Global Data Centre Group (GDC) AI Stock Analysis

• Market Cap: AU$110.11M
• Dividend Yield: 65.51%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 1.2
• Beta (1Y): 0.21
• Revenue Growth: -81.63%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 87
• Industry: Asset Management - Global
• EPS (TTM): 1.19
• Shares Outstanding: 77,272,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: <0.01
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Global Data Centre Group's stock is somewhat attractive due to its strong valuation metrics, including a low P/E ratio and a very high dividend yield, which are significant positives. However, the company's declining revenues and negative cash flows pose risks to its financial health and operational efficiency. The technical analysis shows stability but lacks clear momentum. Addressing operational inefficiencies and stabilizing revenue will be crucial for improving the stock's attractiveness.

Global Data Centre Group Business Overview & Revenue Model

Company Description

Global Data Centre Group (GDC) is a leading provider in the data center industry, specializing in offering state-of-the-art infrastructure and services to support the growing demands of digital businesses worldwide. The company operates across various sectors including cloud computing, colocation services, and managed IT solutions, ensuring robust, secure, and scalable environments for enterprises seeking to enhance their digital operations.

How the Company Makes Money

GDC generates revenue primarily through its diversified portfolio of data center services. The main revenue streams include colocation services, where businesses pay for space, power, and cooling for their servers within GDC's facilities, and cloud services, which offer scalable computing resources on a pay-as-you-go basis. Additionally, GDC provides managed services, offering IT support and maintenance for businesses, which creates a steady stream of income. Key partnerships with technology providers and enterprises also play a crucial role in enhancing service offerings and driving revenue growth. The company's strategic location of data centers in key markets enables it to attract a broad customer base, contributing to its financial success.

Global Data Centre Group Financial Statement Overview

Summary

Global Data Centre Group faces challenges with declining revenues and operational inefficiencies. Despite these issues, the company has managed to improve its net income and maintain a strong balance sheet with low leverage. Cash flow issues remain a concern, with negative free cash flow indicating potential liquidity constraints. Continued focus on revenue stabilization and operational improvements could enhance future performance.

Income Statement

The company's revenue has decreased significantly over the past year, with a 90.6% decline from 2023 to 2024. Despite this, the net income turned positive in 2024, indicating improved cost management or other one-time gains, as evidenced by a substantial net profit margin of 441.6%. However, the EBIT margin is negative at -46.6%, which suggests operational inefficiencies. The EBITDA margin is exceptionally high at 554%, driven by significant adjustments to EBITDA figures.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 94.2%, indicating financial stability. The debt-to-equity ratio is low at 0.05, reflecting conservative leverage levels. Return on equity has improved to 6.6%, showing better profitability relative to shareholders' equity. However, the reduction in total assets from the previous year may raise concerns about asset management strategies.

Cash Flow

Free cash flow remains negative, although improved from the previous year. The operating cash flow to net income ratio is low at 0.1, suggesting that net income is not effectively translating into cash flow. The company shows a positive trend in free cash flow growth due to significant improvement from prior years' higher deficits.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.69M	3.00M	32.05M	16.46M	16.82M	5.78M
	Gross Profit
1.43M	2.45M	20.88M	11.80M	12.50M	4.64M
	EBIT
-46.25M	-1.40M	-1.76M	1.09M	8.56M	3.83M
	EBITDA
97.12M	16.65M	0.00	0.00	13.43M	3.83M
	Net Income Common Stockholders
92.28M	13.27M	-58.00K	589.00K	8.88M	4.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
133.78M	27.90M	34.25M	43.11M	21.29M	55.00M
	Total Assets
151.04M	212.65M	331.34M	200.59M	163.81M	110.40M
	Total Debt
15.23M	9.96M	89.22M	39.22M	20.88M	0.00
	Net Debt
-118.55M	-17.93M	54.97M	-3.89M	-411.00K	-55.00M
	Total Liabilities
27.86M	12.42M	123.51M	49.63M	26.25M	3.36M
	Stockholders Equity
123.18M	200.23M	164.71M	149.10M	128.34M	110.40M
Cash Flow		Free Cash Flow
78.44M	-5.20M	-10.04M	-11.02M	-736.00K	-236.00K
	Operating Cash Flow
78.44M	1.36M	-744.00K	-170.00K	306.00K	569.00K
	Investing Cash Flow
212.46M	7.17M	-94.31M	-9.42M	-75.78M	-42.16M
	Financing Cash Flow
-164.11M	-15.07M	83.54M	31.46M	30.62M	107.88M

Global Data Centre Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GDC, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.42, and above the 200-day MA of 1.36, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 83.24 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GDC.

Global Data Centre Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTC	78 Outperform	$32.00B	126.98	14.13%	0.21%	-1.78%	12.79%
TNE	70 Outperform	€10.48B	88.36	34.02%	0.76%	17.97%	14.29%
MP1	70 Outperform	$1.88B	308.18	3.84%	―	3.02%	55.33%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.61%
NXT	61 Neutral	$8.78B	―	-2.06%	―	-2.69%	-17.50%
GDC	60 Neutral	AU$110.11M	1.19	59.80%	65.51%	-81.63%	―
DVP	44 Neutral	$949.28M	―	-2.13%	―	77.18%	64.13%

Global Data Centre Group Corporate Events

Global Data Centre Group Exceeds Asset Realisation Targets in HY25

Global Data Centre Group has exceeded its asset realisation targets for the first half of the fiscal year 2025, completing all asset realisations ahead of schedule and generating approximately $313.8 million in net proceeds. Despite the suspension of its securities from the ASX due to insufficient operations, GDC has distributed significant proceeds to unitholders and achieved a statutory net profit of $75.1 million. The company is now assessing future wind-up costs and retention requirements, with plans to finalize distribution determinations by March 2025.

Global Data Centre Group Reports Strong Half-Year Financial Performance

Global Data Centre Group reported a significant increase in revenue and profit for the half year ending December 31, 2024, with revenue rising by 3,771% and profit attributable to security holders increasing by 226% compared to the previous year. The company also announced a special distribution of 200 cents per security, reflecting a robust financial performance and a strategic focus on enhancing shareholder value.