NextDecade Story

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NextDecade Cash and Equivalents is comparatively stable at the moment as compared to the past year. NextDecade reported Cash and Equivalents of 15.74 Million in 2019. Current Liabilities is likely to gain to about 23.2 M in 2020, whereas Earnings before Tax are likely to drop (38.7 M) in 2020. As many millenniums are excited about energy space, it is only fair to review NextDecade. Why are we still confident in hope for a quick recovery. In this post, I will also go over some essential variables affecting NextDecade's products, and show how it may impact the firm outlook for active traders this year.
Published over three weeks ago
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NextDecade (NASDAQ:NEXT) continues to gain
NextDecade holds a performance score of 6 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of -2.6387, which conveys a somewhat significant risk relative to the market. Let's try to break down what NextDecade's beta means in this case. As returns on the market increase, returns on owning NextDecade are expected to decrease by larger amounts. On the other hand, during market turmoil, NextDecade is expected to outperform it. Although it is vital to follow NextDecade price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. Our philosophy towards estimating future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if NextDecade expected return of 1.23 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use NextDecade treynor ratio, expected short fall, as well as the relationship between the Expected Short fall and day median price to analyze future returns on NextDecade.

How important is NextDecade's Liquidity

NextDecade financial leverage refers to using borrowed capital as a funding source to finance NextDecade ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NextDecade financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between NextDecade's total debt and its cash.

How NextDecade utilizes its cash?

To perform a cash flow analysis of NextDecade, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash NextDecade is receiving and how much cash it distributes out in a given period. The NextDecade cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. NextDecade Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. NextDecade reported Net Cash Flow from Operations of (40.7 Million) in 2019

Is NextDecade valued wisely by the market?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NextDecade has an asset utilization ratio of 60.57 percent. This implies that the company is making $0.61 for each dollar of assets. An increasing asset utilization means that NextDecade is more efficient with each dollar of assets it utilizes for everyday operations.
 2017 2018 2019 2020 (projected)
Current Ratio5.116.363.665.34
Book Value per Share1.020.780.820.83

Are NextDecade technical ratios showing a throwback?

The semi variance is down to 51.23 as of today. NextDecade is displaying above-average volatility over the selected time horizon. Investors should scrutinize NextDecade independently to ensure intended market timing strategies are aligned with expectations about NextDecade volatility.

The Bottom Line

Whereas some firms within the oil & gas e&p industry are still a little expensive, even after the recent corrections, NextDecade may offer a potential longer-term growth to private investors. To sum up, as of the 27th of September 2020, our primary 30 days Buy-Hold-Sell recommendation on the firm is Strong Sell. However, we believe NextDecade is currently fairly valued with below average probability of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of NextDecade. Please refer to our Terms of Use for any information regarding our disclosure principles.

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