Nextracker (NXT) reported a sharp 58.9% average annual earnings growth over the past five years, though growth moderated to 19.3% in the latest year. Net profit margin edged down slightly to 17.1% from last year’s 17.2%. With revenue forecast to grow at 10.2% per year, just ahead of the US market, while earnings growth is projected at 7.8%, the company trades at a Price-to-Earnings ratio of 25.2x. This is lower than its peers, but with a share price of $98.28 that sits above its estimated fair value of $88.82. Investors are taking note of the company’s strong track record, consistent growth, and high-quality earnings, though expectations have been tempered by shorter-term earnings growth and a premium share price.
See our full analysis for Nextracker.
Now, let’s see how these headline numbers stack up next to the narratives widely followed in the market and within the Simply Wall St community.
See what the community is saying about Nextracker
-
Nextracker’s record backlog now exceeds $4.5 billion, providing a strong forward-looking buffer as strategic R&D expansion and global partnerships continue to underpin growth potential.
-
Analysts’ consensus view strongly supports the idea that the company’s investment in new R&D facilities across the U.S., Brazil, and India, and high-profile partnerships such as the UC Berkeley collaboration, will reinforce its innovation lead and extend revenue visibility.
-
Sustained demand and a localized supply chain, highlighted by the $4.5 billion backlog, directly counter worries about cyclical slowdowns and offer competitive advantages in retaining market share.
-
The future annual revenue growth forecast of 11.8 percent, just ahead of the broader U.S. market, supports the view that Nextracker’s innovation pipeline is a mainstay for future financial performance rather than a temporary catalyst.
-
What stands out in these results is how closely the consensus links innovation investments to future revenue growth and why analyst confidence persists even as some metrics edge lower.
📊 Read the full Nextracker Consensus Narrative.
-
Net profit margin declined slightly to 17.1 percent this year from 17.2 percent, with consensus expectations predicting a further decrease to 15.3 percent over the next three years as cost and pricing pressures mount.
-
Consensus narrative notes that this expected margin squeeze, despite innovation and revenue momentum, demonstrates how competitive pricing and geographic concentration in the U.S. could test the company’s ability to sustain high profitability.
-
U.S. market dominance exposes Nextracker to downside if policy or demand shifts, particularly because of the anticipated contraction in profit margin and international pricing pressure.
-
Analysts also note that ongoing project complexity and significant R&D spending could challenge net earnings growth unless revenue keeps close pace with new costs.
-