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Nextdc Limited
(Sydney:NXT)
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Rating:49Neutral
Price Target:
AU$15.00
▲(11.77% Upside)
Action:Reiterated
Date:11/15/25
Nextdc Limited's overall stock score is primarily impacted by its financial performance and technical analysis. While the company shows strong revenue growth and a solid balance sheet, significant profitability issues and negative cash flow trends are concerning. The technical indicators suggest a bearish market sentiment, further weighing down the score. The valuation is unattractive due to a negative P/E ratio and lack of dividend yield.
Positive Factors
Recurring revenue model
NextDC's business is largely contract-based and recurring, providing predictable topline cadence and customer stickiness. Over 2-6 months this underpins stable revenue visibility, supports long-term capacity planning, and reduces volatility versus transaction-driven peers.
Negative Factors
Persistent profitability shortfall
Despite healthy revenues and gross margins, negative net and EBIT margins point to structural profitability pressure from operating costs, depreciation or ramp expenses. Over months, persistent losses limit retained earnings and weaken the company's ability to self-fund expansion or improve ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
NextDC's business is largely contract-based and recurring, providing predictable topline cadence and customer stickiness. Over 2-6 months this underpins stable revenue visibility, supports long-term capacity planning, and reduces volatility versus transaction-driven peers.
Read all positive factors
Nextdc Limited (NXT) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$10.15B
Dividend YieldN/A
Average Volume (3M)2.19M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth13.16%
EPS Growth17.39%
CountryAU
Employees310
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.09
Shares Outstanding760,416,300
10 Day Avg. Volume2,336,687
30 Day Avg. Volume2,187,833
Financial Highlights & Ratios
PEG Ratio-9.85
Price to Book (P/B)2.17
Price to Sales (P/S)21.12
P/FCF Ratio-6.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$20.41Price Target Upside52.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.41
Revenue Forecast (FY)AU$730.39M
Nextdc Limited Business Overview & Revenue Model
Company Description
NEXTDC Limited is an Australian technology enterprise that delivers comprehensive data center solutions, encompassing outsourcing services, diverse connectivity options, and specialized infrastructure management software. The company facilitates e...
How the Company Makes Money
NextDC primarily makes money by selling colocation and related data-centre services under customer contracts. Its key revenue streams are: (1) Colocation services: recurring fees for dedicated space (e.g., racks/cages/suites) in its data centres, ...
Nextdc Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 453.46M | 427.21M | 404.34M | 362.37M | 291.04M | 246.06M |
| Gross Profit | 14.01M | 350.20M | 307.90M | 75.92M | 79.37M | 54.19M |
| EBITDA | 217.72M | 227.71M | 217.77M | 185.61M | 161.58M | 136.98M |
| Net Income | -57.23M | -60.54M | -44.15M | -25.64M | 9.14M | -23.63M |
Balance Sheet | ||||||
| Total Assets | 6.99B | 5.69B | 5.22B | 3.85B | 2.98B | 2.64B |
| Cash, Cash Equivalents and Short-Term Investments | 278.26M | 243.69M | 1.24B | 765.84M | 456.56M | 652.33M |
| Total Debt | 2.57B | 1.21B | 1.46B | 1.44B | 1.14B | 860.45M |
| Total Liabilities | 2.84B | 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 | -1.66B | -1.37B | -809.66M | -579.21M | -459.80M | -191.10M |
| Operating Cash Flow | 163.65M | 222.64M | 128.79M | 126.79M | 122.04M | 127.39M |
| Investing Cash Flow | -1.88B | -1.59B | -950.91M | -710.02M | -599.93M | -318.50M |
| Financing Cash Flow | 1.61B | 372.08M | 1.29B | 893.06M | 286.98M | -55.33M |
Nextdc Limited Technical Analysis
Positive
13.42
Price Trends
14.32
Negative
13.94
Positive
13.74
Positive
Market Momentum
-0.12
Negative
55.26
Neutral
83.83
Negative
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 13.42 is below the 20-day moving average (MA) of 13.55, below the 50-day MA of 14.32, and below the 200-day MA of 13.74, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 83.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NXT.
