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Nextpower Inc
(NASDAQ:NXT)
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Rating:68Neutral
Price Target:
$93.00
▲(9.66% Upside)
Action:Downgraded
Date:08/29/26
The score is driven primarily by strong financial performance (rapid scaling, solid margins, low leverage, and healthy TTM free cash flow), partially offset by weak technicals (price below key moving averages with bearish momentum). Valuation is moderate at a 22.5 P/E with no dividend support, while corporate events add a positive, but secondary, tailwind via the announced acquisition and supportive governance outcomes.
Positive Factors
Revenue Growth and Profitability
Rapid revenue expansion alongside robust gross and net margins indicates strong product demand and operating leverage. Sustained profitability gives Nextpower internal funding capacity and supports continued scaling across the solar equipment market.
Negative Factors
Historical Balance-Sheet Volatility
Past negative equity shows that the capital structure has experienced meaningful stress and may be sensitive to solar-cycle or execution pressures. Although current leverage is conservative, this history warrants caution about long-term balance-sheet resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
Rapid revenue expansion alongside robust gross and net margins indicates strong product demand and operating leverage. Sustained profitability gives Nextpower internal funding capacity and supports continued scaling across the solar equipment market.
Read all positive factors
Nextpower Inc (NXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.34B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)20.8
Beta (1Y)1.19
Revenue Growth16.97%
EPS Growth6.22%
CountryUS
Employees1,993
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)3.98
Shares Outstanding151,729,520
10 Day Avg. Volume1,626,831
30 Day Avg. Volume2,286,502
Financial Highlights & Ratios
PEG Ratio2.64
Price to Book (P/B)7.64
Price to Sales (P/S)5.01
P/FCF Ratio34.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$141.11Price Target Upside66.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)4.68
Revenue Forecast (FY)$4.32B
Nextpower Inc Business Overview & Revenue Model
Company Description
Nextpower, Inc. engages in the provision of integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects. Its products enable solar panels in utility-scale power plants to follow th...
Nextpower Inc Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong full-year performance driven by 20% revenue growth, record backlog (> $5.25B), robust adjusted EBITDA ($854M), excellent cash generation ($514M FCF) and a raised FY27 guidance range. Management highlighted meaningful product and platform traction (eBOS, foundations, trackers, TrueCapture) and strategic expansion into power conversion with a near-term acquisition and planned $130M of investment. Near-term headwinds include a Q4 sequential revenue dip, elevated freight/logistics costs (partly from Middle East disruptions), initial margin pressure from platform investments, and regulatory approval risk on the acquisition. On balance, operational and financial strengths, backlog, guidance raise and strategic investments outweigh the manageable near-term challenges, supporting a constructive outlook.Positive Updates
Strong Full-Year Revenue Growth
Full fiscal year revenue of approximately $3.56 billion, representing 20% year-over-year growth and finishing well above initial plan.
Negative Updates
Q4 Sequential Revenue Decline and JV Accounting Effect
Q4 revenue was $881 million, down 3% sequentially. The first quarter including the new Middle East JV was not consolidated, reducing reported revenue by ~300 basis points.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Full-Year Revenue Growth
Full fiscal year revenue of approximately $3.56 billion, representing 20% year-over-year growth and finishing well above initial plan.
