NasdaqCM:NEXT

Stock Analysis Report

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Executive Summary

NextDecade Corporation, a liquefied natural gas (LNG) development company, engages in the development activities related to the liquefaction and sale of LNG. More Details


Snowflake Analysis

Excellent balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has NextDecade's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEXT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.8%

NEXT

1.7%

US Oil and Gas

-1.5%

US Market


1 Year Return

-31.0%

NEXT

-45.5%

US Oil and Gas

12.9%

US Market

Return vs Industry: NEXT exceeded the US Oil and Gas industry which returned -45.5% over the past year.

Return vs Market: NEXT underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

NEXTIndustryMarket
7 Day5.8%1.7%-1.5%
30 Day165.9%-7.4%-1.8%
90 Day52.9%-16.0%6.6%
1 Year-31.0%-31.0%-42.2%-45.5%15.4%12.9%
3 Year-63.4%-63.4%-43.0%-50.5%39.6%30.2%
5 Yearn/a-32.4%-45.6%93.4%71.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NextDecade undervalued compared to its fair value and its price relative to the market?

5.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NEXT ($3.67) is trading above our estimate of fair value ($1.27)

Significantly Below Fair Value: NEXT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEXT is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: NEXT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEXT is overvalued based on its PB Ratio (5.6x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is NextDecade forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-50.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEXT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NEXT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NEXT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if NEXT's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NEXT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NEXT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NextDecade performed over the past 5 years?

-28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEXT is currently unprofitable.

Growing Profit Margin: NEXT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEXT is unprofitable, and losses have increased over the past 5 years at a rate of 28.5% per year.

Accelerating Growth: Unable to compare NEXT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEXT is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-39.4%).


Return on Equity

High ROE: NEXT has a negative Return on Equity (-12.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is NextDecade's financial position?


Financial Position Analysis

Short Term Liabilities: NEXT's short term assets ($38.5M) exceed its short term liabilities ($2.6M).

Long Term Liabilities: NEXT's short term assets ($38.5M) exceed its long term liabilities ($19.4M).


Debt to Equity History and Analysis

Debt Level: NEXT is debt free.

Reducing Debt: NEXT has not had any debt for past 5 years.


Balance Sheet


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: NEXT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NEXT has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of 28.3% each year.


Next Steps

Dividend

What is NextDecade current dividend yield, its reliability and sustainability?

15.49%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if NEXT'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 NEXT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Matt Schatzman (54 yo)

2.58yrs

Tenure

US$1,470,153

Compensation

Mr. Matthew K. Schatzman, also known as Matt, serves as Chairman of the Board at NextDecade Corporation since June 04, 2019. He served as the President of NextDecade Corporation since September 18, 2017 un ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD1.47M) is about average for companies of similar size in the US market ($USD1.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Schatzman
Chairman & CEO2.58yrsUS$1.47m0.95%
$ 4.2m
Benjamin Atkins
Chief Financial Officer4.83yrsUS$398.24k0.10%
$ 442.4k
Krysta De Lima
General Counsel & Corporate Secretary5yrsUS$491.88k0.072%
$ 318.0k
Eric Garcia
VP & Chief Accounting Officer3.08yrsno data0.015%
$ 66.4k
Stephan Huisman
Technical Directorno datano datano data
Raquel Couri
Vice President of Human Resources & Administration2.33yrsno datano data
Patrick Hughes
Senior Vice President of Strategy & Business Development1.33yrsno datano data
James MacTaggart
Senior Vice President of LNG Marketing – Asia & Middle East2.25yrsno datano data
Ping Lee
Senior Vice President of LNG Marketing for China & Southeast Asia2.25yrsno datano data
Daniel Werner
Senior Vice President of LNG Marketing – Europe & America1.67yrsno datano data
Ivan van der Walt
Senior Vice President of Engineering & Constructionno datano data0.051%
$ 227.6k
Kevin Beasley
Senior Vice President of Gas Supply & Commercial Operations1.33yrsno datano data

2.3yrs

Average Tenure

51yo

Average Age

Experienced Management: NEXT's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Schatzman
Chairman & CEO2.58yrsUS$1.47m0.95%
$ 4.2m
Frank Chapman
Non-Executive Independent Director0.83yrUS$33.33k0.075%
$ 331.1k
William Vrattos
Lead Independent Director0.42yrno datano data
Khalifa Abdulla Al Romaithi
Independent Director0.75yrno datano data
Louis Wells
Independent Director3.17yrsUS$128.16k0.067%
$ 297.4k
Taewon Jun
Independent Director1.25yrsno datano data
Brian Belke
Independent Director3.17yrsno data0.032%
$ 142.1k
Avinash Kripalani
Independent Director3.17yrsno datano data
Thanasi Skafidas
Independent Director0.42yrno datano data

1.3yrs

Average Tenure

42yo

Average Age

Experienced Board: NEXT's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.1%.


Top Shareholders

Company Information

NextDecade Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NextDecade Corporation
  • Ticker: NEXT
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$442.802m
  • Shares outstanding: 120.65m
  • Website: https://www.next-decade.com

Number of Employees


Location

  • NextDecade Corporation
  • Wells Fargo Plaza
  • Suite 3900
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEXTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 2017

Biography

NextDecade Corporation, a liquefied natural gas (LNG) development company, engages in the development activities related to the liquefaction and sale of LNG. It focusses on the development activities of Ri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:13
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.