NXT Energy Solutn (SFD) AI Stock Analysis

• Market Cap: C$36.97M
• Dividend Yield: N/A
• Average Volume (3M): 36.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -69.97%
• EPS Growth: -56.55%
• Country: CA
• Employees: 11
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.08
• Shares Outstanding: 79,511,850
• 10 Day Avg. Volume: 22,188
• 30 Day Avg. Volume: 36,048
• PEG Ratio: -0.06
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.60
• 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: 41 Neutral
• Price Target: ―

NXT Energy Solutn's overall stock score is low, primarily due to its severe financial distress, characterized by high leverage, declining revenues, and negative cash flows. While corporate events offer some optimism with new contracts and market expansion, the company's current financial instability and poor valuation metrics pose significant risks.

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 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
644.29K	2.15M	0.00	3.13M	136.57K
	Gross Profit
-3.26M	-1.86M	-2.95M	133.60K	-2.74M
	EBIT
-7.31M	-5.28M	-6.70M	-3.05M	-6.10M
	EBITDA
-6.18M	-3.53M	-4.93M	-1.31M	-4.32M
	Net Income Common Stockholders
-9.08M	-5.45M	-6.77M	-3.12M	-6.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
730.39K	401.71K	263.44K	2.81M	3.03M
	Total Assets
14.03M	15.18M	15.58M	21.58M	24.01M
	Total Debt
12.19M	4.78M	2.18M	2.90M	2.67M
	Net Debt
11.46M	4.37M	1.92M	644.75K	-20.40K
	Total Liabilities
14.29M	6.64M	3.48M	3.43M	3.26M
	Stockholders Equity
-262.66K	8.55M	12.09M	18.16M	20.75M
Cash Flow		Free Cash Flow
-4.00M	-4.86M	-2.93M	-1.10M	-3.45M
	Operating Cash Flow
-3.98M	-4.83M	-2.93M	-1.03M	-3.45M
	Investing Cash Flow
-27.03K	―	550.00K	-274.05K	3.44M
	Financing Cash Flow
4.31M	5.01M	389.22K	875.43K	-34.92K

NXT Energy Solutn Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.46
• 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:SFD, the sentiment is Neutral. The current price of 0.46 is below the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.39, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 23.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	C$152.89M	10.87	59.84%	2.33%	-5.41%	-1.18%
CFW	65 Neutral	C$300.61M	16.53	3.00%	―	-5.50%	-88.55%
STEP	64 Neutral	C$275.99M	151.92	-3.90%	―	-5.98%	-121.37%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%
BRY	46 Neutral	C$5.95M	―	-13.50%	―	-21.66%	-523.55%
SFD	41 Neutral	C$36.97M	―	5.45%	―	-69.97%	-56.55%
HGHAF		$7.57M	0.41	-3.83%	370.28%	―	―

NXT Energy Solutn Corporate Events

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.

Spark’s Take on TSE:SFD Stock

According to Spark, TipRanks’ AI Analyst, TSE:SFD is a Neutral.

NXT Energy Solutions has a low overall stock score due to severe financial distress and poor valuation metrics. While technical indicators are mixed, ongoing operational activities and strategic expansions provide slight optimism for future performance improvement. However, the company’s current financial instability poses significant risks.

To see Spark’s full report on TSE:SFD stock, click here.

NXT Energy Solutions Reports 2024 Financial Results Amidst Strategic Expansion

NXT Energy Solutions reported its 2024 year-end financial results, highlighting significant operational activities and financial challenges. The company completed several SFD® surveys across different regions, secured new contracts, and received industry recognition for its technology. Despite these achievements, NXT faced a net loss of $9.08 million for the year, with a decrease in SFD®-related revenues and increased general and administrative expenses. The company aims to strengthen its market position through strategic partnerships and regional market penetration.

NXT Energy Reports Successful African Survey Completion and Upcoming Projects

NXT Energy Solutions has successfully completed SFD® data acquisition in Africa and plans to deliver interpretation recommendations by Q2 2025. The company is also preparing for SFD® surveys in Southeast Asia and Pakistan, with operations scheduled throughout 2025. These activities are expected to positively impact NXT’s financial performance in 2025, as the company aims to enhance its market presence across Africa, Southeast Asia, and South Asia.