No-moat Nextracker continued its trend of strong financial results and released fiscal 2025 guidance in line with our estimates. We plan to update our model in conjunction with the 10-K filing in the coming weeks, but at an initial glance, we see no reason to change our $37 fair value estimate. We reiterate our nonconsensus view that long-term margins will moderate from recent levels.
Nextracker’s best-in-class independent row tracker system, aligns its optimized energy yields with developer’s long-term project economics.
Cost-sensitive EPCs, which account for 75% of Nextracker’s customers, exhibit limited stickiness with tracker companies.
|
Metric
|
NXT
|
SEDG
|
SHLS
|
|---|---|---|---|
Price/Earnings (Normalized) | 29.98 | 13.27 | 9.89 |
Price/Book Value | 5.92 | 1.36 | 2.09 |
Price/Sales | 2.53 | 1.36 | 2.44 |
Price/Cash Flow | 12.65 | — | 8.39 |
|
Metric
|
NXT
|
SEDG
|
SHLS
|
|---|---|---|---|
Quick Ratio | 1.43 | 1.85 | 1.78 |
Current Ratio | 1.87 | 3.70 | 2.62 |
Interest Coverage | — | 12.42 | 2.87 |
|
Metric
|
NXT
|
SEDG
|
SHLS
|
|---|---|---|---|
Return on Assets (Normalized) | 21.56% | −0.77% | 11.03% |
Return on Equity (Normalized) | — | −1.44% | 17.17% |
Return on Invested Capital (Normalized) | 56.89% | −1.05% | 14.75% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
FSLR
| First Solar Inc | Nxymhjd | Hqwv | $20.5 Bil | |
ENPH
| Enphase Energy Inc | Mbbmfkxt | Cffrc | $15.7 Bil | |
XNYIF
| Xinyi Solar Holdings Ltd | — | Rvgsbf | $6.5 Bil | |
XISHY
| Xinyi Solar Holdings Ltd ADR | — | Bcmddk | $6.5 Bil | |
GCPEF
| GCL Technology Holdings Ltd | — | Gbv | $4.9 Bil | |
SEDG
| SolarEdge Technologies Inc | Prvrsstr | Mczy | $2.9 Bil | |
RUN
| Sunrun Inc | Ztpzxkr | Fjbjy | $2.7 Bil | |
SHLS
| Shoals Technologies Group Inc Ordinary Shares - Class A | Dzyckwvyr | Wxb | $1.2 Bil | |
SPWR
| SunPower Corp | Cqv | Spbbh | $545.7 Mil |
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