Array Technologies, Inc. (ARRY) vs Nextpower Inc. (NXT)

Array Technologies, Inc. and Nextpower Inc. are both Solar companies. Nextpower Inc. is the larger, with a market value of $12.2B against $613.0M — 19.9× the size. Array Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Nextpower Inc. trades at 20.3×. Nextpower Inc. grew revenue faster over the last twelve months: 17.0% against 1.18%. Nextpower Inc. has the higher net margin (16.4% vs −12.5%) and the higher return on invested capital (32.7% vs −25.6%). Across the 20 metrics below, Nextpower Inc. leads on 12 and Array Technologies, Inc. on 8.

Valuation

Metric ARRY NXT Solar median
P/E n/m 20.31 10.93
P/S 0.52 3.36 0.54
P/B n/m 4.77 1.44
Price to free cash flow 4.60 22.22 9.91
EV/EBITDA 9.40 15.10 9.90
EV/Sales 0.83 3.06 0.74
Earnings yield (24.32%) 4.92% 0.00%
Free cash flow yield 21.73% 4.50% 0.00%

Profitability

Metric ARRY NXT Solar median
Gross margin 24.27% 33.45% 31.92%
Operating margin (5.13%) 19.34% (9.70%)
Net margin (12.48%) 16.36% (8.48%)
Free cash flow margin 11.37% 15.12% (2.95%)
Return on equity 108.38% 27.22% 5.34%
Return on assets (9.62%) 15.53% (5.36%)
Return on invested capital (25.60%) 32.66% (5.27%)

Growth

Metric ARRY NXT Solar median
Revenue growth (TTM) 1.18% 16.97% 16.97%
EPS growth (last fiscal year) 62.56% 10.66% —
Revenue growth, 5-year CAGR 8.03% 24.38% 14.00%
Net income growth, 5-year CAGR 0.00% 36.42% 0.00%

Health

Metric ARRY NXT Solar median
Debt to equity (3.25) 0.00 0.09
Current ratio 2.20 2.69 1.33
Net debt to EBITDA 3.36 (1.50) 0.03

Dividend

Metric ARRY NXT Solar median
Dividend yield — — —
Payout ratio 0.00 — 0.00

Size

Metric ARRY NXT Solar median
Market cap 612.95m 12.19b 43.46m

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