Nextdc Limited (NXT) AI Stock Analysis

• Market Cap: $9.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -2.69%
• EPS Growth: -17.50%
• Country: AU
• Employees: 271
• Sector: Technology
• Sector Strength: 89
• Industry: Real Estate - Services
• EPS (TTM): -0.07
• Shares Outstanding: 641,277,900
• 10 Day Avg. Volume: 2,253,192
• 30 Day Avg. Volume: 1,883,333
• PEG Ratio: 0.59
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.93
• 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: $19.37
• Price Target Upside: 35.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 58 Neutral
• Price Target: AU$13.50 ▼(-5.86%Downside)

Nextdc Limited's overall stock score is influenced by strong revenue growth and operational efficiency, but is hindered by profitability challenges and negative free cash flow. Technical analysis suggests mixed trends, while valuation concerns due to a negative P/E ratio impact the attractiveness of the stock. The lack of earnings call data and notable corporate events limits additional insights.

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, a technology company, provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia. The company offers connectivity solutions, such as interconnection and intercapital services, data centre interconnect, and cross connect; data center-as-a-service solutions; cloud solutions; and industry solutions. It also provides technical assistance on-the-ground; and professional services for the infrastructure life cycle, including planning, project management, and migration stages. In addition, the company provides data center colocation solutions comprising rack packages for single or multiple racks; Rack Blocks to share the total power allocation across various racks; and Quarter Racks for smaller footprints. Further, it offers security systems and protocols that include multi-layered access systems with biometric fingerprint technology and ID access cards. Additionally, the company provides ONEDC, a data center infrastructure management tool, which delivers real-time intelligence across entire NEXTDC data center footprint to manage infrastructure; disaster recovery solutions; and AXON interconnectivity platform. NEXTDC Limited was incorporated in 2010 and is headquartered in Brisbane, Australia.

How the Company Makes Money

Nextdc Limited generates revenue primarily through the leasing of data center space and the provision of associated services. The company's revenue model is built on offering colocation services, where clients rent space for their servers and IT infrastructure within Nextdc's facilities. In addition to colocation, Nextdc provides ancillary services such as connectivity solutions, managed services, and power provisioning. Key revenue streams include monthly recurring charges for space and power usage, as well as fees for additional services like cross-connects and remote hands support. The company benefits from partnerships with major telecommunications carriers and cloud service providers, which enhance its service offerings and expand its customer base. Factors such as increasing demand for cloud computing, data storage, and digital transformation initiatives contribute significantly to Nextdc's earnings growth.

Nextdc Limited Financial Statement Overview

Summary

Nextdc Limited demonstrates robust revenue growth and strong operational efficiency with a high EBITDA margin. However, profitability challenges are evident with negative net income and return on equity. The balance sheet is solid, but negative free cash flow due to high capital expenditures indicates liquidity challenges.

Income Statement

Nextdc Limited experienced a solid revenue growth of 11.58% from 2023 to 2024. However, the net profit margin is negative due to consistent net losses, indicating challenges in achieving profitability. The company's EBITDA margin of 53.86% for 2024 is strong, suggesting effective operational management, yet the gross profit margin has decreased to 15.05%, showing increased cost pressures.

Balance Sheet

The company has a healthy equity ratio of 68.37%, indicating a strong equity base relative to total assets. The debt-to-equity ratio of 0.41 is manageable, suggesting moderate leverage. However, the negative return on equity of -1.24% reflects the impact of net losses on shareholder returns.

Cash Flow

Nextdc's operating cash flow to net income ratio is not meaningful due to negative net income, though operating cash flow remains positive. Free cash flow is significantly negative, reflecting high capital expenditures that could be strategic but strain cash resources. The lack of free cash flow growth highlights ongoing liquidity challenges.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	384.20M	404.34M	362.37M	291.04M	246.06M	200.78M
Gross Profit	136.95M	307.90M	75.92M	79.37M	54.19M	48.57M
EBITDA	240.13M	229.95M	174.07M	156.34M	136.98M	97.74M
Net Income	-64.33M	-44.15M	-25.64M	9.14M	-23.63M	-45.04M
Balance Sheet
Total Assets	5.24B	5.22B	3.85B	2.98B	2.64B	2.66B
Cash, Cash Equivalents and Short-Term Investments	372.97M	1.24B	765.84M	456.56M	652.33M	892.94M
Total Debt	857.07M	1.46B	1.44B	1.14B	860.45M	875.07M
Total Liabilities	1.05B	1.65B	1.57B	1.28B	980.69M	976.10M
Stockholders Equity	4.20B	3.57B	2.28B	1.70B	1.66B	1.68B
Cash Flow
Free Cash Flow	-1.52B	-809.66M	-579.21M	-459.80M	-191.10M	-349.99M
Operating Cash Flow	156.38M	128.79M	126.79M	122.04M	127.39M	54.71M
Investing Cash Flow	-1.71B	-950.91M	-710.02M	-599.93M	-318.50M	-404.70M
Financing Cash Flow	1.34B	1.29B	893.06M	286.98M	-55.33M	844.93M

Nextdc Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 14.34 is above the 20-day moving average (MA) of 13.75, above the 50-day MA of 13.06, and below the 200-day MA of 14.74, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 67.66 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
OCL	76 Outperform	AU$1.72B	53.62	36.92%	0.97%	7.00%	19.41%
SRV	74 Outperform	AU$558.87M	10.32	25.52%	4.96%	6.85%	237.34%
DTL	66 Neutral	AU$1.16B	26.14	58.96%	3.51%	-59.05%	6.76%
BVS	65 Neutral	AU$1.04B	14.51	57.04%	2.88%	18.63%	―
Sector *	63 Neutral	$32.90B	6.03	-11.70%	1.95%	5.55%	-19.87%
NXT	58 Neutral	$9.13B	―	-2.06%	―	-2.69%	-17.50%
NXL	52 Neutral	AU$711.08M	308.39	-0.19%	―	17.64%	96.99%

Nextdc Limited Corporate Events

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.

NEXTDC Director’s Interest Update: Performance Rights Allocation

NEXTDC Limited announced a change in the director’s interest, with Craig Ian Scroggie acquiring 3,633,720 Performance Rights under the company’s Growth Incentive Plan. This allocation is part of NEXTDC’s strategy to align executive interests with company growth, potentially impacting the company’s operational focus and stakeholder confidence as these rights are set to vest in February 2030.

AustralianSuper Increases Stake in NEXTDC Limited

AustralianSuper Pty Ltd has increased its voting power in NEXTDC Limited, a company known for its data center services, from 6.29% to 7.48%. This change in substantial holding reflects a significant shift in AustralianSuper’s investment strategy, potentially impacting NEXTDC’s shareholder dynamics and market perception.