Nextdc Limited (NXT) AI Stock Analysis

• Market Cap: $10.58B
• Dividend Yield: N/A
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 5.66%
• EPS Growth: -16.43%
• Country: AU
• Employees: 271
• Sector: Technology
• Sector Strength: 84
• Industry: Real Estate - Services
• EPS (TTM): -0.02
• Shares Outstanding: 641,277,900
• 10 Day Avg. Volume: 3,874,971
• 30 Day Avg. Volume: 2,296,451
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 24.02
• Enterprise Value/Gross Profit: 303.74
• Enterprise Value/Ebitda: 43.60
• 1Y Price Target: $20.13
• Price Target Upside: 21.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 61 Neutral
• Price Target: AU$17.00 ▲(2.53% Upside)

Nextdc Limited's overall stock score is primarily influenced by its strong technical momentum, despite being in overbought territory. Financial performance is a concern due to negative profitability and cash flow issues. Valuation is weak with a negative P/E ratio and no dividend yield, highlighting the need for improved profitability to enhance investor appeal.

Positive Factors

Analyst Recommendation

Buy recommendation for NEXTDC Ltd (NXT.AX) suggests confidence in the company's future prospects.

Expansion

NEXTDC is undertaking a capital raise to fund the acquisition of new data center development sites in Asia, signaling expansion into new markets.

Performance

NEXTDC reported a strong FY24 result with underlying Sales and EBITDA surpassing expectations, indicating robust financial performance.

Negative Factors

Capital Expenditure

Significant capex guidance for FY25, combined with lower EBITDA, is limiting potential improvements in NEXTDC's financial profile.

FY25 Guidance

FY25 guidance for NEXTDC is below expectations on net revenue and EBITDA, reflecting a slower ramp in the order book.

Revenue Outlook

Slower than expected net-revenue outlook and delayed ramp profile contribute to meaningful EBITDA downgrades for NEXTDC.

Nextdc Limited Business Overview & Revenue Model

Company Description

NEXTDC Limited (NXT) is an Australian-based company specializing in data center services, providing scalable, reliable, and secure colocation solutions. The company serves a variety of industries, including financial services, telecommunications, and government sectors, offering innovative infrastructure solutions to support the cloud computing and digital transformation needs of its clients. NEXTDC operates a network of strategically located data centers across Australia, catering to the growing demand for high-performance data hosting and connectivity solutions.

How the Company Makes Money

NEXTDC Limited generates revenue primarily through its data center services, which include colocation, interconnection, and managed services. The company charges clients for the use of its data center facilities, which provide space, power, and cooling for customers' IT equipment. Revenue streams include recurring subscription fees for space and power usage, as well as additional charges for connectivity and network services. NEXTDC leverages strategic partnerships with major cloud and network service providers to enhance its service offerings, driving additional revenue through value-added services that cater to complex IT infrastructure needs. The company's business model is supported by long-term contracts, ensuring stable and predictable income while benefiting from the increasing demand for data center capacity driven by digital transformation trends.

Nextdc Limited Financial Statement Overview

Summary

Nextdc Limited shows strong revenue growth and a solid balance sheet with low leverage. However, profitability remains a significant concern, with negative net income and EBIT margins. Cash flow challenges, particularly negative free cash flow, further underscore the need for strategic improvements to enhance financial performance and sustainability.

Income Statement

Nextdc Limited has demonstrated consistent revenue growth, with an 11.19% increase in the latest year. However, the company faces challenges with profitability, as indicated by a negative net profit margin of -14.17% and a negative EBIT margin. The gross profit margin is strong at 81.97%, suggesting efficient cost management. Despite these strengths, the negative net income and EBIT margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.29, indicating a conservative leverage position. The equity ratio is robust, reflecting strong asset backing. However, the return on equity is negative, suggesting inefficiencies in generating profits from shareholders' equity. Overall, the balance sheet is stable but highlights the need for improved profitability.

