NXG — financial distress indicators
Financial-health summary
NXG's reported numbers place it in the 'Watch' financial-health band (distress score 37/100). The main indicators are revenue collapse, material debt with no ebitda and massive shareholder dilution. Independently, the market-implied (Merton) default probability is 0.0%.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Revenue changed -37% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Debt is 30% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
Share count up +60% in a year.
Survival financing: repeated equity raises at depressed prices.
Operating cash flow negative in 2 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- NXG NextGen Infrastructure Income Fund (NYSE: NXG) Announces DistributionsYahoo Finance · 2026-09-01
- NexgenRx Announces Second Quarter Results (With Substantial Increases in Revenue, EBITDA and Financial Position) and Declaration of DividendYahoo Finance · 2026-08-20
- NXG NextGen Infrastructure Income Fund (NYSE: NXG) Announces 11.1% Distribution IncreaseYahoo Finance · 2026-06-02
- NXG NextGen Infrastructure Income Fund (NYSE: NXG) Announces the Preliminary Results of its Rights OfferingYahoo Finance · 2026-05-01
- NexgenRx Announces Declaration of DivdendYahoo Finance · 2026-04-17
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do NXG's financial-health indicators show?
As of 2026-10-08, NXG's public financial data places it in the 'Watch' band with a distress score of 37/100, driven by revenue collapse, material debt with no ebitda and massive shareholder dilution. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is NXG's financial distress score?
37/100 ('Watch'). Merton distance-to-default 8.78 σ (model default probability 0.0%).
What works in NXG's favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Unclassified companies with distress indicators
- CNEY (CNEY)Very weak 100/100
- EPOW (EPOW)Very weak 100/100
- GIBO (GIBO)Very weak 100/100
- GNS (GNS)Very weak 100/100
- HKPD (HKPD)Very weak 100/100
- HUBC (HUBC)Very weak 100/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.