Nextdc Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | AU$2.27B | 26.10 | 33.69% | 3.67% | 12.60% | 8.55% | |
62 Neutral | AU$1.56B | 62.92 | 5.01% | ― | 3.78% | -9.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$4.26B | -154.17 | -5.99% | ― | 23.32% | -403.83% | |
49 Neutral | AU$10.15B | -149.61 | -1.38% | ― | 13.16% | 17.39% | |
43 Neutral | AU$12.94M | -0.54 | -346.49% | ― | 6.70% | 33.88% | |
43 Neutral | AU$158.90M | -8.77 | -24.33% | ― | -49.13% | 0.65% |
* Technology Sector Average
AU:NXT
Nextdc Limited
14.21
-0.25
-1.72%
AU:MP1
Megaport
19.53
4.58
30.62%
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13.10
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52.70%
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0.06
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-22.50%
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65.00
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DC Two Ltd.
0.16
0.09
131.88%
Nextdc Limited Corporate Events
NEXTDC boosts contracted utilisation and forward order book while holding FY26 guidance
Jul 21, 2026
NEXTDC has reported that its pro forma contracted utilisation rose by 73MW, or 11%, to 740MW as at 30 June 2026, driven by additional customer contract wins across its data centre portfolio. This growth underpins a pro forma forward order book tha...
NEXTDC boosts senior debt capacity to A$8.7bn to fund data centre expansion
Jul 9, 2026
NEXTDC Limited has upsized its new senior debt facilities to A$2.3 billion, lifting total available senior debt capacity from A$6.4 billion to A$8.7 billion and underscoring strong support from a broad syndicate of domestic and international banks...
Nextdc Issues New Shares Following Option Conversions
Jul 7, 2026
Nextdc Limited has notified the market of the issue of a small tranche of new ordinary fully paid shares following the conversion of previously unquoted options or other convertible securities. The company will issue 4,653 NXT ordinary shares on 7...
NEXTDC Director Lifts Indirect Stake via Entitlement Offer
May 21, 2026
NEXTDC director Jamaludin Ibrahim has increased his indirect holding in the company through Swiss Life (Singapore) Pte. Ltd., which manages a discretionary trust over his estate. The trust acquired 2,777 ordinary shares at $12.70 each via particip...
NEXTDC director increases indirect shareholding via entitlement offer
May 21, 2026
NEXTDC has reported a change in the shareholding of non-executive director Dr Eileen Doyle, whose interest is held indirectly through the S E Doyle Super Fund. Following participation in the company’s entitlement offer announced in April 20...
NEXTDC Director Douglas Flynn Lifts Stake via Entitlement Offer
May 21, 2026
NEXTDC director Douglas Flynn has increased his indirect shareholding in the company through participation in the group’s recent entitlement offer. Flynn, via his superannuation-related entity DR LC Flynn Nominees Pty Ltd, acquired 23,712 o...
NEXTDC director boosts indirect stake via entitlement offer
May 21, 2026
NEXTDC Limited has disclosed a change in director Stuart Davis’s indirect shareholding, with his superannuation fund increasing its stake through participation in the company’s recent entitlement offer. Davis, via Caovis Pty Ltd as tru...
JPMorgan Exits Substantial Holder Position in Nextdc
May 8, 2026
JPMorgan Chase Co. and its affiliates have notified that they have ceased to be a substantial holder in Nextdc, following a series of changes in relevant interests tied largely to securities lending, collateral positions and proprietary trading a...
NEXTDC issues reminder on retail leg of equity raising
May 5, 2026
NEXTDC has reminded eligible retail shareholders about the retail component of its fully underwritten 1‑for‑5.4 pro‑rata accelerated non‑renounceable entitlement offer, following the broader capital raising announced in Apr...
NEXTDC Secures A$1.8bn in New Senior Debt to Power Data Centre Expansion
May 4, 2026
NEXTDC has secured A$1.8 billion in new senior debt commitments from a syndicate of leading domestic and international banks, lifting its total available senior debt facilities from A$6.4 billion to A$8.2 billion. The additional funding boosts the...
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.