OTCPK:NSFD.F

Stock Analysis Report

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Executive Summary

NXT Energy Solutions Inc., a technology company, provides geophysical survey services to the upstream oil and gas industry through its proprietary gravity-based 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: NSFD.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.2%

NSFD.F

16.6%

US Energy Services

3.8%

US Market


1 Year Return

36.7%

NSFD.F

-43.6%

US Energy Services

9.7%

US Market

Return vs Industry: NSFD.F exceeded the US Energy Services industry which returned -43.6% over the past year.

Return vs Market: NSFD.F exceeded the US Market which returned 9.7% over the past year.


Shareholder returns

NSFD.FIndustryMarket
7 Day21.2%16.6%3.8%
30 Day55.8%34.7%11.4%
90 Day33.3%-5.9%6.8%
1 Year36.7%36.7%-41.8%-43.6%12.1%9.7%
3 Year-50.0%-50.0%-62.8%-68.0%36.2%27.2%
5 Year-80.2%-80.2%-68.6%-74.4%63.7%45.4%

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

No news available

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: NSFD.F ($0.4) is trading below our estimate of fair value ($3.37)

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


Price To Earnings Ratio

PE vs Industry: NSFD.F is good value based on its PE Ratio (8.6x) compared to the Energy Services industry average (14.4x).

PE vs Market: NSFD.F is good value based on its PE Ratio (8.6x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NSFD.F is overvalued based on its PB Ratio (1.4x) compared to the US Energy Services industry average (0.6x).


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?

63.9%

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

  • Examine whether NXT Energy Solutions is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access NXT Energy Solutions's filings and announcements here.
  • Explore growth companies in the Energy industry.

Past Performance

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

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NSFD.F has high quality earnings.

Growing Profit Margin: NSFD.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NSFD.F has become profitable over the past 5 years, growing earnings by -1.5% per year.

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

Earnings vs Industry: NSFD.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-58.7%).


Return on Equity

High ROE: NSFD.F's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is NXT Energy Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: NSFD.F's short term assets (CA$7.5M) exceed its short term liabilities (CA$1.4M).

Long Term Liabilities: NSFD.F's short term assets (CA$7.5M) exceed its long term liabilities (CA$2.5M).


Debt to Equity History and Analysis

Debt Level: NSFD.F is debt free.

Reducing Debt: NSFD.F had no debt 5 years ago.

Debt Coverage: NSFD.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NSFD.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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 NSFD.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NSFD.F'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 NSFD.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NSFD.F'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 NSFD.F'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?

3.8yrs

Average management tenure


CEO

George Liszicasz (65yo)

24.42yrs

Tenure

CA$320,945

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 ($USD239.40K) is below average for companies of similar size in the US market ($USD571.43K).

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


Leadership Team

NamePositionTenureCompensationOwnership
George Liszicasz
Chairman24.42yrsCA$320.95k23.32% CA$6.0m
Charles Selby
Lead Independent Director4.42yrsCA$30.00k0.63% CA$163.3k
Eugene Woychyshyn
VP of Finance1.5yrsCA$175.39k0.072% CA$18.5k
Thomas Valentine
Corporate Secretary & Independent Director12.58yrsCA$30.00kno data
Rashid Tippu
Chief Geophysicistno datano datano data
Enrique Hung
Director of GeoScienceno datano datano data
Andrew Steedman
Special Advisor3.83yrsCA$252.93kno data

3.8yrs

Average Tenure

60yo

Average Age

Experienced Management: NSFD.F's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Liszicasz
Chairman24.42yrsCA$320.95k23.32% CA$6.0m
Charles Selby
Lead Independent Director4.42yrsCA$30.00k0.63% CA$163.3k
Thomas Valentine
Corporate Secretary & Independent Director12.58yrsCA$30.00kno data
Bruce Wilcox
Independent Director5yrsCA$35.00k0.57% CA$146.0k
Frank Ingriselli
Independent Director0.75yrCA$9.75kno data
John Tilson
Independent Director5.33yrsCA$30.00k5.84% CA$1.5m
George Allen
Member of Geosciences Advisory Board5.42yrsno datano data
George Iusco
Member of Geosciences Advisory Board12yrsno datano data
Cleveland Jones
Member of Geosciences Advisory Boardno datano datano data

5.4yrs

Average Tenure

65yo

Average Age

Experienced Board: NSFD.F's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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: NSFD.F
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$25.763m
  • 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., a technology company, provides geophysical survey services to the upstream oil and gas industry through its proprietary gravity-based 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 founded 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 Analysis2020/06/06 04:36
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.