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Next Hydrogen Solutions Inc (TSE:NXH)
:NXH
Canadian Market

Next Hydrogen Solutions Inc (NXH) AI Stock Analysis

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Next Hydrogen Solutions Inc

(NXH)

Rating:37Underperform
Price Target:
C$0.50
▼(-27.54%Downside)
Next Hydrogen Solutions Inc. is struggling with severe financial issues, including negative profitability and a precarious balance sheet, which are the primary determinants of the low overall score. Technical analysis suggests limited investor confidence, while valuation remains unattractive due to ongoing losses. Although recent corporate events are positive, they are insufficient to counterbalance the financial difficulties. Strategic financial restructuring is crucial for improving stability and sustainability.

Next Hydrogen Solutions Inc (NXH) vs. iShares MSCI Canada ETF (EWC)

Next Hydrogen Solutions Inc Business Overview & Revenue Model

Company DescriptionNext Hydrogen Solutions Inc. designs, manufactures, and sells water and electricity electrolyzers to generate clean hydrogen for use as an energy source. It offers commercial solutions to decarbonize transportation and industrial sectors. The company was founded in 2007 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyNext Hydrogen Solutions Inc generates revenue primarily through the sale of its proprietary electrolyzers to various industries seeking to adopt green hydrogen solutions. Key revenue streams include the direct sale of electrolyzer systems, potential maintenance and support services, and possibly licensing agreements for their technology. Strategic partnerships with industries in sectors such as transportation, energy, and industrial processes can significantly enhance their market reach and revenue potential. Additionally, government incentives and subsidies for clean energy initiatives may contribute to the company's earnings by making their products more attractive to potential buyers.

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
25
Negative
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
30
Negative
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
20
Very Negative
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
TTMDec 2023Dec 2022Dec 2021Mar 2021Mar 2020
Income StatementTotal Revenue
2.06M951.91K721.59K177.59K1.77K58.44K
Gross Profit
-293.71K-288.79K-712.06K95.35K1.77K-117.11K
EBIT
-16.16M-12.49M-14.03M-16.66M-762.99K-281.48K
EBITDA
-13.48M-10.91M-13.32M-25.98M488.15K-31.89K
Net Income Common Stockholders
-14.58M-12.01M-14.28M-25.01M423.31K-322.88K
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.82M10.91M22.08M39.20M1.82M1.16M
Total Assets
2.52M25.44M33.73M48.06M2.52M1.86M
Total Debt
5.26M1.83M2.04M2.24M5.26M2.51M
Net Debt
4.73M-9.08M-20.04M-36.96M4.73M2.10M
Total Liabilities
32.09K12.84M9.82M10.26M32.09K19.24K
Stockholders Equity
2.49M12.61M23.91M37.79M2.49M1.84M
Cash FlowFree 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-344.25K957.15K
Financing Cash Flow
-93.17K-425.68K-440.47K52.21M4.78M1.89M

Next Hydrogen Solutions Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.69
Price Trends
50DMA
0.76
Negative
100DMA
0.75
Negative
200DMA
0.60
Positive
Market Momentum
MACD
-0.03
Positive
RSI
44.96
Neutral
STOCH
86.05
Negative
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 0.69 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.76, and above the 200-day MA of 0.60, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 86.05 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.06B3.04-3.49%5.80%0.53%-50.39%
TSPYR
47
Neutral
C$84.94M-5701.32%14.45%76.75%
TSDYA
40
Underperform
C$68.87M-1898.77%408.78%-20.74%
TSNXH
37
Underperform
C$15.81M-525.98%-24.60%-11.26%
$397.37M-37.81%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NXH
Next Hydrogen Solutions Inc
0.67
0.03
4.69%
BLDP
Ballard Power Systems
1.37
-1.76
-56.23%
TSE:DYA
dynaCERT
0.14
>-0.01
-6.67%
TSE:PYR
PyroGenesis Canada
0.46
-0.13
-22.03%

Next Hydrogen Solutions Inc Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Next Hydrogen Solutions Inc. Reports Q1 2025 Financial Results and Strategic Advancements
Neutral
May 15, 2025

