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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#130
Positioning
Market Dominance
Manufacturing
Electronic Equipment
$3.6B
Daniel Shugar
Our mission is to be the world’s leading energy solutions company enabling the most intelligent, reliable and productive solar power for future generations. Our principal executive offices are located at 6200 Paseo Padre Parkway, Fremont, California.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = NXT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NXT Nextracker Inc. | 69 | 72 | 77 | 83 | 32.1x | 25.5x | 25.7% | 14.5% | 33.0% | 20.8% | 16.5% | 43.1% | 0.0% | 77.0x | $3.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Nextracker Inc. (NXT) receives a "Buy" rating with a composite score of 68.8/100. It ranks #130 out of 7,333 stocks in our coverage universe and carries a 4-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Top-rated overall — multiple factors aligned for strong entry
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for NXT.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 72 | 83 | -11DRAG |
| MOMENTUM | 83 | 90 | -7DRAG |
| VALUATION | 77 | 81 | -4NEUTRAL |
| INVESTMENT | 27 | 27 | 0NEUTRAL |
| STABILITY | 57 | 54 | +3NEUTRAL |
| SHORT INT | 74 | 85 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 25.7% (sector -1.9%)
GM 33% vs sector 44%, OM 21% vs sector 3%
Capital turnover N/A, R&D intensity 2.9%
Rev growth 43%, 5yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Nextracker Inc. (NXT) as a Buy with a composite score of 68.8/100 at a current price of $124.64. The stock scores above average across the majority of our quantitative factors and ranks #130, reflecting a favorable risk-reward profile.
Nextracker Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 68.8/100 places it at rank #130 in our full universe.
The near-term outlook is constructive, with revenue growing at 43% and momentum in the 83th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Medium
Exemplary
Undervalued
Returns on equity of 25.7% exceed cost of capital.
Value factor score of 77 suggests attractive pricing.
Positive momentum indicates institutional accumulation.
Vulnerability to macroeconomic shocks and interest rate volatility.
Nextracker Inc. represents a buy based on multi-factor quantitative performance.
Nextracker Inc. receives a Buy rating with a composite score of 68.8/100 and 4 out of 5 stars, ranking #130 of 7,333 stocks in our universe. NXT displays a favorable combination of factors that positions it above the majority of the market. While not without risk, the quantitative profile supports a constructive outlook.
NXT earns a quality score of 72/100, indicating above-average business quality. The company reports a return on equity of 25.7% (sector avg: -1.9%), gross margins of 33.0% (sector avg: 44.1%), net margins of 16.5% (sector avg: 1.0%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
NXT carries a solid value score of 77/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 32.06x, an EV/EBITDA of 25.53x, a P/B ratio of 8.24x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
Nextracker Inc.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 43.1% vs. a sector average of 6.7% and a return on assets of 14.5% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
NXT shows strong momentum characteristics with a score of 83/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 43.1% year-over-year, while a beta of 1.08 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 57/100, NXT exhibits average financial resilience. Key stability metrics include a beta of 1.08 and a debt-to-equity ratio of 77.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
NXT carries a short interest score of 74/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 77.00x). At $3.6B market cap (mid-cap), Nextracker Inc. offers reasonable institutional liquidity.
Nextracker Inc. is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #130 of 7,333 overall (98th percentile). Key comparisons include ROE of 25.7% exceeding the -1.9% sector median and operating margins of 20.8% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
Quant Factor Profile
Key factor gap
Momentum (83) vs Investment (27) — closing this gap could shift the rating.
EV/EBITDA 123% ABOVE SECTOR MEDIAN
ROE 1452% BELOW SECTOR MEDIAN
Gross Margin 25% BELOW SECTOR MEDIAN

Wilson Sonsini Goodrich & Rosati advised the underwriters in Nextracker Inc.'s upsized initial public offering. Nextracker, a subsidiary of Flex Ltd., priced its IPO at $24 per share for 26.6 million shares, with trading beginning on Nasdaq under "NXT" on February 9, 2023. The underwriters also exercised their option to purchase an additional 3.99 million shares.

Nextracker Inc. (NASDAQ:NXT) is highlighted as a compelling investment opportunity, demonstrating strong fundamental growth, profitability, and financial stability. The company's technical analysis suggests a potential breakout, positioning it as a "growth at a reasonable price" (GARP) stock. This analysis combines detailed financial assessment with technical timing to identify promising entry points for investors.

Nextracker Inc. (NASDAQ:NXT) is presented as a compelling Growth at a Reasonable Price (GARP) opportunity. The company exhibits strong growth across revenue and EPS, supported by excellent profit generation and a robust, debt-free balance sheet. Despite an anticipated slowdown from its rapid past growth, NXT's valuation is considered reasonable compared to the broader market and its industry.

Nextracker Inc. (NASDAQ:NXT) is presented as a strong candidate for a Growth at a Reasonable Price (GARP) investment strategy. The company demonstrates robust historical and projected growth in a high-growth sector, coupled with a valuation that appears reasonable when compared to its industry peers and the broader market. Supporting this outlook are Nextracker's high profitability, evidenced by excellent returns on capital and operating margins, and a strong financial position with no outstanding debt.

Kahn Swick & Foti, LLC (KSF) and former Louisiana Attorney General Charles C. Foti, Jr. are reminding investors of Nextracker Inc. (NasdaqGS: NXT) that the deadline to file lead plaintiff applications in a securities class action lawsuit is February 25, 2025. The lawsuit alleges that Nextracker failed to disclose material information between February 1, 2024, and August 1, 2024, leading to a significant drop in share price after the company announced its first fiscal quarter 2025 results. Investors who purchased shares during this period and incurred losses exceeding $100,000 are encouraged to contact KSF to discuss their legal rights.
Above 50MA
37.18%
Net New Highs
+51081