Nextpower Inc. (NXT)
Valuation Overview•Is Nextpower Inc. Overvalued or Undervalued?
Market price has outpaced base-case intrinsic cash flows, pricing in significant future growth optimism.
High-quality fundamentals with a strong composite quality score of 79/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
NXT demonstrates strong business quality with robust profitability and healthy margins (highlighted by a massive 49.0% ROIC). This is backed by a fortress balance sheet, holding significant net cash ($1.1B) and minimal debt risk.
The company is driving exceptional top-line expansion (23.2% 3Y CAGR) paired with highly explosive earnings growth (689.6% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 19.7% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $880.5M | +20.3% | +23.2% | +24.4% | — | |
| EBITDA | $153.6M | — | +61.4% | — | — | |
| Net Income | $150.6M | +15.1% | +70.2% | — | — | |
| EPS (Diluted) | $0.97 | +10.7% | +689.6% | +3.5% | — | |
| Free Cash Flow | $153.6M | -17.7% | +69.8% | +41.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 32.4% | 31.3% | 23.8% | 20.7% |
| Operating Margin | 19.7% | 21.6% | 15.6% | 13.0% |
| Net Margin | 16.5% | 15.3% | 11.1% | 9.5% |
| FCF Margin | 14.5% | 17.4% | 9.5% | 9.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.92 | $1.05 | +13.8% | ||
| Q1'26 | $0.93 | $1.10 | +18.3% | ||
| Q4'25 | $1.06 | $1.19 | +12.3% | ||
| Q3'25 | $1.03 | $1.16 | +12.6% | ||
| Q2'25 | $0.96 | $1.29 | +34.0% | ||
| Q1'25 | $0.59 | $1.03 | +74.6% | ||
| Q4'24 | $0.61 | $0.97 | +59.0% | ||
| Q3'24 | $0.65 | $0.93 | +43.1% |
Total return is +113.8% (1Y), outperforming the benchmark by +88.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +35.7% | +26.4% | — |
| 1Y | +113.8% | +88.8% | — |
| 3YCAGR | +47.1% | +26.5% | — |
| 5YCAGR | +32.3% | +19.3% | — |
| 10YCAGR | +15.0% | +1.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Nextpower Inc. (NXT) valuation, health, and returns.
Nextpower Inc. is estimated to be overvalued under our discounted cash flow framework. overvalued (implying -46.8% downside from DCF intrinsic value of $66.95)
Nextpower Inc. has multiple valuation anchors: DCF Intrinsic Value: $66.95 | Wall Street Analyst Target: $151.61 (implying +20.4% upside). A convergence of these signals offers higher conviction.
Nextpower Inc. displays good financial health with a composite quality score of 79/100, supported by a Altman Z-Score of 8.3 (safe zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 49.0%.
Nextpower Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Nextpower Inc.'s current growth trajectory is Decelerating. The company achieved +20.3% 1Y revenue growth and +10.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +23.2%.
Wall Street consensus is Buy based on 29 analysts, beating EPS expectations in 100% of recent quarters with a 12-quarter streak. The consensus price target represents a +20.4% change from current levels.
Investment risks for Nextpower Inc. include: -28.4% 1-year max drawdown, high beta (2.29x market volatility). Volatility risk is characterized by a beta of 2.29x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.