Is the business good?
How good a business is NXT?
Nextpower Inc. earns 44% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
44%
Return on invested capital · cost of capital 9.0% · 35 points above what the capital costs: growth creates value
- Operating margin
- 20%
Operating margin · Solar median 4.8% · 12 months to Q4 2026
- Cash conversion
- 0.88×
Cash conversion · 1.22× a year ago · some of the reported profit has not turned into cash yet
- R&D as % of revenue
- 3.4%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 4.5% |
| FY2023 | 8.9% |
| FY2024 | 23% |
| FY2025 | 22% |
| FY2026 | 20% |
Details›
- Gross margin12 months to Q4 2026
- 33%
- Operating margin12 months to Q4 2026
- 20%
- Net margin12 months to Q4 2026
- 16%
- Free cash flow margin
- 14%
- R&D as % of revenue
- 3.4%
- Revenue, trailing twelve months
- $3.56B
- Free cash flow, trailing twelve months
- $514M
- Net income, trailing twelve months
- $586M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 44%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.