Education
About Us
Working with TipRanks
Follow Us
Northern Data AG (DE:NB2)
:NB2
Top Page
Northern Data AG
(OTC:NB2)
Rating:48Neutral
Price Target:
$22.00
▲(5.16% Upside)
Northern Data AG (NB2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$1.34B
Dividend YieldN/A
Average Volume (3M)56.68K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue GrowthN/A
EPS GrowthN/A
CountryDE
Employees157
SectorTechnology
Sector Strength92
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding64,196,680
10 Day Avg. Volume50,536
30 Day Avg. Volume56,681
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.03Price Target Upside91.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Northern Data AG Business Overview & Revenue Model
Company DescriptionNorthern Data AG is a company operating in the high-performance computing (HPC) sector, focusing on providing infrastructure solutions and services. The company specializes in delivering tailored HPC solutions designed to meet the demanding computational needs of industries such as blockchain, artificial intelligence, big data analytics, and scientific research. Northern Data AG leverages its data center operations and innovative technology to support clients in managing and processing large-scale data workloads efficiently.
How the Company Makes MoneyNorthern Data AG generates revenue primarily through its high-performance computing services and data center operations. The company earns money by offering customized HPC infrastructure solutions to businesses and organizations that require substantial computational power. Key revenue streams include data center hosting, where clients rent space and resources in Northern Data's facilities, and specialized HPC services, which involve providing tailored computing solutions for specific industry applications. Additionally, partnerships with technology providers and collaborations with clients across various sectors contribute to its earnings, enabling Northern Data AG to capitalize on the growing demand for advanced computing capabilities.
Northern Data AG Earnings Call Summary
Earnings Call Date:Oct 17, 2024
(Q4-2024)
| % Change Since: -57.00%|
Next Earnings Date:Jan 21, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Northern Data's significant growth in cloud revenue and profitability, supported by successful GPU deployments and strong financial positioning. However, challenges in GPU deployment delays and customer diversification were noted. Despite these challenges, the company's strategic initiatives and financial strength indicate a positive outlook.Q4-2024 Updates
Positive Updates
Record Cloud Revenue Growth
Achieved a record cloud revenue of EUR 121 million, up 722% from 2023, driven by the deployment of Europe's largest pool of GPUs.
Significant Revenue and Profitability Increase
Revenue growth of 159% year-on-year to EUR 200.5 million, with adjusted EBITDA increasing from negative EUR 5.5 million in 2023 to EUR 60 million to EUR 80 million in 2024.
Successful GPU Deployment
Acquired over 22,000 NVIDIA H100 and H200 GPUs, contributing to sequential revenue growth each quarter of 2024.
Strong Financial Position
Well-funded with EUR 120 million in cash and cash equivalents at year-end, supporting further investments and growth.
Operational Improvements in Mining
Increased Bitcoin mining capacity to 7.9 exahash, resulting in 88% year-on-year revenue growth in Peak Mining in Q4.
Expansion in the United States
Expansion plans include new facilities in Georgia and Pittsburgh, Pennsylvania, to support growing HPC demand.
Negative Updates
Challenges in GPU Deployment
Faced delays in finalizing highly complex clusters and component supplies, impacting the speed of GPU ramp-up.
Limited Customer Diversification
Revenue in Q4 concentrated among nine customers, indicating a need for further customer base diversification.
Operating Cash Flow Challenges
Full year operating cash flow was an outflow of EUR 39 million, though positive cash flow is expected for 2025.
