Buy or Sell Nextpower Stock?

March 11th, 2026 by Trefis Team
NXT: Nextpower logo
NXT
Nextpower

Nextpower (NXT) stock has jumped 5.2% during the past day, and is currently trading at $113.73. We believe there is nothing to fear in NXT stock given its overall Very Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced.

Below is our assessment:

  CONCLUSION
What you pay:
Valuation High
What you get:
Growth Very Strong
Profitability Moderate
Financial Stability Very Strong
Downturn Resilience N/A
Operating Performance Very Strong
 
Stock Opinion Fairly Priced

Ask yourself – Is holding NXT stock risky? Of course it is. High Quality Portfolio mitigates that risk.

Let’s get into details of each of the assessed factors but before that, for quick background: With $17 Bil in market cap, Nextpower is a leading energy solutions provider delivering intelligent, reliable, and productive solar power for future generations.

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[1] Valuation Looks High

  NXT S&P 500
Price-to-Sales Ratio 4.7 3.2
Price-to-Earnings Ratio 28.3 24.6
Price-to-Free Cash Flow Ratio 28.6 20.7

This table highlights how NXT is valued vs broader market. For more details see: NXT Valuation Ratios

[2] Growth Is Very Strong

  • Nextpower has seen its top line grow at an average rate of 25.5% over the last 3 years
  • Its revenues have grown 30% from $2.8 Bil to $3.6 Bil in the last 12 months
  • Also, its quarterly revenues grew 33.9% to $909 Mil in the most recent quarter from $679 Mil a year ago.

  NXT S&P 500
3-Year Average 25.5% 5.7%
Latest Twelve Months* 30.0% 6.6%
Most Recent Quarter (YoY)* 33.9% 7.2%

This table highlights how NXT is growing vs broader market. For more details see: NXT Revenue Comparison

[3] Profitability Appears Moderate

  • NXT last 12 month operating income was $739 Mil representing operating margin of 20.5%
  • With cash flow margin of 17.5%, it generated nearly $629 Mil in operating cash flow over this period
  • For the same period, NXT generated nearly $592 Mil in net income, suggesting net margin of about 16.4%

  NXT S&P 500
Current Operating Margin 20.5% 18.8%
Current OCF Margin 17.5% 20.9%
Current Net Income Margin 16.4% 12.8%

This table highlights how NXT profitability vs broader market. For more details see: NXT Operating Income Comparison

[4] Financial Stability Looks Very Strong

  • NXT Debt was $0.0 at the end of the most recent quarter, while its current Market Cap is $17 Bil. This implies Debt-to-Equity Ratio of 0.0%
  • NXT Cash (including cash equivalents) makes up $953 Mil of $3.8 Bil in total Assets. This yields a Cash-to-Assets Ratio of 25.1%

  NXT S&P 500
Current Debt-to-Equity Ratio 0.0% 21.0%
Current Cash-to-Assets Ratio 25.1% 7.3%

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.