NXT Energy Solutn (SFD) AI Stock Analysis

• Market Cap: C$43.70M
• Dividend Yield: N/A
• Average Volume (3M): 10.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 418.77%
• EPS Growth: 56.71%
• Country: CA
• Employees: 11
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.02
• Shares Outstanding: 109,250,770
• 10 Day Avg. Volume: 4,458
• 30 Day Avg. Volume: 10,008
• PEG Ratio: -0.02
• Price to Book (P/B): -44.64
• Price to Sales (P/S): 18.20
• P/FCF Ratio: -2.93
• 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: 39 Underperform
• Price Target: C$0.28 ▼(-5.67% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, which is reflected in declining revenues, persistent losses, insolvency, and liquidity issues. Technical analysis also indicates a strong bearish trend, with the stock trading below all major moving averages and technical indicators showing oversold conditions. The negative P/E ratio and lack of dividend yield further contribute to a weak valuation score.

Positive Factors

Proprietary Technology

The company's unique SFD® technology provides a competitive edge in the energy sector by offering non-invasive exploration solutions, potentially increasing client efficiency and success rates.

Revenue Growth Potential

Significant revenue growth indicates strong demand for NXT's services, suggesting potential for continued expansion and market penetration.

Market Reach

Collaborations with major energy firms enhance NXT's market reach, potentially leading to increased revenue streams and a stronger industry position.

Negative Factors

Financial Instability

High leverage and negative equity indicate financial distress, limiting the company's ability to invest in growth and manage economic downturns.

Negative Cash Flow

Persistent negative cash flow suggests liquidity issues, hindering the company's ability to sustain operations and invest in future growth.

Declining Revenue

Significant revenue decline over recent years reflects challenges in maintaining market share and operational efficiency, impacting long-term viability.

NXT Energy Solutn Business Overview & Revenue Model

Company Description

NXT Energy Solutions Inc. (SFD) is a Canadian company specializing in providing innovative solutions for the energy sector, particularly in the areas of oil and gas exploration. The company is known for its proprietary SFD® technology, which utilizes a unique and non-invasive method to identify and delineate potential hydrocarbon reserves, thereby optimizing exploration efforts for its clients. NXT Energy Solutions operates primarily in the energy sector, offering services that enhance the efficiency and success rates of exploration activities throughout North America and internationally.

How the Company Makes Money

NXT Energy Solutions generates revenue primarily through the provision of its SFD® technology and related services to energy companies engaged in oil and gas exploration. The company earns fees for conducting surveys and analyses that help clients identify potential drilling locations, significantly reducing the risk and costs associated with exploration. Key revenue streams include project contracts with exploration and production companies, consulting services, and technology licensing agreements. Additionally, significant partnerships with major energy firms and collaborations in various regions contribute to the company's earnings by expanding its market reach and enhancing its service offerings.

NXT Energy Solutn Financial Statement Overview

Summary

NXT Energy Solutn is facing severe financial challenges across all major financial statements. The income statement highlights declining revenues and persistent losses, the balance sheet reveals insolvency and high leverage, and the cash flow statement indicates ongoing liquidity issues. The company needs to address its operational inefficiencies and improve its financial stability to avoid further financial deterioration.

Income Statement

The company has experienced a significant decline in revenue over the past few years, from $11.98 million in 2019 to $644,294 in 2024. Gross profit margins have been negative, indicating that the company is unable to cover its cost of goods sold. Net profit margins are also deeply negative, reflecting substantial losses. The EBIT and EBITDA margins are both negative, indicating operating inefficiencies. Overall, the income statement reflects poor financial performance with declining revenues and persistent losses.

Balance Sheet

The balance sheet shows high leverage, with a negative stockholders' equity of $262,664 in 2024, indicating the company is insolvent. The debt-to-equity ratio is not meaningful due to negative equity. The equity ratio has deteriorated from 87% in 2019 to negative in 2024, signifying financial instability and increased reliance on debt. Overall, the balance sheet indicates financial distress and a weak capital structure.

