231.98M	212.91M
	EBIT
714.48M	587.12M	168.49M	65.91M	158.53M	148.91M
	EBITDA
745.16M	591.48M	174.55M	76.31M	175.34M	166.85M
	Net Income Common Stockholders
557.54M	306.24M	1.14M	50.91M	124.35M	118.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.37M	474.05M	159.31M	38.37M	217.99M	2.95M
	Total Assets
1.02B	2.52B	1.42B	1.02B	880.97M	619.16M
	Total Debt
2.70M	143.97M	147.15M	4.50M	4.50M	5.40M
	Net Debt
-26.37M	-330.09M	17.14M	-24.57M	-186.09M	2.45M
	Total Liabilities
1.02B	1.53B	934.82M	1.02B	424.92M	388.10M
	Stockholders Equity
-3.04M	961.01M	-3.08B	-3.04M	456.05M	231.06M
Cash Flow		Free Cash Flow
499.59M	422.31M	104.49M	-153.03M	91.31M	239.34M
	Operating Cash Flow
526.24M	428.97M	107.67M	-147.11M	94.27M	241.00M
	Investing Cash Flow
-171.33M	-6.66M	-3.16M	-5.75M	-2.96M	-1.66M
	Financing Cash Flow
-29.19M	-78.27M	-3.57M	-8.66M	96.33M	-250.76M

NEXTracker, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXT, the sentiment is Negative. The current price of 37 is below the 20-day moving average (MA) of 42.83, below the 50-day MA of 44.79, and below the 200-day MA of 41.02, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 30.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXT.

NEXTracker, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	75 Outperform	$5.71B	10.34	39.64%	―	21.46%	123.22%
ENPH	68 Neutral	$7.10B	73.33	11.30%	―	-41.92%	-76.24%
SHLS	63 Neutral	$565.00M	22.23	4.38%	―	-18.35%	-42.58%
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
CSIQ	53 Neutral	$541.31M	15.12	1.34%	―	-21.68%	-99.75%
SEDG	51 Neutral	$843.53M	―	-116.01%	―	-68.86%	-4917.87%
ARRY	49 Neutral	$688.62M	―	-53.46%	―	-41.91%	-459.51%