Executive Summary
NEXTDC Limited provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia.
Rewards
Risk Analysis
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
| NXT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | 5.0% | 4.8% |
| 30 Day | 3.1% | 26.2% | 5.5% |
| 90 Day | 21.4% | 15.8% | -10.1% |
| 1 Year | 40.5%40.5% | 23.6%21.7% | -7.0%-10.6% |
| 3 Year | 107.4%107.4% | 41.1%30.5% | 10.3%-4.3% |
| 5 Year | 302.8%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
1 week ago | Simply Wall St
Can We See Significant Institutional Ownership On The NEXTDC Limited (ASX:NXT) Share Register?2 months ago | Simply Wall St
NEXTDC (ASX:NXT) Takes On Some Risk With Its Use Of Debt3 months ago | Simply Wall St
The NEXTDC (ASX:NXT) Share Price Is Up 263% And Shareholders Are Boasting About ItValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 7.83yrs | AU$2.55m | 0.44% A$18.4m | |
| Chief Financial Officer | 5.42yrs | AU$885.09k | 0.033% A$1.4m | |
| Chief Operating Officer | 8.58yrs | AU$902.30k | 0.046% A$2.0m | |
| Chief Customer Officer & Commercial Officer | 3.17yrs | AU$853.33k | 0.046% A$1.9m | |
| Chief Sales Officer | 1.75yrs | AU$759.44k | 0.026% A$1.1m | |
| Chief Accounting Officer | 2yrs | no data | no data | |
| Chief Information Officer | 1.33yrs | no data | no data | |
| Vice President of Strategy & Investor Relations | no data | no data | no data | |
| Chief Legal Officer & Company Secretary | no data | no data | no data | |
| Chief Marketing Officer | 1.33yrs | no data | no data |
2.6yrs
Average Tenure
Experienced Management: NXT's management team is considered experienced (2.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 7.83yrs | AU$2.55m | 0.44% A$18.4m | |
| Independent Non-Executive Chairman | 6yrs | AU$255.50k | 0.035% A$1.5m | |
| Independent Non-Executive Director | 6yrs | AU$150.50k | 0.015% A$609.4k | |
| Non-Executive Director | 0.58yr | no data | 0.0026% A$109.2k | |
| Non-Executive Director | 0.83yr | no data | no data | |
| Non-Executive Director | 6.58yrs | AU$153.00k | 0.0084% 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NXT | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Dec 2010 |
| NXT | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Dec 2010 |
| 2NX | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2010 |
| NXDC.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/31 10:42 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.