Cash Flow

Cash flow from operations has been consistently negative, showing the company is unable to generate positive cash flow from its core operations. Free cash flow is also negative, further indicating liquidity issues. The operating cash flow to net income ratio is skewed due to negative figures, reflecting the company's inability to convert its losses into cash flow. Overall, the cash flow statement portrays significant liquidity challenges and cash burn.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.16M	644.29K	2.15M	0.00	3.13M	136.57K
Gross Profit	7.60M	-3.26M	-1.86M	-1.77M	133.60K	-2.74M
EBITDA	4.73M	-6.44M	-3.53M	-4.93M	-1.31M	-4.25M
Net Income	-3.58M	-9.08M	-5.45M	-6.77M	-3.12M	-6.03M
Balance Sheet
Total Assets	19.90M	14.03M	15.18M	15.58M	21.58M	24.01M
Cash, Cash Equivalents and Short-Term Investments	2.15M	730.39K	401.71K	263.44K	2.81M	3.03M
Total Debt	4.32M	12.19M	4.78M	2.18M	2.90M	2.09M
Total Liabilities	5.87M	14.29M	6.64M	3.48M	3.43M	3.26M
Stockholders Equity	14.03M	-262.66K	8.55M	12.09M	18.16M	20.75M
Cash Flow
Free Cash Flow	-945.51K	-4.00M	-4.86M	-2.93M	-1.10M	-3.45M
Operating Cash Flow	-904.21K	-3.98M	-4.83M	-2.93M	-1.03M	-3.45M
Investing Cash Flow	-186.83K	-27.03K	-32.32K	550.00K	-274.05K	3.44M
Financing Cash Flow	745.10K	4.31M	5.01M	389.22K	875.43K	-173.62K

NXT Energy Solutn Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SFD, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.44, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 28.11 is Positive, neither overbought nor oversold. The STOCH value of 15.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SFD.

NXT Energy Solutn Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSD	68 Neutral	C$149.73M	6.75	123.45%	16.29%	44.44%	110.60%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	61 Neutral	C$269.69M	27.35	3.20%	―	-8.13%	-28.00%
HWO	60 Neutral	$10.54M	0.40	-0.80%	―	-75.46%	-100.66%
STEP	58 Neutral	C$399.37M	-19.59	-1.94%	―	-9.19%	-119.27%
BRY	46 Neutral	C$6.21M	―	-8.25%	―	-11.17%	6.19%
SFD	39 Underperform	C$43.70M	-6.64	-51.99%	―	418.77%	56.71%

NXT Energy Solutn Corporate Events

NXT Energy Solutions Reports Strong Revenue Growth in 2025

NXT Energy Solutions reported a significant increase in revenue for the first nine months of 2025, reaching $14.21 million compared to $0.60 million in 2024, driven by successful projects in Africa and Southeast Asia. Despite a net loss of $1.08 million due to a non-cash accounting charge, the company’s operational performance improved, with a potential profit of $4.75 million excluding the charge, highlighting a positive commercial trajectory.

The most recent analyst rating on (TSE:SFD) stock is a Sell with a C$0.50 price target. To see the full list of analyst forecasts on NXT Energy Solutn stock, see the TSE:SFD Stock Forecast page.

NXT Energy Solutions to Present at Planet MicroCap Showcase 2025

NXT Energy Solutions announced its participation in the Planet MicroCap Showcase: TORONTO 2025, where CEO Bruce G. Wilcox will present the company’s achievements, including a notable revenue milestone of $14.12 million by mid-2025, the highest in nine years. This event is an opportunity for NXT to highlight its investment potential and strengthen its market presence, potentially attracting new investors and stakeholders interested in its innovative exploration technology.

The most recent analyst rating on (TSE:SFD) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on NXT Energy Solutn stock, see the TSE:SFD Stock Forecast page.