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NXT

NEXTDCASX:NXT Stock Report

Market Cap

AU$5.4b

7D

-3.6%

1Y

-12.5%

Updated

22 Oct, 2021

Data

Company Financials +
NXT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

NXT Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for NEXTDC
Historical stock prices
Current Share PriceAU$11.79
52 Week HighAU$10.06
52 Week LowAU$14.10
Beta-0.14
1 Month Change-12.60%
3 Month Change-8.25%
1 Year Change-12.47%
3 Year Change103.98%
5 Year Change221.25%
Change since IPO639.19%

Recent News & Updates

Sep 16
Is NEXTDC (ASX:NXT) Using Too Much Debt?

Is NEXTDC (ASX:NXT) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 08
Returns Are Gaining Momentum At NEXTDC (ASX:NXT)

Returns Are Gaining Momentum At NEXTDC (ASX:NXT)

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Jun 17
Here's Why NEXTDC (ASX:NXT) Has A Meaningful Debt Burden

Here's Why NEXTDC (ASX:NXT) Has A Meaningful Debt Burden

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

NXTAU ITAU Market
7D-3.6%1.6%0.7%
1Y-12.5%8.6%21.4%

Return vs Industry: NXT underperformed the Australian IT industry which returned 8.6% over the past year.

Return vs Market: NXT underperformed the Australian Market which returned 21.4% over the past year.

Price Volatility

Is NXT's price volatile compared to industry and market?
NXT volatility
NXT Beta-0.14
Industry Beta1.68
Market Beta1

Stable Share Price: NXT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NXT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010271Craig Scroggiehttps://www.nextdc.com

NEXTDC Limited, a technology company, 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 interconnection solutions; cloud center ecosystems; and data center asset 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.

NEXTDC Fundamentals Summary

How do NEXTDC's earnings and revenue compare to its market cap?
NXT fundamental statistics
Market CapAU$5.38b
Earnings (TTM)-AU$20.65m
Revenue (TTM)AU$246.07m

21.9x

P/S Ratio

-260.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NXT income statement (TTM)
RevenueAU$246.07m
Cost of RevenueAU$81.03m
Gross ProfitAU$165.04m
ExpensesAU$185.69m
Earnings-AU$20.65m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.045
Gross Margin67.07%
Net Profit Margin-8.39%
Debt/Equity Ratio47.1%

How did NXT perform over the long term?

See historical performance and comparison

Valuation

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

3.24x

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 Australian 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's PB Ratio (3.2x) is in line with the AU IT industry average.


Future Growth

How is NEXTDC forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

41.5%

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 (1.9%).

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 (16.9% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: NXT's revenue (16.9% per year) is forecast to grow slower 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 (3.1%).


Past Performance

How has NEXTDC performed over the past 5 years?

-70.2%

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, and losses have increased over the past 5 years at a rate of 70.2% 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 (-11.2%).


Return on Equity

High ROE: NXT has a negative Return on Equity (-1.24%), as it is currently unprofitable.


Financial Health

How is NEXTDC's financial position?


Financial Position Analysis

Short Term Liabilities: NXT's short term assets (A$716.7M) exceed its short term liabilities (A$77.3M).

Long Term Liabilities: NXT's short term assets (A$716.7M) do not cover its long term liabilities (A$903.4M).


Debt to Equity History and Analysis

Debt Level: NXT's debt to equity ratio (47.1%) is considered high.

Reducing Debt: NXT's debt to equity ratio has reduced from 47.6% to 47.1% 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 more than 3 years based on its current free cash flow.

Forecast Cash Runway: NXT has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 27.3% each year.


Dividend

What is NEXTDC 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?

3.1yrs

Average management tenure


CEO

Craig Scroggie

9.33yrs

Tenure

AU$3,146,357

Compensation

Mr. Craig Scroggie has been Executive Chairman at Asia Pacific Data Centre Group since October 18, 2018. He has been Managing Director at NEXTDC Limited since November 2010 and its Chief Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD2.36M) is above average for companies of similar size in the Australian market ($USD1.79M).

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


Leadership Team

Experienced Management: NXT's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: NXT's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NXT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NEXTDC Limited's 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$5.380b
  • Shares outstanding: 456.69m
  • Website: https://www.nextdc.com

Number of Employees


Location

  • NEXTDC Limited
  • GPO Box 3219
  • Brisbane
  • Queensland
  • 4001
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 07:05
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.