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DXN Ltd. (AU:DXN)
ASX:DXN
Australian Market

DXN Ltd. (DXN) AI Stock Analysis

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AU

DXN Ltd.

(Sydney:DXN)

Rating:50Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
DXN Ltd. faces significant financial challenges with negative profitability and high leverage, which weigh heavily on its overall score. While technical indicators show some positive momentum, the negative P/E ratio and lack of dividends highlight ongoing financial instability. Investors should be cautious due to these risks.

DXN Ltd. (DXN) vs. iShares MSCI Australia ETF (EWA)

DXN Ltd. Business Overview & Revenue Model

Company DescriptionDXN Limited designs, manufactures, owns, and operates data centers and related infrastructure in Australia. The company's data centers provide space, power, cooling, and physical security for clients to house their computer servers, and related storage and networking equipment. It also engineers, constructs, and commissions data center solutions for edge data centers and telecommunications applications, such as satellite, radio centers, and cable landing stations. In addition, the company provides connectivity solutions comprising cloud interconnection, fiber cross-connects, internet services, and cloud span services; and engineering as a service, project management, data center management, and maintenance and engineering services. The company was incorporated in 2017 and is based in Welshpool, Australia.
How the Company Makes MoneyDXN Ltd. generates revenue primarily through the leasing of data center space and the provision of related services. The company's key revenue streams include rental income from co-location services, where clients pay for the space, power, and cooling necessary to house their IT infrastructure. Additionally, DXN offers cloud connectivity services, enabling seamless integration between customers' on-premise systems and cloud-based platforms, generating further income. Managed services, including monitoring, security, and maintenance of clients' data center operations, also contribute to the company's earnings. Strategic partnerships with technology providers and telecommunications companies enhance DXN's service offerings and market reach, playing a significant role in its revenue generation.

DXN Ltd. Financial Statement Overview

Summary
DXN Ltd. is facing significant financial challenges across its income statement, balance sheet, and cash flow. Despite revenue growth and positive operational cash flow, the company struggles with profitability and high leverage, posing substantial risks to its financial health.
Income Statement
35
Negative
DXN Ltd.'s income statement shows a challenging financial position with negative net income and EBIT. Although there is a positive revenue growth from the previous year, the company struggles with profitability, as indicated by negative EBIT and net profit margins. The gross profit margin has improved significantly, suggesting some operational cost control, but the overall profitability remains weak.
Balance Sheet
30
Negative
The balance sheet reflects a highly leveraged financial structure with a negative stockholders' equity, indicating solvency concerns. The debt-to-equity ratio cannot be calculated due to negative equity, and the return on equity is negative due to continuous losses. The equity ratio is negative, which poses a significant risk to financial stability.
Cash Flow
45
Neutral
Cash flow analysis indicates some improvement, with positive operating cash flow and free cash flow in the latest period. However, the operating cash flow to net income ratio is skewed by negative net income. The company has shown resilience in generating cash from operations and managing capital expenditures, but overall cash flow remains under pressure.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
14.75M10.76M5.05M14.26M8.04M5.19M
Gross Profit
5.70M5.80M-3.33M-4.08M-6.20M-6.67M
EBIT
44.82K-1.30M-5.30M-6.78M-8.65M-9.82M
EBITDA
-1.13M175.90K-5.99M-3.28M-42.65K-10.24M
Net Income Common Stockholders
-2.88M-2.30M-9.61M-6.90M-4.81M-12.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.10M2.98M710.21K1.92M1.66M3.59M
Total Assets
15.60M14.16M18.48M27.27M23.87M31.84M
Total Debt
6.90M8.32M13.16M15.56M10.14M15.25M
Net Debt
1.80M5.34M12.45M13.64M8.48M11.66M
Total Liabilities
11.25M14.57M18.66M19.82M12.86M16.92M
Stockholders Equity
4.35M-412.27K-175.14K7.45M11.01M14.92M
Cash FlowFree Cash Flow
878.15K1.13M-1.86M-428.58K-2.84M-9.47M
Operating Cash Flow
945.95K1.17M-1.53M-378.98K-2.66M-6.03M
Investing Cash Flow
-387.37K-183.37K-334.06K-3.87M1.88M-6.15M
Financing Cash Flow
5.07M770.39K1.22M4.51M-1.14M10.41M

DXN Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.05
Price Trends
50DMA
0.04
Positive
100DMA
0.04
Positive
200DMA
0.05
Negative
Market Momentum
MACD
<0.01
Negative
RSI
67.58
Neutral
STOCH
55.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DXN, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 55.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DXN.

