Next Hydrogen Solutions Inc (NXH) AI Stock Analysis

• Market Cap: C$18.32M
• Dividend Yield: N/A
• Average Volume (3M): 9.29K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.48
• Revenue Growth: 191.85%
• EPS Growth: -21.83%
• Country: CA
• Employees: 43
• Sector: Energy
• Sector Strength: 74
• Industry: Industrial - Machinery
• EPS (TTM): -0.64
• Shares Outstanding: 22,903,467
• 10 Day Avg. Volume: 8,087
• 30 Day Avg. Volume: 9,291
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.47
• Price to Cash Flow (P/CF): -0.60
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Next Hydrogen Solutions Inc. faces substantial financial challenges with negative profitability and cash flow, as well as a deteriorating balance sheet. While technical analysis shows some positive momentum, the overall valuation is concerning due to ongoing losses. The lack of earnings call insights or significant corporate events leaves the financial performance and technical analysis as primary factors in the low overall score.

Next Hydrogen Solutions Inc Business Overview & Revenue Model

Company Description

Next Hydrogen Solutions Inc (NXH) is a Canadian company specializing in the design and production of advanced electrolyzers for the hydrogen generation sector. The company's core products are innovative hydrogen generation systems that facilitate the production of clean hydrogen, which is essential for various applications across industries such as energy, transportation, and industrial processes.

How the Company Makes Money

Next Hydrogen Solutions Inc generates revenue primarily through the sale of its hydrogen electrolyzers and related systems. The company's revenue streams include direct sales of their proprietary electrolyzer units to industries looking to integrate green hydrogen solutions into their operations. Additionally, Next Hydrogen may engage in strategic partnerships with other companies and governments to support large-scale hydrogen projects, thus enhancing its market presence and revenue potential. Service contracts for maintenance and support of the installed systems may also contribute to the company's earnings.

Next Hydrogen Solutions Inc Financial Statement Overview

Summary

Next Hydrogen Solutions Inc. is showing growth in revenue but is heavily challenged by profitability and cash flow issues. Persistently negative margins and cash flows, coupled with a deteriorating balance sheet, indicate significant financial challenges. While revenue growth is a positive sign, the company must address operational inefficiencies and financial leverage to improve its financial health.

Income Statement

Next Hydrogen Solutions Inc. has shown consistent revenue growth, with a significant increase from $951,908 in 2023 to $2,056,379 in TTM, indicating a strong growth trajectory. However, the company faces challenges with profitability, as reflected by negative gross profit margins and high net losses, indicating operational inefficiencies and high costs relative to revenue. The EBIT and EBITDA margins are severely negative, highlighting substantial operating losses.

Balance Sheet

The company's balance sheet shows a concerning level of debt compared to its equity, with a high debt-to-equity ratio. The equity has significantly eroded over time, dropping to $1,769,082 in the TTM period. The return on equity is negative due to net losses, and the equity ratio has decreased, suggesting increasing financial leverage and potential risks in sustaining operations.

Cash Flow

Cash flows are under significant pressure, with negative operating and free cash flow indicating the company is struggling to generate cash from its core operations. The free cash flow has worsened from -$10,749,977 in 2023 to -$8,589,543 in TTM, although the negative trend remains. The operating cash flow to net income ratio is unfavorable, reflecting inefficiencies.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.06M	951.91K	721.59K	177.59K	1.77K	58.44K
	Gross Profit
-293.71K	-288.79K	-712.06K	95.35K	1.77K	-117.11K
	EBIT
-16.16M	-12.49M	-14.03M	-16.66M	-762.99K	-281.48K
	EBITDA
-13.48M	-10.91M	-13.32M	-25.98M	488.15K	-31.89K
	Net Income Common Stockholders
-14.58M	-12.01M	-14.28M	-25.01M	423.31K	-322.88K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.82M	10.91M	22.08M	39.20M	1.82M	1.16M
	Total Assets
2.52M	25.44M	33.73M	48.06M	2.52M	1.86M
	Total Debt
5.26M	1.83M	2.04M	2.24M	5.26M	2.51M
	Net Debt
4.73M	-9.08M	-20.04M	-36.96M	4.73M	2.10M
	Total Liabilities
32.09K	12.84M	9.82M	10.26M	32.09K	19.24K
	Stockholders Equity
2.49M	12.61M	23.91M	37.79M	2.49M	1.84M
Cash Flow		Free Cash Flow
-8.59M	-10.75M	-16.67M	-13.67M	-84.75K	-222.10K
	Operating Cash Flow
-6.20M	-8.22M	-12.64M	-12.55M	-83.70K	-222.10K
	Investing Cash Flow
-2.39M	-2.53M	-4.04M	-1.55M	-344.25K	957.15K
	Financing Cash Flow
-93.17K	-425.68K	-440.47K	52.21M	4.78M	1.89M

