NXT Energy Solutn (SFD) AI Stock Analysis

• Market Cap: C$71.91M
• Dividend Yield: N/A
• Average Volume (3M): 33.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: 355.14%
• EPS Growth: N/A
• Country: CA
• Employees: 11
• Sector: Energy
• Sector Strength: 57
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.08
• Shares Outstanding: 108,952,644
• 10 Day Avg. Volume: 44,710
• 30 Day Avg. Volume: 33,351
• PEG Ratio: 1.18
• Price to Book (P/B): 6.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.77
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: C$0.50 ▼(-28.57%Downside)

The most significant factor is the poor financial performance, heavily impacting the overall score. However, technical analysis and positive corporate events provide some optimism, indicating potential for recovery if strategic initiatives are successful. Valuation remains a concern due to ongoing losses.

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-scale sensors to detect gravity field perturbations in an airborne survey method which can be used onshore and offshore to remotely identify traps and reservoirs with hydrocarbon and geothermal exploration potential. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.

How the Company Makes Money

NXT Energy Solutions makes money by offering its SFD technology services to oil and gas exploration companies. The company generates revenue by conducting aerial surveys using its SFD technology, which helps clients identify promising locations for drilling. These surveys are typically conducted under contracts with exploration companies, who pay NXT for the data and insights provided. Additionally, NXT may engage in partnerships or collaborations with other companies in the energy sector to expand the application and reach of its technology, contributing to its earnings.

NXT Energy Solutn Financial Statement Overview

Summary

NXT Energy Solutions 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	12.51M	644.29K	2.15M	0.00	3.13M	136.57K
Gross Profit	6.96M	-3.26M	-1.86M	-1.77M	133.60K	-2.74M
EBITDA	4.33M	-6.44M	-3.53M	-4.93M	-1.31M	-4.32M
Net Income	394.00K	-9.08M	-5.45M	-6.77M	-3.12M	-6.03M
Balance Sheet
Total Assets	21.74M	14.03M	15.18M	15.58M	21.58M	24.01M
Cash, Cash Equivalents and Short-Term Investments	2.03M	730.39K	401.71K	263.44K	2.81M	3.03M
Total Debt	12.67M	12.19M	4.78M	2.18M	2.90M	2.09M
Total Liabilities	14.11M	14.29M	6.64M	3.48M	3.43M	3.26M
Stockholders Equity	7.63M	-262.66K	8.55M	12.09M	18.16M	20.75M
Cash Flow
Free Cash Flow	-1.94M	-4.00M	-4.86M	-2.93M	-1.10M	-3.45M
Operating Cash Flow	-1.91M	-3.98M	-4.83M	-2.93M	-1.03M	-3.45M
Investing Cash Flow	-248.06K	-27.03K	-32.32K	550.00K	-274.05K	3.44M
Financing Cash Flow	3.42M	4.31M	5.01M	389.22K	875.43K	-173.62K

NXT Energy Solutn Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.7 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.51, and above the 200-day MA of 0.29, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 81.48 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSD	68 Neutral	C$180.69M	12.86	59.84%	1.97%	-5.41%	-1.18%
Sector *	68 Neutral	$15.33B	10.06	6.34%	5.18%	4.06%	-67.04%
STEP	66 Neutral	C$337.00M	151.92	-3.90%	―	-5.98%	-121.37%
CFW	65 Neutral	C$293.74M	16.15	3.00%	―	-5.50%	-88.55%
SFD	56 Neutral	C$71.91M	―	5.45%	―	355.14%	―
BRY	46 Neutral	C$7.14M	―	-13.50%	―	-21.66%	-523.55%
HGHAF		$7.88M	0.43	-3.83%	359.53%	―	―

NXT Energy Solutn Corporate Events

Mork Capital Increases Stake in NXT Energy Solutions Through Debenture Conversion

NXT Energy Solutions Inc. has announced the conversion of convertible debentures into common shares by Mork Capital, significantly increasing Mork Capital’s stake in the company. This conversion results in Mork Capital now owning approximately 28% of NXT’s outstanding common shares, up from 16%, indicating a strategic investment move that could impact NXT’s market dynamics and shareholder structure.

NXT Energy Solutions CEO Outlines Strategic Growth and Operational Enhancements

NXT Energy Solutions Inc. shared remarks from CEO Bruce G. Wilcox at their annual shareholder meeting, highlighting the company’s strategic focus on increasing value per share through a full operational calendar and building a pipeline for 2026. The company is enhancing its interpretation methods and expanding its sensor inventory to improve survey reporting and client accessibility. Despite past financial challenges, NXT has improved its balance sheet and is cautious about expecting quarterly revenue growth, though it aims for annual progress. The company is considering expanding resources as it grows, ensuring financial viability before making such decisions.

NXT Energy Solutions Inc. Reports Shareholder Meeting Outcomes

NXT Energy Solutions Inc. announced the results of its Annual Meeting of Shareholders, where key resolutions were approved, including the election of eight directors, the appointment of MNP LLP as auditors, and the approval of the Amended Stock Option Plan and Deferred Share Unit Plan. These approvals are expected to strengthen the company’s governance and operational framework, potentially enhancing its market position and stakeholder confidence.

NXT Energy Solutions Strengthens Alliance with Ataraxia Through Debenture Conversion

NXT Energy Solutions Inc. announced that Ataraxia Capital has converted its debentures into 13,540,208 common shares, making Ataraxia a significant shareholder with approximately 14.6% ownership. This strategic move strengthens NXT’s alliance with Ataraxia, potentially enhancing the company’s market position and operational capabilities.

NXT Energy Solutions Reports Strong Q1 2025 Financial Results

NXT Energy Solutions Inc. reported strong financial results for the first quarter of 2025, driven by increased demand for its SFD® surveys. The company achieved significant revenue growth, recording $12.46 million in SFD®-related revenues compared to $0.60 million in the same quarter of the previous year. This resulted in a net income of $7.68 million, a substantial improvement from the net loss of $1.79 million in Q1 2024. The company has secured survey bookings for the remainder of 2025 and is working on contracts for 2026, indicating a positive outlook for future financial performance.

NXT Energy Secures New SFD Survey Contract in Africa

NXT Energy Solutions Inc. has announced a new contract with Synergy Exploration and Production Technologies Limited to conduct an SFD® survey for an oil and gas exploration company in Africa. This contract signifies NXT’s continued collaboration with Synergy and marks a return to the African market, with data acquisition set to begin in the third quarter of 2025. The survey results will be delivered in the fourth quarter, potentially enhancing NXT’s market presence and offering strategic insights for stakeholders involved in the region’s energy exploration.