Next Hydrogen Solutions Inc (NXH) AI Stock Analysis

• Market Cap: C$11.34M
• Dividend Yield: N/A
• Average Volume (3M): 3.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.58
• Revenue Growth: -57.69%
• EPS Growth: 4.44%
• Country: CA
• Employees: 60
• Sector: Energy
• Sector Strength: 63
• Industry: Industrial - Machinery
• EPS (TTM): -0.13
• Shares Outstanding: 22,918,500
• 10 Day Avg. Volume: 2,429
• 30 Day Avg. Volume: 3,267
• 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: C$0.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: C$0.50 ▲(6.38% Upside)

Next Hydrogen Solutions Inc faces significant financial challenges, with declining revenues, persistent losses, and a weakened balance sheet. Technical indicators are mixed, with no clear trend direction. The negative P/E ratio and lack of dividend yield further impact the stock's attractiveness. Overall, the stock is currently a high-risk investment.

Positive Factors

Business Model Strength

NXH's focus on electrolysis systems for hydrogen production positions it well in the growing clean energy sector, supporting long-term demand.

Market Position

NXH's alignment with global decarbonization initiatives enhances its market relevance and potential for strategic partnerships.

Revenue Model

Recurring income from service contracts provides a stable revenue stream, enhancing financial predictability and customer retention.

Negative Factors

Revenue Decline

Declining revenues indicate challenges in market penetration or product adoption, potentially impacting long-term growth prospects.

Negative Equity

Negative equity reflects financial instability, limiting the company's ability to invest in growth opportunities and manage debt.

Cash Flow Challenges

Ongoing cash flow difficulties can hinder operational flexibility and the ability to fund strategic initiatives, affecting long-term viability.

Next Hydrogen Solutions Inc Business Overview & Revenue Model

Company Description

Next Hydrogen Solutions Inc (NXH) is a clean energy technology company focused on the production of hydrogen through innovative and sustainable methods. Operating primarily in the renewable energy sector, NXH specializes in the development and commercialization of electrolysis systems that convert water into hydrogen using renewable electricity. The company's core offerings aim to support the global transition to a low-carbon economy by providing efficient and scalable hydrogen production solutions for various applications, including transportation, industrial processes, and energy storage.

How the Company Makes Money

Next Hydrogen Solutions generates revenue primarily through the sale of its proprietary electrolysis systems and related technology to commercial customers in the hydrogen production market. The company's revenue model is built on direct sales of equipment, as well as ongoing service and maintenance contracts that provide recurring income. Additionally, NXH may engage in strategic partnerships with energy companies, governments, and research institutions, which can lead to collaborative projects and funding opportunities that enhance its revenue streams. The growing demand for clean hydrogen solutions, driven by global decarbonization initiatives, also contributes to NXH's earnings potential.

Next Hydrogen Solutions Inc Financial Statement Overview

Summary

Next Hydrogen Solutions Inc is facing significant financial challenges across all verticals. The income statement reflects declining revenues and persistent losses. The balance sheet is weakened by negative equity and high leverage, while cash flow statements indicate ongoing cash flow difficulties. The company needs to address these issues to improve financial health and stability.

Income Statement

Next Hydrogen Solutions Inc has experienced significant revenue decline in the TTM period, with a negative revenue growth rate of -24.75%. The company is facing substantial losses, as indicated by a negative net profit margin of -11.98% and negative EBIT and EBITDA margins. The gross profit margin has improved to 45.21% in the TTM, but overall profitability remains a concern.