Company Guidance
During the Q4 2024 earnings call for Northern Data (NB2.DE), the executives provided comprehensive guidance on the company's financial and strategic performance. They reported a significant revenue increase of 159% year-on-year, reaching EUR 200.5 million, and a remarkable adjusted EBITDA growth from negative EUR 5.5 million in 2023 to a range of EUR 60 million to EUR 80 million in 2024. The cloud revenue was highlighted as a key driver, contributing EUR 121 million for the year, marking a 722% increase from 2023. The company's Bitcoin mining capacity also rose to 7.9 exahash, leading to an 88% year-on-year growth in mining revenue for Q4. Looking forward, Northern Data aims to expand its AI cloud infrastructure, plans to fully deploy its GPUs by the end of Q1 2025, and anticipates positive operating cash flow for the coming year, supported by a robust cash position of EUR 120 million. The executives emphasized their strategic focus on leveraging partnerships, enhancing data center capabilities, and maintaining a strong governance framework to sustain growth and solidify their leadership in the AI market.Northern Data AG Financial Statement Overview
Summary
Northern Data AG is facing significant financial challenges with negative profit margins and cash flow deficits. Despite some revenue growth, the negative EBIT and EBITDA margins, along with a negative free cash flow, highlight operational inefficiencies and potential risks to long-term sustainability.Income Statement
Northern Data AG's income statement shows significant challenges. Gross profit margin is negative due to high costs compared to revenue. Net profit margin is also negative, indicating losses. Despite a notable revenue growth from the previous year, the EBIT and EBITDA margins are negative, pointing to operational inefficiencies and high expense levels.30
Negative
Balance Sheet
The balance sheet reveals a moderately stable financial position with a debt-to-equity ratio of 0.85, suggesting manageable leverage. However, the equity ratio of 50.6% indicates a reliance on liabilities. The ROE is negative, reflecting recent losses. While the company has substantial assets, profitability remains a concern.45
Neutral
Cash Flow
Cash flow analysis highlights significant issues, with a negative free cash flow indicating insufficient cash generation to cover expenses. Both the operating cash flow to net income and free cash flow to net income ratios are unfavorable, suggesting operational challenges in converting revenues into cash.25
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 200.27M | 77.53M | 193.29M | 189.86M | 16.38M |
| Gross Profit | -32.69M | -374.00K | 64.25M | 101.75M | -15.07M |
| EBITDA | 43.06M | -27.15M | -169.49M | 388.10M | -65.72M |
| Net Income | -127.44M | -151.06M | -265.77M | 287.16M | -84.26M |
Balance Sheet | |||||
| Total Assets | 1.66B | 1.04B | 450.59M | 798.77M | 527.52M |
| Cash, Cash Equivalents and Short-Term Investments | 120.26M | 242.99M | 39.88M | 221.60M | 73.86M |
| Total Debt | 713.66M | 179.53M | 10.65M | 85.94M | 42.51M |
| Total Liabilities | 819.46M | 300.70M | 91.18M | 186.50M | 350.99M |
| Stockholders Equity | 839.83M | 734.38M | 359.41M | 612.27M | 176.52M |
Cash Flow | |||||
| Free Cash Flow | -1.04B | -116.09M | -99.73M | -112.80M | -34.94M |
| Operating Cash Flow | -58.39M | -17.60M | 960.00K | 88.07M | 183.48M |
| Investing Cash Flow | -950.27M | -84.67M | -95.22M | 126.62M | -211.58M |
| Financing Cash Flow | 885.53M | 305.11M | -82.91M | -69.03M | 99.06M |
Northern Data AG Technical Analysis
Negative
20.92
Price Trends
24.74
Negative
24.81
Negative
32.35
Negative
Market Momentum
-0.83
Positive
36.58
Neutral
5.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NB2, the sentiment is Negative. The current price of 20.92 is below the 20-day moving average (MA) of 22.58, below the 50-day MA of 24.74, and below the 200-day MA of 32.35, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 5.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:NB2.
Northern Data AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | €6.79B | 13.83 | 3.81% | 2.07% | 2.71% | -33.71% | |
48 Neutral | $1.34B | ― | ― | ― | ― | ||
| ― | €502.44M | 64.28 | 4.09% | 0.93% | ― | ― | |
| ― | €709.10M | 27.92 | 4.13% | ― | ― | ― | |
| ― | €460.18M | 10.67 | 16.30% | 2.85% | ― | ― | |
| ― | €525.12M | 25.23 | 16.15% | ― | ― | ― | |
| ― | $852.15M | 17.54 | 21.45% | 1.68% | ― | ― |
* Technology Sector Average
Performance Comparison
DE:NB2
Northern Data AG
20.92
0.87
4.34%
GB:0N5I
adesso AG
77.10
5.61
7.85%
GB:0O0F
CANCOM SE
22.50
-6.18
-21.55%
GB:0O2W
GFT Technologies
17.50
-4.87
-21.77%
GB:0NJB
SNP Schneider Neureither & Partner AG (Schneider Neureither & Partner AG)
72.20
21.20
41.57%
NGRRF
Nagarro SE
62.45
-22.05
-26.09%
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.