Next Hydrogen Solutions Inc. reported its Q1 2025 financial results, highlighting a decrease in cash balance and revenue compared to the previous year. Despite these financial challenges, the company has made significant strides in its operations, including securing a $5M working capital debt facility from Export Development Canada, achieving over 40,000 hours of data on its test platform, and forming a strategic partnership to enhance its manufacturing capacity. Additionally, the company received important ISO certifications and made key appointments to its board, positioning itself for future growth in the green 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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Next Hydrogen Reports Fiscal 2024 Results and Strategic Milestones
Positive
Apr 24, 2025

Next Hydrogen Solutions Inc. reported its financial results for Q4 and fiscal year 2024, highlighting a revenue increase to $1.4 million and a net loss of $14.6 million. The company achieved significant milestones, including a partnership with a leading hydrogen production system manufacturer to scale up its technology, securing a $5 million working capital debt facility from Export Development Canada, and receiving ISO certifications for its quality and safety management systems. These developments position Next Hydrogen to expand globally and enhance its competitive edge in the hydrogen production market.

Private Placements and FinancingBusiness Operations and Strategy
Next Hydrogen Secures $5M Financing to Boost Green Hydrogen Innovation
Positive
Apr 22, 2025

Next Hydrogen Solutions Inc. has secured $5 million in working capital debt financing from Export Development Canada (EDC) to support its growth and global impact in the hydrogen economy. This funding will aid in scaling up their innovative electrolyzer technology, positioning Next Hydrogen as a leader in Canadian innovation on the global stage, and fostering a strategic relationship with EDC.

Private Placements and Financing
Next Hydrogen Secures $5M Financing to Boost Green Hydrogen Growth
Positive
Apr 22, 2025

Next Hydrogen Solutions Inc. has secured a $5 million working capital debt facility from Export Development Canada to support its growth in the green hydrogen sector. This funding will aid in the deployment of their innovative electrolyser technology, positioning the company as a leader in Canadian innovation on the global stage, and fostering a strategic relationship with EDC.

Product-Related AnnouncementsBusiness Operations and Strategy
Next Hydrogen Partners with Sungrow Hydrogen to Scale Green Hydrogen Solutions
Positive
Mar 24, 2025

Next Hydrogen Solutions Inc. has announced a strategic partnership with Sungrow Hydrogen Sci&Tech. Co. Ltd. to accelerate the commercialization and scale-up of its water electrolysis technology. This collaboration will utilize Sungrow Hydrogen’s 3GW manufacturing facility to fulfill large volume orders starting in 2026, while maintaining control over intellectual property and electrolyzer design. The partnership aims to enhance supply chain efficiency and cost competitiveness, and explore co-development and cross-selling opportunities to offer a broader range of green hydrogen solutions. This strategic move positions both companies to advance the global adoption of green hydrogen, supporting clean energy goals.

Business Operations and StrategyRegulatory Filings and Compliance
Next Hydrogen Achieves Key ISO Certifications, Strengthening Market Position
Positive
Mar 4, 2025

Next Hydrogen Solutions Inc. has received ISO 9001-2015 and ISO 45001-2018 certifications for its Mississauga site, highlighting its commitment to quality and safety standards. These certifications, supported by a $2 million investment from FedDev Ontario, position the company to scale operations and enhance its reputation as a leading supplier of green hydrogen electrolysis systems, contributing to Canada’s leadership in clean technology and carbon reduction.

Executive/Board ChangesBusiness Operations and Strategy
Next Hydrogen Solutions Inc. Strengthens Board with Renewable Energy Expert
Positive
Mar 3, 2025

Next Hydrogen Solutions Inc. has appointed Adarsh Mehta to its board of directors, filling the vacancy left by Matthew Fairlie’s resignation. Mehta brings over two decades of experience in renewable energy, particularly in wind and solar projects across the Americas, and her expertise is expected to aid Next Hydrogen in scaling its green hydrogen technology and commercialization efforts. This strategic move aligns with the company’s goal to enhance its position as a leader in the green hydrogen sector, which is crucial for the global transition to clean energy.

Executive/Board ChangesBusiness Operations and Strategy
Next Hydrogen Solutions Inc. Strengthens Board with New Appointment
Positive
Mar 3, 2025

Next Hydrogen Solutions Inc. has appointed Adarsh Mehta to its board of directors, following the resignation of Matthew Fairlie. With over two decades of experience in renewable energy, Mehta’s expertise is expected to bolster Next Hydrogen’s efforts to scale its technology and commercialization in the green hydrogen sector, positioning the company as a leader in the clean energy transition.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.