DXN Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.10-7.47%2.99%7.37%-8.16%
AUDXN
50
Neutral
AU$14.04M-135.93%133.36%91.40%
$1.45B290.403.84%
$175.58M-19.32%
$5.77B-2.06%
DERW8
€7.49B90.4737.44%0.65%
AUDUB
39
Underperform
AU$41.97M-131.93%15.31%61.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DXN
DXN Ltd.
0.05
>-0.01
-16.67%
MGPPF
Megaport
7.26
-0.85
-10.48%
APPEF
Appen Ltd.
0.76
0.52
216.67%
NXDCF
Nextdc Limited
9.04
-0.60
-6.22%
DE:RW8
Technology One Limited
22.40
11.48
105.13%
AU:DUB
Dubber Corporation Limited
0.02
>-0.01
-33.33%

DXN Ltd. Corporate Events

DXN Limited Announces Change in Company Secretary
Jun 16, 2025

DXN Limited, a company listed on the ASX, has announced a change in its company secretary position. Ms. Shelby Coleman has resigned, and Ms. Maria Clemente, a seasoned governance and compliance professional with over 15 years of experience, has been appointed as her replacement. This change is effective immediately and is expected to enhance the company’s governance and compliance functions, given Ms. Clemente’s extensive background in corporate advisory and her previous role as a listings adviser at the ASX.

The most recent analyst rating on (AU:DXN) stock is a Buy with a A$0.08 price target. To see the full list of analyst forecasts on DXN Ltd. stock, see the AU:DXN Stock Forecast page.

DXN Secures AU$4.6 Million Contract with Globalstar for Modular Data Centres
Jun 2, 2025

DXN Limited has secured a significant contract with Globalstar Inc., valued at approximately AU$4.6 million, to deliver three prefabricated modular data centre units in Hawaii by the end of 2025. This contract highlights DXN’s technical strength and customization capabilities, reinforcing its strategic expansion into high-growth sectors such as satellite communications and aerospace. The project is expected to bolster DXN’s position in the global satellite and aerospace infrastructure sector, supporting the growing demand for edge-capable, rapidly deployable data centres. The contract is seen as a milestone in DXN’s scale-up strategy, enhancing its global delivery capabilities and affirming its role as a leading provider of mission-critical infrastructure.

The most recent analyst rating on (AU:DXN) stock is a Buy with a A$0.08 price target. To see the full list of analyst forecasts on DXN Ltd. stock, see the AU:DXN Stock Forecast page.

DXN Limited Secures $2 Million Contract with DP World Australia for Modular Data Centres
May 27, 2025

DXN Limited has secured a $2 million contract with DP World Australia to design, manufacture, and deliver two modular data centres for their operations in New South Wales. This marks DXN’s first collaboration with DP World and highlights the company’s expansion into high-availability infrastructure for the logistics and transport sectors. The project is scheduled for delivery in the third quarter of 2025 and reinforces DXN’s reputation as a trusted partner in modular data centre infrastructure, reflecting the increasing demand for resilient, edge-ready deployments in essential infrastructure environments.

The most recent analyst rating on (AU:DXN) stock is a Buy with a A$0.08 price target. To see the full list of analyst forecasts on DXN Ltd. stock, see the AU:DXN Stock Forecast page.

DXN Ltd. Highlights Q3 FY25 Data Center Operations and Market Strategy
May 2, 2025

DXN Ltd. has released its Q3 FY25 presentation, highlighting its operations in modular data centers and data center infrastructure. The announcement underscores the company’s strategic positioning in the Asia Pacific market, with a focus on expanding its data center operations and maintaining critical infrastructure, which could have significant implications for its market presence and stakeholder engagement.

DXN Limited Expands with New DCaaS Division Amid Revenue Growth
Apr 30, 2025

DXN Limited reported a revenue increase to $2.5 million for Q3 FY25, with a strong cash balance of $3.2 million. The company is on track to meet its $16 million revenue guidance for the fiscal year, bolstered by key contracts and strategic financial moves such as converting loans to equity. DXN is expanding its operations with the launch of a new DCaaS division, signing its first contract and planning further site expansions. This strategic move is expected to enhance DXN’s industry positioning by offering recurring revenue streams and strengthening its financial foundation.

DXN Limited Secures First DCaaS Contract with US Satellite Provider
Apr 16, 2025

DXN Limited has secured its first Data Centre as a Service (DCaaS) contract with a US-based global provider of satellite earth stations. The agreement, valued at approximately $3.6 million over five years, includes the design, build, and deployment of prefabricated technical infrastructure at an initial site in Northern Territory, Australia. This contract marks a significant step for DXN as it expands its service offerings to include managed services, reflecting the company’s strategic growth in the space and satellite industry. The deal also presents further revenue opportunities, with the potential for DXN to be engaged for additional sites across regional Australia.

DXN Ltd Executes Option to Acquire SDC Darwin Freehold
Mar 30, 2025

DXN Ltd has executed an Option Deed and Binding Contract of Sale to acquire the freehold of the land and building where SDC Darwin operates for $2.1 million. This acquisition, subject to obtaining debt financing, is expected to enhance shareholder value by increasing the company’s assets to a combined valuation of $10 million. The company is actively working with financiers to complete the transaction within 60 days, with further updates to be provided to shareholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.