TSX:SFD

Stock Analysis Report

NXT Energy Solutions

Executive Summary

NXT Energy Solutions Inc. provides airborne and gravity based geophysical survey services for the oil and gas exploration and production companies through its proprietary stress field detection (SFD) survey system worldwide.


Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has NXT Energy Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

57.5%

SFD

-6.4%

CA Energy Services

3.7%

CA Market


1 Year Return

-46.6%

SFD

-74.2%

CA Energy Services

-23.7%

CA Market

Return vs Industry: SFD exceeded the Canadian Energy Services industry which returned -74.2% over the past year.

Return vs Market: SFD underperformed the Canadian Market which returned -23.7% over the past year.


Shareholder returns

SFDIndustryMarket
7 Day57.5%-6.4%3.7%
30 Day-25.0%-55.1%-19.7%
90 Dayn/a-63.2%-24.3%
1 Year-46.6%-46.6%-72.7%-74.2%-21.2%-23.7%
3 Year-75.0%-75.0%-81.0%-82.9%-13.3%-21.4%
5 Year-82.4%-82.4%-83.5%-85.8%-0.8%-15.5%

Price Volatility Vs. Market

How volatile is NXT Energy Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NXT Energy Solutions undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFD (CA$0.32) is trading below our estimate of fair value (CA$2.34)

Significantly Below Fair Value: SFD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFD is good value based on its PE Ratio (5.1x) compared to the Energy Services industry average (9x).

PE vs Market: SFD is good value based on its PE Ratio (5.1x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SFD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SFD is overvalued based on its PB Ratio (0.7x) compared to the CA Energy Services industry average (0.2x).


Next Steps

Future Growth

How is NXT Energy Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.5%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NXT Energy Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has NXT Energy Solutions performed over the past 5 years?

-12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFD has high quality earnings.

Growing Profit Margin: SFD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SFD has become profitable over the past 5 years, growing earnings by -12.9% per year.

Accelerating Growth: SFD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SFD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (18.1%).


Return on Equity

High ROE: SFD's Return on Equity (13.9%) is considered low.


Next Steps

Financial Health

How is NXT Energy Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: SFD's short term assets (CA$11.2M) exceed its short term liabilities (CA$1.3M).

Long Term Liabilities: SFD's short term assets (CA$11.2M) exceed its long term liabilities (CA$2.9M).


Debt to Equity History and Analysis

Debt Level: SFD is debt free.

Reducing Debt: SFD had no debt 5 years ago.


Balance Sheet

Inventory Level: SFD has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SFD's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SFD is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SFD is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is NXT Energy Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SFD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SFD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SFD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFD's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

George Liszicasz (65yo)

24.25s

Tenure

CA$323,394

Compensation

Mr. George Liszicasz has been the Chairman and Chief Executive Officer at NXT Energy Solutions, Inc., since January 1996 and has been its President since July 2002. Mr. Liszicasz served as the President of ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD228.15K) is above average for companies of similar size in the Canadian market ($USD158.74K).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Liszicasz
Chairman24.25yrsCA$323.39k24.56% CA$5.1m
Charles Selby
Lead Independent Director4.25yrsCA$50.17k0.63% CA$131.8k
Eugene Woychyshyn
VP of Finance1.33yrsCA$77.47k0.072% CA$14.9k
Andrew Steedman
Special Advisor3.67yrsCA$252.93kno data

3.0yrs

Average Tenure

62yo

Average Age

Experienced Management: SFD's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Liszicasz
Chairman24.25yrsCA$323.39k24.56% CA$5.1m
Charles Selby
Lead Independent Director4.25yrsCA$50.17k0.63% CA$131.8k
Bruce Wilcox
Independent Director4.83yrsno data0.57% CA$117.9k
Thomas Valentine
Independent Director12.42yrsno datano data
Frank Ingriselli
Director0.58yrno datano data
John Tilson
Independent Director5.17yrsno data5.16% CA$1.1m
George Allen
Member of Geosciences Advisory Board5.25yrsno datano data
George Iusco
Member of Geosciences Advisory Board11.83yrsno datano data
Roes Budiman
Member of Geosciences Advisory Board11.83yrsno datano data
Cleveland Jones
Member of Geosciences Advisory Boardno datano datano data

5.3yrs

Average Tenure

65yo

Average Age

Experienced Board: SFD's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SFD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

Company Information

NXT Energy Solutions Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NXT Energy Solutions Inc.
  • Ticker: SFD
  • Exchange: TSX
  • Founded: 1994
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$14.678m
  • Listing Market Cap: US$20.806m
  • Shares outstanding: 64.41m
  • Website: https://www.nxtenergy.com

Number of Employees


Location

  • NXT Energy Solutions Inc.
  • 3320 17th Avenue SW
  • Suite 302
  • Calgary
  • Alberta
  • T3E 0B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSFD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1995
SFDTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1995

Biography

NXT Energy Solutions Inc. provides airborne and gravity based geophysical survey services for the oil and gas exploration and production companies through its proprietary stress field detection (SFD) survey system worldwide. Its SFD remote-sensing survey system offers information on areas conducive to fluid entrapment in the sedimentary column. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was incorporated in 1994 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 09:13
End of Day Share Price2020/03/31 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.