Nextdc Ltd NXT

Morningstar Rating
A$10.64 +0.04 (0.33%)
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Company Report

NextDC Gearing Up For Very Strong AI Driven Growth in Fiscal 2027

NextDC has a big opportunity in front of it, with ample room to increase its data center footprint in Australia and the Asia-Pacific region and reap the financial benefits that its larger scale should provide. The firm is already a primary provider of cloud on-ramps to the biggest global cloud providers, and we expect its importance for cloud connectivity and artificial intelligence compute power in Australia to grow.

Price vs Fair Value

NXT is trading at a LOCK|k@D?%> premium.
Price
A$10.60
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

NextDC is well placed to benefit from industry megatrends, including the growing adoption of cloud computing, the Internet of Things, and AI, leading to exponential growth in data creation.

Bears

Rapid technological advancements could reduce the space required by tenants to store data and leave NextDC with excess capacity and margin deterioration.

Trading Information

Previous Close Price
A$10.60
Day Range
A$10.54–10.76
52-Week Range
A$10.37–16.97
Bid/Ask
A$10.63 / A$10.64
Shares Outstanding
760.49M
Market Cap
A$8.08B
Volume/Avg
809,483 / 3M

Key Statistics

Price/Earnings (Normalized)
290.28
Price/Sales
14.36
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
—

Company Profile

NextDC operates 17 data centers in Australian cities with a focus on co-location and interconnection between enterprises, global cloud, and ICT providers and telecommunication networks. It has another two data centers in Asia and 13 data centers in development or planning stage in Australia, Asia, and New Zealand. NextDC provides physical space, cooling, power, and security services and offers optional technical and project management support. The company’s tenants store their servers within the data center and can connect to each other, to and between global public cloud providers and telecommunication network providers via physical and virtual connections. Co-location services allow enterprises to enhance the security of data transmission and reduce latency.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Core
Total Number of Employees
271

Competitors

Valuation

Metric
NXT
AJBU
EQIX
Price/Earnings (Normalized)
290.2816.6560.94
Price/Book Value
1.321.256.95
Price/Sales
14.3610.9110.18
Price/Cash Flow
71.3815.6122.92
Price/Earnings
NXT
AJBU
EQIX

Financial Strength

Metric
NXT
AJBU
EQIX
Quick Ratio
1.801.510.91
Current Ratio
1.861.581.13
Interest Coverage
−0.839.513.70
Quick Ratio
NXT
AJBU
EQIX

Profitability

Metric
NXT
AJBU
EQIX
Return on Assets (Normalized)
1.07%7.02%5.31%
Return on Equity (Normalized)
1.71%11.18%14.87%
Return on Invested Capital (Normalized)
0.20%7.90%6.74%
Return on Assets
NXT
AJBU
EQIX

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