Balance Sheet

The balance sheet shows a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.23. The return on equity is also negative, indicating that the company is not generating returns on its equity base. The equity ratio is not directly available but is implied to be negative due to negative equity, highlighting financial instability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, with a free cash flow growth rate of -13.15% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	841.61K	1.36M	951.91K	721.59K	177.59K	1.77K
Gross Profit	61.54K	-334.35K	-288.79K	-712.06K	95.35K	1.77K
EBITDA	-10.96M	-13.46M	-10.91M	-13.32M	-25.98M	488.15K
Net Income	-12.42M	-14.60M	-12.01M	-14.28M	-25.01M	423.31K
Balance Sheet
Total Assets	14.64M	15.46M	25.44M	33.73M	48.06M	2.52M
Cash, Cash Equivalents and Short-Term Investments	1.77M	3.59M	10.91M	22.08M	39.20M	1.82M
Total Debt	8.21M	4.68M	1.83M	2.04M	2.24M	5.26M
Total Liabilities	21.76M	16.83M	12.84M	9.82M	10.26M	32.09K
Stockholders Equity	-7.12M	-1.37M	12.61M	23.91M	37.79M	2.49M
Cash Flow
Free Cash Flow	-10.60M	-10.69M	-10.75M	-16.67M	-13.67M	-84.75K
Operating Cash Flow	-8.89M	-10.00M	-8.22M	-12.64M	-12.55M	-83.70K
Investing Cash Flow	-1.69M	-678.04K	-2.53M	-4.04M	-1.55M	-344.25K
Financing Cash Flow	6.95M	3.35M	-425.68K	-440.47K	52.21M	4.78M

Next Hydrogen Solutions Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXH, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.48, below the 50-day MA of 0.51, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	65 Neutral	$15.27B	7.59	4.09%	5.23%	3.88%	-62.31%
DYA	44 Neutral	C$71.16M	―	-1898.77%	―	15.28%	-24.76%
PYR	41 Neutral	C$46.88M	―	-5701.32%	―	0.58%	45.10%
NXH	40 Underperform	C$11.34M	―	-525.98%	―	-57.69%	4.44%
BLDP	―	$580.91M	―	-38.04%	―	―	―

Next Hydrogen Solutions Inc Corporate Events

Next Hydrogen Secures $1.5 Million in Loans to Support Operations

Next Hydrogen Solutions Inc. has secured $1.5 million in loans, including $530,000 from its directors and officers and $1 million from a commercial lender, to support its working capital and corporate purposes. This financial move aims to maintain operations and evaluate long-term strategic solutions, highlighting the company’s commitment to its stakeholders and its pursuit of sustainable growth in the clean hydrogen sector.

The most recent analyst rating on (TSE:NXH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.

Next Hydrogen Solutions Reports Q2 2025 Financial Milestones Amid Challenges

Next Hydrogen Solutions Inc. announced its Q2 2025 financial results, highlighting significant achievements despite financial challenges. The company validated its Canadian-designed electrolyzer technology, achieving higher hydrogen output per cell compared to conventional designs. Recent milestones include the operation of a major clean hydrogen fueling station in Ontario and collaborations to use hydrogen in aviation. Financially, the company has secured loans and debt facilities to support its operations and scale-up efforts.

The most recent analyst rating on (TSE:NXH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.

Next Hydrogen Launches Ontario’s Largest Clean Hydrogen Fueling Station

Next Hydrogen Solutions Inc. has successfully launched Ontario’s largest onsite clean hydrogen fueling station at a distribution center, marking a significant milestone in the company’s operations. This development showcases Next Hydrogen’s innovative electrolyzer technology, which is expected to advance large-scale, low-cost green hydrogen production, thereby strengthening its position in the clean energy industry and offering potential benefits to stakeholders involved in the decarbonization of transportation and industrial sectors.

The most recent analyst rating on (TSE:NXH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.

Next Hydrogen Secures $1.5 Million in Loans to Support Operations

Next Hydrogen Solutions Inc. has announced a $1.5 million loan agreement, including $530,000 from its directors and officers and a $1 million loan from a commercial lender. The funds will be used to maintain operations and explore long-term financial strategies, highlighting the company’s commitment to sustaining its workforce and operations amid financial evaluations. The issuance of shares as part of the loan agreement is subject to regulatory approvals, and the participation of insiders in the loan constitutes a related party transaction under applicable regulations.

The most recent analyst rating on (TSE:NXH) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Next Hydrogen Solutions Inc stock, see the TSE:NXH Stock Forecast page.