Next Hydrogen Solutions Inc (NXH) AI Stock Analysis

• Market Cap: C$13.75M
• Dividend Yield: N/A
• Average Volume (3M): 5.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.13
• Revenue Growth: 46.49%
• EPS Growth: 42.37%
• Country: CA
• Employees: 60
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): <0.01
• Shares Outstanding: 22,918,500
• 10 Day Avg. Volume: 4,327
• 30 Day Avg. Volume: 5,144
• PEG Ratio: -0.05
• Price to Book (P/B): -11.70
• Price to Sales (P/S): 11.77
• P/FCF Ratio: -1.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: C$0.48 ▼(-25.78% Downside)

Next Hydrogen Solutions Inc is currently facing significant financial difficulties, with declining revenues and persistent losses. The technical analysis indicates a bearish trend, and the valuation metrics are unattractive due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Business Model Strength

NXH's focus on electrolysis systems positions it well within the growing clean energy sector, providing a sustainable solution for hydrogen production.

Market Position

By aligning with global decarbonization efforts, NXH is strategically placed to benefit from increasing demand for clean hydrogen solutions.

Recurring Revenue Streams

NXH's recurring revenue from service contracts enhances financial stability and provides a steady income stream beyond initial equipment sales.

Negative Factors

Revenue Decline

The declining revenue trend indicates challenges in market penetration or product adoption, impacting long-term growth potential.

High Leverage

High leverage and negative equity suggest financial instability, limiting NXH's ability to invest in growth and innovation.

Cash Flow Challenges

Persistent cash flow issues could hinder NXH's operational capabilities and its ability to fund future projects, affecting long-term viability.

Next Hydrogen Solutions Inc Business Overview & Revenue Model

Company Description

Next 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 Money

Next Hydrogen Solutions Inc generates revenue through the sale and licensing of its hydrogen production technologies, specifically its electrolyzers. The company earns money by directly selling these systems to industrial clients and energy companies looking to adopt green hydrogen solutions. Additionally, NXH may enter into long-term contracts and partnerships with strategic industry players, providing maintenance, support, and consulting services related to its technologies. These partnerships often enhance its market reach and revenue potential. The increasing global demand for hydrogen as a clean energy source, coupled with supportive government policies and incentives for renewable energy, further contributes to NXH's financial growth.

Next Hydrogen Solutions Inc Financial Statement Overview

Summary

Next Hydrogen Solutions Inc is facing significant financial challenges. The income statement shows 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. Overall, 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	428.10K
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: Positive
• Last Price: 0.64
• 50DMA: Positive
• 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 Positive. The current price of 0.64 is below the 20-day moving average (MA) of 0.68, above the 50-day MA of 0.59, and above the 200-day MA of 0.63, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BLDP	42 Neutral	C$1.14B	―	-18.07%	―	1.18%	62.71%
PYR	41 Neutral	C$41.35M	-3.77	―	―	-6.83%	46.97%
NXH	40 Underperform	C$13.75M	-1.11	―	―	46.49%	42.37%
DYA	38 Underperform	C$63.54M	-4.86	-2067.79%	―	-48.39%	9.17%

Next Hydrogen Solutions Inc Corporate Events

Next Hydrogen Secures Major Investment to Boost Commercial Operations

Next Hydrogen Solutions Inc. has announced a private placement of common shares, aiming to raise between CAD$20 million and CAD$30 million, led by Smoothwater Capital Corporation. This financing is intended to transition Next Hydrogen from a development-stage enterprise to a commercially focused business, enhancing its market position by accelerating sales and manufacturing of its NH150 electrolyzer and completing the development of the NH500 model. The involvement of Smoothwater, which will become the largest shareholder, signifies a strategic shift towards global sales and partnerships, with an emphasis on leveraging existing relationships to achieve a capital-light business model.

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 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.