Morningstar

Nextdc Ltd NXT

Morningstar Rating
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Stock XASX Rating as of
A$17.50 +0.28 (1.63%)
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As of Delayed Price Closed

Company Report

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NextDC's Sees Wall of Demand Coming From AI

Dan Baker

NextDC has a big opportunity in front of it, with ample room to increase its data center footprint within 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 the firm’s importance for cloud connectivity in Australia to grow.

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Price vs Fair Value

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NXT is trading at a 59% premium.
Price
A$17.50
Fair Value
A$46.00
Uncertainty
Medium
1-Star Price
A$48.40
5-Star Price
A$5.80
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 artificial intelligence 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.

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Trading Information

Previous Close Price
A$17.22
Day Range
A$17.23–17.50
52-Week Range
A$11.46–18.58
Bid/Ask
A$17.34 / A$17.50
Market Cap
A$11.09 Bil
Volume/Avg
2.0 Mil / 2.6 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
22.94
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
—

Company Profile

NextDC operates 13 data centers across five major Australian cities with a focus on colocation of and interconnection between enterprises, global cloud, and ICT providers and telecommunication networks. It has another 7 data centers in development or planning stage. 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. Colocation services allow enterprises to enhance security of data transmission and reduce latency, that is, speed up the transfer of data. NextDC services tenants of all sizes.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Growth
Total Number of Employees
271
Website
https://www.nextdc.com

Competitors

Valuation

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Metric
NXT
AJBU
DLR
Price/Earnings (Normalized)
 —24.25208.78
Price/Book Value
 2.951.582.65
Price/Sales
 22.9412.549.42
Price/Cash Flow
 72.0119.7524.31
Price/Earnings
NXT
AJBU
DLR

Financial Strength

Metric
NXT
AJBU
DLR
Quick Ratio
 8.681.160.83
Current Ratio
 8.861.170.83
Interest Coverage
 −0.483.443.68
Quick Ratio
NXT
AJBU
DLR

Profitability

Metric
NXT
AJBU
DLR
Return on Assets (Normalized)
 −1.03%3.54%3.68%
Return on Equity (Normalized)
 −1.64%6.02%8.71%
Return on Invested Capital (Normalized)
 −1.20%4.99%5.10%
Return on Assets
NXT
AJBU
DLR

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