NXTNextpower Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.0×) and margins widening, but 3 of 9 health tests passed.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 26% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NXT?
Nextpower Inc. earns 41% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 32 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Solar median 4.8% · 12 months to Q1 2027
- Cash conversion
- 1.04×
Cash conversion · 1.16× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +2.8%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 4.5% |
| FY2023 | 8.9% |
| FY2024 | 23% |
| FY2025 | 22% |
| FY2026 | 20% |
Details›
- Gross margin12 months to Q1 2027
- 33%
- Operating margin12 months to Q1 2027
- 19%
- Net margin12 months to Q1 2027
- 16%
- Free cash flow margin
- 15%
- R&D as % of revenue
- 4.0%
- Revenue, trailing twelve months
- $3.63B
- Free cash flow, trailing twelve months
- $549M
- Net income, trailing twelve months
- $594M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 41%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.