Nextpower Inc. Class A Common Stock
NXT
$113.08
-6.06%
Nextpower Inc. is a technology company operating in the consumer electronics industry, specifically providing intelligent solar tracker and software solutions. It is a global leader in utility-scale solar optimization, with a core advantage in its integrated technology that enhances plant performance across multiple continents.…
NXT
Nextpower Inc. Class A Common Stock
$113.08
Investment Opinion: Should I buy NXT Today?
Based on a comprehensive synthesis of the data, the objective assessment for NXT is a 'Buy' rating for growth-oriented investors with high risk tolerance. The company demonstrates exceptional fundamental strength with 33.85% revenue growth, 31.27% ROE, and zero long-term debt. Analyst sentiment is overwhelmingly positive with 8 Buy ratings out of 10 recent actions, and technical momentum remains strong with 51.9% gains over six months. However, this recommendation carries the caveat of high volatility and premium valuation that requires careful position sizing.
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NXT 12-Month Price Forecast
The fundamental picture is exceptionally strong with high profitability and no debt, but the extreme volatility (beta 2.424) and premium forward valuation create a balanced risk-reward profile. The base case suggests moderate upside to the $125-$140 range if execution remains solid.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Nextpower Inc. Class A Common Stock's 12-month outlook, with a consensus price target around $147.00 and implied upside of +30.0% versus the current price.
Average Target
$147.00
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$90 - $147
Analyst target range
Wall Street analyst sentiment is overwhelmingly positive. Based on recent institutional ratings, there are 10 analyst actions listed, with 8 being Buy or Overweight ratings, 1 Hold, and 1 upgrade from Sector Weight to Overweight. A consensus of 11 analysts provides an average EPS estimate of $7.21 for the coming period, with a high estimate of $8.27 and a low of $6.81. Average revenue is estimated at $5.74 billion. This indicates strong analyst confidence and expectations for continued growth.
Bulls vs Bears: NXT Investment Factors
NXT presents a compelling growth story with exceptional fundamentals and strong analyst support, but carries substantial volatility risk. The stock's dramatic appreciation has embedded high growth expectations into its valuation, making it sensitive to any execution missteps.
Bullish
- Strong Revenue Growth: 33.85% YoY revenue growth demonstrates robust demand and market expansion.
- Exceptional Profitability Metrics: High ROE of 31.27% and net margin of 17.21% indicate efficient operations.
- Zero Long-Term Debt: Debt-to-equity ratio of 0 provides significant financial flexibility and low risk.
- Overwhelming Analyst Optimism: 8 out of 10 recent analyst actions are Buy/Overweight ratings.
Bearish
- Extreme Stock Volatility: Beta of 2.424 and 23.27% max drawdown indicate high price swings.
- Sequential Earnings Decline: Net income dropped from $147M to $131M quarter-over-quarter.
- Premium Forward Valuation: Forward P/E of 25.01 prices in aggressive future growth expectations.
- High Short Interest: Short ratio of 3.69 suggests significant bearish sentiment from traders.
NXT Technical Analysis
The stock has demonstrated a strong overall uptrend over the past six months, with the price rising from $79.36 on October 2, 2025, to $120.55 on March 31, 2026, representing a gain of 51.9%. This performance significantly outpaces the broader market, as indicated by a 6-month relative strength of 54.72 against the S&P 500. In the short term, the stock has been volatile but positive. Over the last month, the price increased by 14.70%, and over the last three months, it gained 38.39%, again strongly outperforming the market which declined over both periods. The price action shows significant swings, including a sharp rally in late January 2026 followed by a pullback and subsequent recovery. The current price of $120.55 is near the upper end of its 52-week range of $36.06 to $131.72, trading approximately 8.5% below the yearly high. The stock exhibits high volatility, as evidenced by a beta of 2.424, and the provided data shows a maximum drawdown of -23.27% over the period.