Read all positive updates
Company Guidance
Management guided FY27 revenue of $3.8–$4.1 billion and adjusted EBITDA of $825–$900 million, supported by a record backlog (> $5.25 billion) and FY26 momentum (FY26 revenue ~$3.56B, +20% YoY; FY26 adjusted EBITDA $854M; Q4 revenue $881M; Q4 adj. EBITDA $202M, 23% margin). They expect U.S. concentration in the high‑70% range (rest of world low‑20s), >40% growth in non‑tracker revenue (bringing non‑tracker to ~15% of total), Q1 sequential revenue growth in the low single digits, gross margins in the low‑30s, and adjusted EBITDA margins in the low‑20% range. Near‑term operating expenses are expected at 10.5–11.5% of revenue (returning to a long‑term 8–9%), capex $75–$100M, and adjusted free cash flow $450–$500M; balance sheet highlights include ~$1.1B cash, no debt and an investment‑grade rating. Management also plans to invest ~ $130M to accelerate the power‑conversion business (≈ $50M incremental COGS/OpEx plus up to $80M in the asset purchase agreement).Nextpower Inc Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.63B | 3.56B | 2.96B | 2.50B | 1.90B | 1.46B |
| Gross Profit | 1.21B | 1.16B | 998.16M | 691.64M | 286.97M | 147.03M |
| EBITDA | 748.26M | 747.05M | 674.52M | 626.18M | 174.55M | 90.00M |
| Net Income | 594.05M | 585.88M | 509.17M | 306.24M | 118.89M | 50.91M |
Balance Sheet | ||||||
| Total Assets | 4.26B | 4.07B | 3.19B | 2.52B | 1.42B | 1.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.21B | 1.09B | 766.10M | 474.05M | 130.01M | 29.07M |
| Total Debt | 0.00 | 52.86M | 34.11M | 169.02M | 150.55M | 4.50M |
| Total Liabilities | 1.71B | 1.74B | 1.56B | 1.53B | 934.82M | 516.16M |
| Stockholders Equity | 2.56B | 2.33B | 1.63B | 961.01M | -3.08B | 501.13M |
Cash Flow | ||||||
| Free Cash Flow | 550.72M | 511.64M | 621.87M | 422.31M | 104.49M | -153.03M |
| Operating Cash Flow | 600.17M | 556.45M | 655.79M | 428.97M | 107.67M | -147.11M |
| Investing Cash Flow | -106.24M | -182.41M | -186.10M | -6.66M | -3.16M | -5.75M |
| Financing Cash Flow | -23.44M | -45.17M | -177.65M | -78.27M | -3.57M | -8.66M |
Nextpower Inc Technical Analysis
Negative
84.81
Price Trends
97.30
Negative
111.62
Negative
108.39
Negative
Market Momentum
-4.72
Negative
35.54
Neutral
35.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXT, the sentiment is Negative. The current price of 84.81 is below the 20-day moving average (MA) of 87.95, below the 50-day MA of 97.30, and below the 200-day MA of 108.39, indicating a bearish trend. The MACD of -4.72 indicates Negative momentum. The RSI at 35.54 is Neutral, neither overbought nor oversold. The STOCH value of 35.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXT.
Nextpower Inc Risk Analysis
Nextpower Inc disclosed 56 risk factors in its most recent earnings report. Nextpower Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nextpower Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $12.34B | 20.83 | 26.32% | ― | 16.97% | 6.22% | |
62 Neutral | $4.87B | 35.64 | 12.28% | ― | -10.41% | -22.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $1.20B | 39.10 | 5.29% | ― | 46.88% | 50.24% | |
51 Neutral | $2.26B | -7.69 | -62.50% | ― | 37.91% | 84.96% | |
50 Neutral | $700.74M | -4.72 | -47.02% | ― | 1.18% | 44.68% | |
46 Neutral | $884.69M | -4.64 | -6.62% | ― | -15.70% | -2559.44% |
* Technology Sector Average
NXT
Nextpower Inc
82.89
16.19
24.27%
CSIQ
Canadian Solar
12.76
1.87
17.17%
ENPH
Enphase Energy
36.35
-1.28
-3.40%
SEDG
SolarEdge Technologies
34.68
5.71
19.71%
ARRY
Array Technologies
4.62
-3.05
-39.77%
SHLS
Shoals Technologies Group
7.30
0.42
6.10%
Nextpower Inc Corporate Events
Executive/Board ChangesShareholder Meetings
Nextpower Inc Shareholders Back Governance and Leadership Changes
Positive
Aug 19, 2026
On August 18, 2026, Nextpower Inc. held its annual meeting via virtual webcast, with 93.97% of Class A shares represented, and stockholders elected four Class I directors to serve until the 2029 annual meeting. Shareholders also ratified Deloitte ...
Business Operations and StrategyM&A Transactions
Nextpower Acquires Zimmermann PV to Expand Solar Portfolio
Positive
Jun 22, 2026
On June 21, 2026, a subsidiary of Nextpower LLC agreed to acquire all outstanding interests in Germany’s Zimmermann PV-Steel Group for up to €330 million in cash and stock, relying on a private offering exemption under U.S. securities ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.