NXT Energy Solutn J (TSE:SFD)
TSX:SFD
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NXT Energy Solutn
(TSX:SFD)
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Rating:52Neutral
Price Target:
C$0.42
▲(16.39% Upside)
Action:ReiteratedDate:04/03/26
The score is driven primarily by improving financial performance (positive operating margins, positive free cash flow, and manageable leverage) but held back by continued net losses and historically volatile results. Technicals are neutral-to-mixed with the stock still below its 200-day average, and valuation is penalized by the negative P/E and lack of dividend data.
Positive Factors
Operating Margin Turnaround
The reported TTM operating turnaround—with very high gross margins and positive operating/EBITDA margins alongside revenue growth—indicates the SFD service has strong unit economics and pricing power. High gross margin implies proprietary tech with low incremental costs, supporting durable operating profitability if volumes hold.
Negative Factors
Persistent Net Losses
Despite operating improvements, significant negative net margins point to material non-operating costs or legacy charges. Persistent bottom-line losses can force future financing, dilute shareholders, constrain capital allocation, and impede sustainable shareholder returns unless non-operating drains are resolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Margin Turnaround
The reported TTM operating turnaround—with very high gross margins and positive operating/EBITDA margins alongside revenue growth—indicates the SFD service has strong unit economics and pricing power. High gross margin implies proprietary tech with low incremental costs, supporting durable operating profitability if volumes hold.
Read all positive factors
NXT Energy Solutn (SFD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$44.20M
Dividend YieldN/A
Average Volume (3M)10.01K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth2437.86%
EPS Growth89.74%
CountryCA
Employees11
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding119,461,426
10 Day Avg. Volume4,458
30 Day Avg. Volume10,008
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)2.27
Price to Sales (P/S)2.06
P/FCF Ratio31.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NXT Energy Solutn Business Overview & Revenue Model
Company Description
NXT Energy Solutions Inc., a technology company, provides services to the oil and gas industry through its proprietary stress field detection (SFD) technology worldwide. Its SFD technology, a remote sensing airborne survey system utilizes quantum-...
How the Company Makes Money
NXT Energy Solutions makes money primarily by commercializing its proprietary SFD® technology through contracts with exploration customers. Revenue is generated when clients engage NXT to conduct SFD surveys over specific geographic areas, typical...
NXT Energy Solutn Earnings Call Summary
Earnings Call Date:Mar 27, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflected both positive developments, such as revenue generation from the Turkish SFD Survey and strategic alliances, as well as challenges including ongoing net losses, negative working capital, and lower than expected margins. Improvements in G&A expenses and working capital suggest cost management is improving, but there are concerns regarding the company's public image and ability to capture growth opportunities. The sentiment leans towards balanced given the mix of progress and challenges.Positive Updates
Turkish SFD Survey Revenue
Recorded SFD-related revenues of approximately $2.15 million for work completed up to December 31, 2023.
Negative Updates
Negative Working Capital
Ended the quarter with negative working capital of $1.86 million despite improvement from previous quarter.
Read all updates
Q4-2023 Updates
Positive
Negative
Turkish SFD Survey Revenue
Recorded SFD-related revenues of approximately $2.15 million for work completed up to December 31, 2023.
Read all positive updates
Company Guidance
During the NXT Energy Solutions Q4 2023 earnings call, the company provided several key financial metrics and forward-looking statements. Revenue from the Turkish SFD survey was approximately $2.15 million for work completed by December 31, 2023, while cash stood at $0.4 million and net working capital was a negative $1.86 million, improving from a negative $3.47 million in the previous quarter. NXT recorded a net loss of approximately $0.43 million, or $0.01 per share, with 78 million weighted average common shares outstanding, a slight improvement from the previous year's loss of $1.47 million. General and administrative expenses decreased by 5% in the quarter compared to 2022. The company also highlighted its strategic initiatives for 2024, including a focus on diversifying its client base and geographic reach, improving cost efficiency, and enhancing shareholder value through increased revenues.NXT Energy Solutn Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.35M | 644.29K | 2.15M | 0.00 | 3.13M |
| Gross Profit | 8.67M | -3.26M | -1.86M | -1.77M | 133.60K |
| EBITDA | 617.32K | -6.44M | -3.53M | -4.93M | -1.31M |
| Net Income | -2.32M | -9.08M | -5.45M | -6.77M | -3.12M |
Balance Sheet | |||||
| Total Assets | 19.31M | 14.03M | 15.18M | 15.58M | 21.58M |
| Cash, Cash Equivalents and Short-Term Investments | 3.92M | 730.39K | 401.71K | 263.44K | 2.81M |
| Total Debt | 2.15M | 12.19M | 4.78M | 2.18M | 2.90M |
| Total Liabilities | 4.45M | 14.29M | 6.64M | 3.48M | 3.43M |
| Stockholders Equity | 14.86M | -262.66K | 8.55M | 12.09M | 18.16M |
Cash Flow | |||||
| Free Cash Flow | 1.07M | -4.00M | -4.86M | -2.93M | -1.10M |
| Operating Cash Flow | 1.16M | -3.98M | -4.83M | -2.93M | -1.03M |
| Investing Cash Flow | -439.11K | -27.03K | -32.32K | 550.00K | -274.05K |
| Financing Cash Flow | 2.21M | 4.31M | 5.01M | 389.22K | 875.43K |
NXT Energy Solutn Technical Analysis
Positive
0.36
Price Trends
0.36
Positive
0.34
Positive
0.48
Negative
Market Momentum
<0.01
Negative
57.49
Neutral
93.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SFD, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.36, and below the 200-day MA of 0.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 93.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SFD.
NXT Energy Solutn Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$184.60M | -36.93 | 110.53% | 14.94% | -19.22% | -40.35% | |
71 Outperform | C$527.32M | 21.33 | 4.57% | ― | -11.45% | 184.51% | |
66 Neutral | C$112.80M | 42.07 | 4.11% | ― | 4.93% | -47.34% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | C$2.78B | 26.86 | 14.09% | 0.43% | 68.23% | 10.87% | |
54 Neutral | C$10.41M | -16.66 | -0.93% | ― | -58.25% | -98.77% | |
52 Neutral | C$44.20M | -6.82 | -45.78% | ― | 2437.86% | 89.74% |
* Energy Sector Average
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NXT Energy Solutn
0.37
0.06
19.35%
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NXT Energy Solutn Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
NXT Energy Solutions Marks Inflection Year With Surging Revenue and Full Control of SFD Technology
Positive
Apr 1, 2026
NXT Energy Solutions reported a dramatic turnaround in 2025, with revenue surging 2,437% to $16.4 million on the back of three SFD surveys for two new clients and a repeat customer, and significant improvements in operating cash flow, net working ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.