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NXT Energy Solutn J (TSE:SFD)
TSX:SFD
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NXT Energy Solutn
(TSX:SFD)
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Rating:41Neutral
Price Target:
C$0.50
▲(13.64% Upside)
The overall stock score is heavily influenced by the company's poor financial performance, which is the most significant factor. The technical analysis also indicates bearish trends, contributing to a negative outlook. Valuation metrics further reflect the company's financial struggles, resulting in a low overall score.
NXT Energy Solutn (SFD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$48.62M
Dividend YieldN/A
Average Volume (3M)10.01K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth415.42%
EPS Growth55.41%
CountryCA
Employees11
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.08
Shares Outstanding109,250,770
10 Day Avg. Volume4,458
30 Day Avg. Volume10,008
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
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 ConsensusHold
Number of Analyst Covering0
NXT Energy Solutn Business Overview & Revenue Model
Company DescriptionNXT 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 MoneyNXT Energy Solutions makes money primarily through offering its SFD survey services to oil and gas exploration companies. The company's revenue model is based on fees charged for conducting these surveys, which help clients identify promising areas for hydrocarbon exploration without the need for traditional seismic surveys. Key revenue streams include contracts with exploration companies and potential partnerships with larger oil and gas firms seeking to optimize their exploration processes. The uniqueness of the SFD technology, being non-invasive and cost-effective, positions it as a valuable tool for companies looking to reduce exploration risks and costs, thereby contributing significantly to NXT Energy Solutions' earnings.
NXT Energy Solutn Earnings Call Summary
Earnings Call Date:Aug 11, 2025
(Q4-2023)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
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.Q4-2023 Updates
Positive Updates
Turkish SFD Survey Revenue
Recorded SFD-related revenues of approximately $2.15 million for work completed up to December 31, 2023.
Improvement in Net Working Capital
Net working capital improved to negative $1.86 million from approximately negative $3.47 million at September 30, 2023.
Strategic Partnership and Awards
Announced a strategic alliance with Synergy E&P Technologies Ltd. and was a finalist for Best Exploration Technology at the World Oil 2023 Gulf Energy Excellence Awards.
Reduced G&A Expenses
G&A expenses decreased by $316,000 or 8% in 2023 compared to 2022 due to reductions in salaries, professional fees, and business development costs.
Negative Updates
Negative Working Capital
Ended the quarter with negative working capital of $1.86 million despite improvement from previous quarter.
Net Loss
Recorded a net loss of approximately $0.43 million or $0.01 per share for the quarter, and a net loss of $5.45 million or $0.07 per share year-to-date.
Lower Margins
Gross margin on the Turkish contract was lower than expected compared to previous years, attributed to lower volume and fixed costs.
Outdated Public Facing Materials
Concern expressed over outdated company branding and marketing materials, which may impact perception and business development.
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
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.30
Negative
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.35
Negative
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.25
Negative
| 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 | -4.32M |
| 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
Negative
0.44
Price Trends
0.59
Negative
0.65
Negative
0.48
Negative
Market Momentum
-0.04
Positive
35.36
Neutral
27.92
Neutral
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 0.44 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.59, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.36 is Neutral, neither overbought nor oversold. The STOCH value of 27.92 is Neutral, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | C$173.58M | 7.79 | 123.45% | 10.08% | 44.44% | 110.60% | |
| ― | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
| ― | C$398.62M | -19.56 | -5.02% | ― | -6.25% | -129.86% | |
| ― | C$273.99M | 27.79 | 1.53% | ― | -4.63% | -92.13% | |
| ― | $10.41M | 0.39 | -2.30% | ― | -82.87% | ― | |
| ― | C$6.48M | ― | -10.30% | ― | -11.74% | -10.97% | |
| ― | C$48.62M | -7.39 | -39.95% | ― | 415.42% | 55.41% |
* Energy Sector Average
TSE:SFD
NXT Energy Solutn
0.44
0.26
144.44%
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0.24
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3.06
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TSE:HWO
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-28.32%
TSE:STEP
STEP Energy Services
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9.40%
NXT Energy Solutn Corporate Events
Business Operations and StrategyFinancial Disclosures
NXT Energy Solutions to Present at Planet MicroCap Showcase 2025
Positive
Oct 10, 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.
Business Operations and Strategy
NXT Energy Solutions to Showcase at EnerCom Denver 2025
Positive
Aug 13, 2025
NXT Energy Solutions Inc. announced that its CEO, Bruce G. Wilcox, will present at the EnerCom Denver 2025 conference, a significant event for the global oil, gas, and energy sectors. This participation underscores NXT’s active engagement with industry stakeholders and highlights its innovative SFD® survey technology, which could enhance exploration efficiency and effectiveness for its clients.
Business Operations and StrategyFinancial Disclosures
NXT Energy Solutions Reports Strong Q2 2025 Results with Significant Revenue Growth
Positive
Aug 11, 2025
NXT Energy Solutions reported a strong financial performance for the second quarter of 2025, with SFD revenues reaching $14.1 million for the first half of the year. The company achieved a net income of $0.70 million, despite a non-cash charge of $7.74 million due to a fair value adjustment in convertible debentures. Significant improvements in net working capital and cash flow were noted, alongside successful contract completions and new bookings for 2026. The company’s strategic focus on geographical diversification and repeat contracts has bolstered its financial transformation and industry positioning.
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.