Beta
2.42
2.42x market volatility
Max Drawdown
-23.3%
Largest decline past year
52-Week Range
$36-$132
Price range past year
Annual Return
+159.7%
Cumulative gain past year
| Period | NXT Return | S&P 500 |
|---|---|---|
| 1m | +11.8% | -3.6% |
| 3m | +21.9% | -4.0% |
| 6m | +46.6% | -2.0% |
| 1y | +159.7% | +16.2% |
| ytd | +21.9% | -3.8% |
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NXT Fundamental Analysis
Revenue growth has been robust, with year-over-year growth of 33.85% for the quarter ending December 31, 2025. However, sequential quarterly revenue has shown some fluctuation, declining slightly from $905 million in Q2 2025 to $909 million in Q3 2025. Profitability remains healthy, with a net margin of 17.21% and an operating margin of 21.60% for the latest quarter, though net income of $131 million was down from $147 million in the prior quarter. The company's financial health appears solid, with a strong current ratio of 2.09 and notably a debt-to-equity ratio of 0, indicating no long-term debt. Cash flow generation is positive, with free cash flow over the trailing twelve months reported at $589 million and operating cash flow of $125 million for the latest quarter. Operational efficiency is strong, as reflected in a high return on equity (ROE) of 31.27% and a return on assets (ROA) of 13.61%. The company's asset turnover and gross margin of 34.09% indicate effective use of assets and solid pricing power within its operations.
Quarterly Revenue
$909352000.0B
2025-12
Revenue YoY Growth
+0.33%
YoY Comparison
Gross Margin
+0.31%
Latest Quarter
Free Cash Flow
$589260000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is NXT Overvalued?
Given that the company is profitable with positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 11.88, while the forward P/E is 25.01 based on estimated EPS. The Price-to-Sales (P/S) ratio is 2.04, and the Enterprise Value-to-Sales (EV/Sales) is 4.72. Peer comparison data (industry averages) is not available in the provided inputs. Therefore, a standalone assessment shows the valuation using earnings appears reasonable based on the trailing P/E, though the forward P/E suggests the market is pricing in significant future earnings growth, which is supported by high analyst EPS estimates.
PE
11.9x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 5x~61x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
8.1x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk for NXT is its extreme volatility, with a beta of 2.424 indicating it moves more than twice as much as the broader market. This is evidenced by the 23.27% maximum drawdown during the analyzed period. The high short ratio of 3.69 suggests persistent skepticism from some market participants, potentially leading to sharp declines on negative news.
Fundamentally, while revenue growth remains strong at 33.85% YoY, the sequential decline in net income from $147M to $131M raises questions about margin sustainability. The forward P/E of 25.01 reflects aggressive growth expectations; any disappointment in quarterly results or guidance could trigger significant multiple compression.
Operationally, the company operates in the competitive solar technology sector where policy changes, raw material costs, and technological shifts could impact performance. However, the zero debt balance sheet and strong cash flow generation ($589M TTM FCF) provide a substantial buffer against operational challenges.
FAQ
The primary risks are extreme volatility (beta 2.424), high short interest (short ratio 3.69), and premium valuation (forward P/E 25.01). Fundamentally, sequential net income declined from $147M to $131M last quarter, raising margin concerns. The stock's 23.27% maximum drawdown demonstrates its susceptibility to sharp corrections during market turbulence.
The 12-month outlook suggests a base case target range of $125-$140 (50% probability), representing modest upside from current $120.55. The bull case targets $145-$165 (35% probability) if NXT exceeds analyst EPS estimates of $7.21. The bear case risks decline to $85-$105 (15% probability) if growth disappoints. Analysts project average EPS of $7.21 on $5.74B revenue.
NXT appears fairly valued to slightly overvalued based on forward-looking metrics. The trailing P/E of 11.88 seems reasonable, but the forward P/E of 25.01 prices in aggressive future growth. Compared to its 52-week range of $36.06 to $131.72, the current $120.55 price sits near the upper end, suggesting limited margin of safety despite strong fundamentals.
NXT is a good buy for growth-oriented investors with high risk tolerance. The company shows exceptional fundamentals including 33.85% revenue growth, 31.27% return on equity, and zero long-term debt. However, the stock's high beta of 2.424 means it experiences twice the market's volatility, requiring careful position sizing and risk management.
NXT is better suited for long-term investors who can withstand volatility. The strong fundamental growth story—33.85% revenue growth, zero debt, high ROE—supports multi-year holding. Short-term trading is challenging due to the stock's high beta of 2.424 and 23.27% maximum drawdown. Patient investors may benefit from the global solar adoption trend.