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

• Market Cap: $8.63B
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.46
• Revenue Growth: 21.46%
• EPS Growth: 123.22%
• Country: US
• Employees: 1,300
• Sector: Technology
• Sector Strength: 84
• Industry: Solar
• EPS (TTM): 1.29
• Shares Outstanding: 146,263,960
• 10 Day Avg. Volume: 1,692,384
• 30 Day Avg. Volume: 2,747,660
• PEG Ratio: -14.89
• Price to Book (P/B): -0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.92
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.15
• Enterprise Value/Ebitda: 0.39
• 1Y Price Target: $63.94
• Price Target Upside: 6.30% Upside
• Rating Consensus: Strong 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 Position

Demand remains steady across U.S. and international markets, where NXT holds the top share.

Strategic Positioning

NXT is viewed as a best-in-class execution story and well insulated versus peers due to its 100% U.S.-based tracker manufacturing and differentiated contract structure.

Negative Factors

Legislative Risks

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

Market Demand

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

Profitability Concerns

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., 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 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
	EBIT
639.11M	587.12M	168.49M	65.91M	158.53M
	EBITDA
639.11M	626.18M	174.55M	76.31M	175.34M
	Net Income Common Stockholders
509.17M	306.24M	1.14M	50.91M	124.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
766.10M	474.05M	159.31M	38.37M	217.99M
	Total Assets
3.19B	2.52B	1.42B	1.02B	880.97M
	Total Debt
0.00	143.97M	147.15M	4.50M	4.50M
	Net Debt
-766.10M	-330.09M	17.14M	-24.57M	-186.09M
	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: 60.15
• 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 60.15 is above the 20-day moving average (MA) of 57.59, above the 50-day MA of 48.21, and above the 200-day MA of 42.00, indicating a bullish trend. The MACD of 2.92 indicates Positive momentum. The RSI at 68.62 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 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	$8.63B	17.36	39.33%	―	21.46%	123.22%
ENPH	72 Outperform	$5.91B	42.12	17.13%	―	-22.15%	-45.22%
SHLS	70 Outperform	$869.31M	45.04	3.43%	―	-18.10%	-36.91%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
ARRY	61 Neutral	$1.18B	―	-49.11%	―	-21.31%	-593.57%
SEDG	56 Neutral	$1.24B	―	-121.50%	―	-57.89%	-559.87%
CSIQ	50 Neutral	$761.47M	20.05	-0.39%	―	-19.06%	-104.91%