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

• Market Cap: $9.54B
• Dividend Yield: N/A
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.48
• Revenue Growth: 21.46%
• EPS Growth: 123.22%
• Country: US
• Employees: 1,300
• Sector: Technology
• Sector Strength: 91
• Industry: Solar
• EPS (TTM): 1.29
• Shares Outstanding: 147,832,980
• 10 Day Avg. Volume: 1,879,837
• 30 Day Avg. Volume: 2,430,300
• PEG Ratio: -0.58
• Price to Book (P/B): 5.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.95
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 8.46
• Enterprise Value/Ebitda: 2.89
• 1Y Price Target: $67.80
• Price Target Upside: 5.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: ―

NEXTracker, Inc. Class A scores a solid 76, reflecting its strong financial performance, robust earnings call results, and reasonable valuation. The company shows impressive revenue growth and profitability, supported by strategic investments and a record backlog, which provide confidence in future growth. However, potential risks include international pricing pressures and the lack of a dividend yield. Technical indicators suggest a neutral market position, which aligns with the overall positive outlook tempered by specific challenges.

Positive Factors

Financial Performance

Strong financial results with record revenue, EBITDA, and cash flow exceeded expectations, highlighting company performance.

Market Demand

Record bookings drove sequential backlog growth, indicating strong demand and future revenue potential.

Operational Resilience

NXT is well insulated from macro and policy shocks due to its 100% U.S.-based tracker production and strategic shift into adjacencies like EBOS and foundations.

Negative Factors

Legislative Risks

Legislative challenges related to utility solar in the U.S. could pose risks in future periods.

Market Conditions

Slowing end markets are expected as a downside risk, leading to trimmed estimates.

Profitability Challenges

Growth in lower-margin international regions could pressure overall profitability despite volume gains.

NEXTracker, Inc. Class A Business Overview & Revenue Model

Company Description

NEXTracker, Inc. Class A (NXT) is a leading global provider of solar tracker and energy storage solutions. Headquartered in California, the company specializes in designing and manufacturing advanced solar tracking systems that optimize the performance of large-scale solar power plants. NEXTracker's innovative products are engineered to increase energy production and efficiency, providing sustainable energy solutions across the globe.

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 impressive revenue growth and high profitability. The income statement shows robust growth with a revenue increase to $2.77 billion and a solid net profit margin of 20.1%. The balance sheet reflects a strong equity position with minimal leverage, though the equity ratio suggests room for asset management improvement. Cash flow performance is robust, indicating strong cash generation capabilities and efficient capital expenditure.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.96B	2.50B	1.90B	1.46B	1.20B
Gross Profit	1.01B	813.05M	286.97M	147.03M	231.98M
EBITDA	639.11M	626.18M	174.55M	76.31M	175.34M
Net Income	509.17M	306.24M	1.14M	50.91M	124.35M
Balance Sheet
Total Assets	3.19B	2.52B	1.42B	1.02B	880.97M
Cash, Cash Equivalents and Short-Term Investments	766.10M	474.05M	159.31M	38.37M	217.99M
Total Debt	0.00	143.97M	147.15M	4.50M	4.50M
Total Liabilities	1.56B	1.53B	934.82M	516.16M	424.92M
Stockholders Equity	1.63B	961.01M	-3.08B	501.13M	456.05M
Cash Flow
Free Cash Flow	621.87M	422.31M	104.49M	-153.03M	91.31M
Operating Cash Flow	655.79M	428.97M	107.67M	-147.11M	94.27M
Investing Cash Flow	-186.10M	-6.66M	-3.16M	-5.75M	-2.96M
Financing Cash Flow	-177.65M	-78.27M	-3.57M	-8.66M	96.33M

NEXTracker, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXT, the sentiment is Positive. The current price of 64.53 is above the 20-day moving average (MA) of 61.82, above the 50-day MA of 59.50, and above the 200-day MA of 45.49, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 60.97 is Neutral, neither overbought nor oversold. The STOCH value of 88.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	$9.54B	18.63	39.33%	―	21.46%	123.22%
SHLS	67 Neutral	$976.30M	51.68	3.43%	―	-18.10%	-36.91%
Sector *	63 Neutral	$34.78B	5.17	-11.38%	1.67%	5.54%	-17.15%
ENPH	61 Neutral	$4.63B	27.90	19.79%	―	4.39%	37.70%
SEDG	58 Neutral	$1.61B	―	-121.50%	―	-57.89%	-559.87%
ARRY	57 Neutral	$1.05B	―	-49.11%	―	-21.31%	-593.57%
CSIQ	53 Neutral	$860.59M	20.05	-0.39%	―	-19.06%	-104.91%