ASX:NXT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

NEXTDC Limited provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia.


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

How has NEXTDC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NXT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.9%

NXT

5.0%

AU IT

4.8%

AU Market


1 Year Return

40.5%

NXT

21.7%

AU IT

-10.6%

AU Market

Return vs Industry: NXT exceeded the Australian IT industry which returned 21.7% over the past year.

Return vs Market: NXT exceeded the Australian Market which returned -10.6% over the past year.


Shareholder returns

NXTIndustryMarket
7 Day-1.9%5.0%4.8%
30 Day3.1%26.2%5.5%
90 Day21.4%15.8%-10.1%
1 Year40.5%40.5%23.6%21.7%-7.0%-10.6%
3 Year107.4%107.4%41.1%30.5%10.3%-4.3%
5 Year302.8%291.1%120.6%95.6%28.3%0.7%

Price Volatility Vs. Market

How volatile is NEXTDC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NEXTDC undervalued compared to its fair value and its price relative to the market?

3.65x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NXT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NXT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NXT is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: NXT is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NXT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NXT is overvalued based on its PB Ratio (3.6x) compared to the AU IT industry average (1.9x).


Next Steps

Future Growth

How is NEXTDC forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

64.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: NXT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NXT's is expected to become profitable in the next 3 years.

Revenue vs Market: NXT's revenue (22.4% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: NXT's revenue (22.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NXT's Return on Equity is forecast to be low in 3 years time (2.8%).


Next Steps

Past Performance

How has NEXTDC performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXT is currently unprofitable.

Growing Profit Margin: NXT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NXT is unprofitable, but has reduced losses over the past 5 years at a rate of 6.8% per year.

Accelerating Growth: Unable to compare NXT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NXT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-0.3%).


Return on Equity

High ROE: NXT has a negative Return on Equity (-1.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is NEXTDC's financial position?


Financial Position Analysis

Short Term Liabilities: NXT's short term assets (A$250.9M) exceed its short term liabilities (A$73.3M).

Long Term Liabilities: NXT's short term assets (A$250.9M) do not cover its long term liabilities (A$886.6M).


Debt to Equity History and Analysis

Debt Level: NXT's debt to equity ratio (91.3%) is considered high.

Reducing Debt: NXT's debt to equity ratio has increased from 27.3% to 91.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NXT has sufficient cash runway for 7 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: NXT is forecast to have sufficient cash runway for 8 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is NEXTDC's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NXT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NXT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NXT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NXT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NXT's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Craig Scroggie

7.83yrs

Tenure

AU$2,551,637

Compensation

Mr. Craig Scroggie has been Executive Chairman at Asia Pacific Data Centre Group since October 18, 2018. He has been Managing Director since August 2018 and also has been the Chief Executive Officer at NEX ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD0.00) is below average for companies of similar size in the Australian market ($USD2.24M).

Compensation vs Earnings: Craig's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Scroggie
CEO, MD & Executive Director7.83yrsAU$2.55m0.44% A$18.4m
Oskar Tomaszewski
Chief Financial Officer5.42yrsAU$885.09k0.033% A$1.4m
Simon Cooper
Chief Operating Officer8.58yrsAU$902.30k0.046% A$2.0m
David Dzienciol
Chief Customer Officer & Commercial Officer3.17yrsAU$853.33k0.046% A$1.9m
Adam Scully
Chief Sales Officer1.75yrsAU$759.44k0.026% A$1.1m
Haidee van Ruth
Chief Accounting Officer2yrsno datano data
Jeff Arndt
Chief Information Officer1.33yrsno datano data
Alex Teo
Vice President of Strategy & Investor Relationsno datano datano data
Michael Helmer
Chief Legal Officer & Company Secretaryno datano datano data
Karyn Turbill
Chief Marketing Officer1.33yrsno datano data

2.6yrs

Average Tenure

Experienced Management: NXT's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Scroggie
CEO, MD & Executive Director7.83yrsAU$2.55m0.44% A$18.4m
Douglas Flynn
Independent Non-Executive Chairman6yrsAU$255.50k0.035% A$1.5m
Gregory Clark
Independent Non-Executive Director6yrsAU$150.50k0.015% A$609.4k
Jennifer Lambert
Non-Executive Director0.58yrno data0.0026% A$109.2k
Stephen Smith
Non-Executive Director0.83yrno datano data
Stuart Davis
Non-Executive Director6.58yrsAU$153.00k0.0084% A$352.4k

6.0yrs

Average Tenure

66yo

Average Age

Experienced Board: NXT's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NXT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.4%.


Top Shareholders

Company Information

NEXTDC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NEXTDC Limited
  • Ticker: NXT
  • Exchange: ASX
  • Founded: 2010
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: AU$4.200b
  • Shares outstanding: 455.05m
  • Website: https://www.nextdc.com

Number of Employees


Location

  • NEXTDC Limited
  • 100 Creek Street
  • Level 6
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2010
NXTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2010
2NXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
NXDC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2010

Biography

NEXTDC Limited provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia. The company offers cloud connectivity for organizations; data center-as-a-service solutions; universal connectivity solutions; cloud center ecosystems; data-center infrastructure management; ONEDC, a data center infrastructure management tool; and intelligent service management services. It also provides technical assistance on-the-ground; and data center professional services for the infrastructure life cycle, including technical advisory, planning, project management, managing deliveries, and operational infrastructure support. In addition, the company provides data center colocation solutions comprising rack packages for individual 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 with photo and biometric template. 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; and AXON virtual connectivity platform. NEXTDC Limited was founded in 2010 and is headquartered in Brisbane, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 10:42
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.