Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 27 Jul 2026
NXT· Technology
Nextpower
Nextpower Inc. struggles with high valuation metrics and an uncertain moat despite decent growth and financial health.
Buffett fit
Partial fit
Owner
50
Durability
70
Management
64
Price
9
Score updated 29 Oct 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of Nextpower, I'd focus on leveraging their technology to maintain competitive pricing and enhance margins.
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Nextpower's durability hinges on its ability to innovate in a competitive market.
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Management has not demonstrated a commitment to shareholder returns, with a yield of only 1.21% and a significant increase in share count.
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The current of 34.6 and an yield of 2.49% indicate that Nextpower is overvalued compared to Buffett's target of 8-10%.
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- The 5-year price target and the return it implies
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 19.8% is in the top quintile for the technology sector (p80: 13.4%).
- 2 of 19.7% exceeds the sector top-quintile cutoff of 18.0%.
- 3Net margin of 16.5% is above the sector's p80 threshold of 15.3%.
- 4Current ratio of 2.45 indicates strong liquidity and ability to meet short-term obligations.
Concerns
5- 1 of 32.39% is significantly below the sector top-quintile cutoff of 60.9%.
- 2High of 34.6 suggests an overvaluation compared to historical norms.
- 3Share count CAGR of 34.02% raises concerns about potential dilution of shareholder value.
- 4 declined by 17.73% YoY, indicating potential operational challenges.
Price history
$82.08+164.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Nextpower Inc. generates revenue through solar tracker solutions, with a TTM revenue of $3.56B. The company offers various products, including the NX Horizon and NX Gemini trackers. Their operational control software, NX Navigator, adds value by optimizing performance for clients. The unit economics appear solid, but the high share count growth raises concerns about dilution.
What other investors would say
The same company, judged by three other documented playbooks.
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