Cash Flow

The cash flow statement reveals a concerning trend with negative free cash flow growth and a high free cash flow to net income ratio of -6.17. Operating cash flow is positive, covering net income adequately, but the negative free cash flow indicates significant capital expenditures or operational challenges. This poses a risk to financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	427.21M	427.21M	404.34M	362.37M	291.04M	246.06M
Gross Profit	33.78M	350.20M	307.90M	75.92M	79.37M	54.19M
EBITDA	235.34M	227.71M	229.95M	174.07M	156.34M	136.98M
Net Income	-60.54M	-60.54M	-44.15M	-25.64M	9.14M	-23.63M
Balance Sheet
Total Assets	5.69B	5.69B	5.22B	3.85B	2.98B	2.64B
Cash, Cash Equivalents and Short-Term Investments	243.69M	243.69M	1.24B	765.84M	456.56M	652.33M
Total Debt	1.21B	1.21B	1.46B	1.44B	1.14B	860.45M
Total Liabilities	1.54B	1.54B	1.65B	1.57B	1.28B	980.69M
Stockholders Equity	4.15B	4.15B	3.57B	2.28B	1.70B	1.66B
Cash Flow
Free Cash Flow	-1.36B	-1.37B	-809.66M	-579.21M	-459.80M	-191.10M
Operating Cash Flow	212.86M	222.64M	128.79M	126.79M	122.04M	127.39M
Investing Cash Flow	-1.59B	-1.59B	-950.91M	-710.02M	-599.93M	-318.50M
Financing Cash Flow	372.08M	372.08M	1.29B	893.06M	286.98M	-55.33M

Nextdc Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NXT, the sentiment is Positive. The current price of 16.58 is above the 20-day moving average (MA) of 15.10, above the 50-day MA of 14.55, and above the 200-day MA of 14.09, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 69.88 is Neutral, neither overbought nor oversold. The STOCH value of 73.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NXT.

Nextdc Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTL	74 Outperform	AU$1.44B	29.85	60.59%	2.77%	5.82%	11.11%
OCL	74 Outperform	AU$1.98B	55.72	35.71%	1.03%	5.11%	12.91%
SRV	74 Outperform	AU$689.31M	12.87	24.81%	4.04%	11.19%	34.96%
BVS	73 Outperform	AU$919.01M	12.38	65.33%	12.91%	25.67%	744.90%
NXL	62 Neutral	AU$813.22M	308.39	-3.19%	―	0.40%	-280.65%
Sector *	61 Neutral	$35.56B	8.99	-10.49%	1.86%	8.45%	-8.32%
NXT	61 Neutral	$10.58B	―	-1.55%	―	5.66%	-16.43%

Nextdc Limited Corporate Events

NEXTDC Limited Issues New Securities to Bolster Growth

NEXTDC Limited has announced the issuance of 130,902 ordinary fully paid securities as part of its latest financial maneuver. This move signifies the company’s ongoing efforts to enhance its capital structure, potentially strengthening its market position and providing additional resources for strategic growth initiatives.

The most recent analyst rating on (AU:NXT) stock is a Buy with a A$19.50 price target. To see the full list of analyst forecasts on Nextdc Limited stock, see the AU:NXT Stock Forecast page.

Nextdc Limited Issues New Performance Rights to Employees

Nextdc Limited has announced the issuance of 377,903 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s ongoing efforts to incentivize its workforce and align employee interests with corporate goals, potentially impacting its operational efficiency and market competitiveness.

The most recent analyst rating on (AU:NXT) stock is a Buy with a A$19.50 price target. To see the full list of analyst forecasts on Nextdc Limited stock, see the AU:NXT Stock Forecast page.

NEXTDC Secures A$2.2 Billion in New Debt Facilities

NEXTDC Limited has secured new senior debt facilities totaling A$2.2 billion, increasing its total available senior debt facilities to A$5.1 billion. These new facilities, underwritten by a syndicate of leading banks, will primarily support capital expenditure for recent customer contract wins and ongoing data center developments, positioning NEXTDC for continued growth and expansion in the data center industry.

The most recent analyst rating on (AU:NXT) stock is a Buy with a A$19.50 price target. To see the full list of analyst forecasts on Nextdc Limited stock, see the AU:NXT Stock Forecast page.

Nextdc Limited Director Adjusts Shareholding

Nextdc Limited announced a change in the director’s interest notice, detailing that Gregory J Clark, a director, has disposed of 15,000 ordinary shares at $13.88 per share, reducing his holding to 61,039 shares. This transaction, conducted on-market, reflects a minor adjustment in the director’s shareholding and is unlikely to significantly impact the company’s operations or market positioning.

The most recent analyst rating on (AU:NXT) stock is a Buy with a A$19.50 price target. To see the full list of analyst forecasts on Nextdc Limited stock, see the AU:NXT Stock Forecast page.

NEXTDC Announces Record Growth in Contracted Utilisation and Forward Orders

NEXTDC Limited has announced a significant increase in its contracted utilisation, rising by 52MW to 228MW as of March 31, 2025, following recent customer contract wins. This growth is largely driven by increased demand in the Victorian data centre ecosystem, particularly from AI deployments. The company’s forward order book has also reached a record 127MW, marking a 54% increase. To accommodate this growth, NEXTDC has raised its FY25 capital expenditure guidance by A$100 million and plans to secure new senior debt facilities to fund these expansions. The expansion is expected to impact revenue from FY27 onwards, reflecting the company’s strategic positioning in the rapidly evolving data centre industry.