Next Hydrogen Solutions Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXH, the sentiment is Neutral. The current price of 0.8 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.81, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NXH.

Next Hydrogen Solutions Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPS.A	78 Outperform	$952.75M	13.32	26.76%	1.40%	11.02%	12.83%
Sector *	58 Neutral	$9.12B	5.24	-7.59%	7.51%	0.53%	-65.25%
BLDP	45 Neutral	$464.47M	―	-38.88%	―	-30.80%	-84.41%
NXH	38 Underperform	C$18.32M	―	-170.06%	―	191.85%	-21.83%
DYA	28 Underperform	C$83.19M	―	2492.91%	―	19.47%	-9.09%

Next Hydrogen Solutions Inc Corporate Events

Next Hydrogen Announces Board Resignation Amidst Growth

Next Hydrogen Solutions Inc. announced the resignation of Matthew Fairlie from its Board of Directors, effective January 15, 2025. Fairlie, who has significantly contributed to the company’s growth and innovation in green hydrogen technology, plans to engage in projects related to education and environmental advocacy. His departure marks a pivotal moment for Next Hydrogen as it continues to scale its technology to offer commercial solutions for decarbonization.

Next Hydrogen Closes Debenture Offering

Next Hydrogen Solutions Inc. has successfully closed a private placement of unsecured convertible debentures, raising C$2.725 million to support its capital needs for 2025. The company is also exploring strategic opportunities, including technology licensing, to ensure financial stability for 2026 and beyond.

Next Hydrogen Eyes $5M Financing for Growth

Next Hydrogen Solutions Inc. has received a Letter of Interest from Export Development Canada for up to $5 million in potential working capital debt financing, contingent on thorough due diligence. The company sees significant export potential for its innovative electrolyzers to support the global shift towards a hydrogen economy.

Next Hydrogen’s Financial Progress and Market Expansion

Next Hydrogen Solutions Inc. has reported significant progress with its second-generation electrolyzers, boosting its financial prospects for 2025. The company is actively pursuing various funding options, including a $3M convertible debt offering and government grants, to support its growth and technology development. Collaborations with industry leaders like Pratt & Whitney and General Electric Vernova are positioning Next Hydrogen as a key player in the green hydrogen market.

Next Hydrogen Announces $3M Convertible Debentures Offering

Next Hydrogen Solutions Inc. has announced a private placement of unsecured convertible debentures aimed at raising up to $3 million. These funds will be used to support the company’s scale-up efforts and general corporate purposes. The debentures offer a 10% annual interest and can be converted into common shares, appealing to investors looking for potential equity in the growing hydrogen sector.

Next Hydrogen Partners with Pratt & Whitney

Next Hydrogen Solutions Inc. is collaborating with Pratt & Whitney Canada to develop high-efficiency electrolyzers for the aviation industry, aiming to produce green hydrogen as a critical element in reducing aviation CO2 emissions. This partnership, part of Canada’s Initiative for Sustainable Aviation Technology, will test hydrogen combustion technology on a turboprop engine and explore advanced materials for gas turbine engines to improve efficiency and sustainability.