Overview
NEXTDC is an Australian data-centre operator whose business is built around the physical infrastructure underpinning digital services. Revenue growth of 19.40% and a profit margin of 16.53% point to an established, growing operation, while the company’s A$8.2B market capitalisation reflects investor interest in data-centre demand. The other side of that growth story is valuation: at 89.5 times earnings, expectations are high, and recent share-price performance has been weak.
NEXTDC Ltd operates data centres in Australia and the Asia-Pacific region, supplying secure facilities where customers can house and connect their IT infrastructure. Its services extend beyond colocation to connectivity, cloud interconnection, migration, disaster recovery and data-centre management platforms. This places the company within the technology sector and information technology services industry, with exposure to demand for digital infrastructure across areas such as finance, healthcare, government and enterprise technology. Its market capitalisation is A$8.2B, while supplied trailing revenue is A$496.5M.
Key facts
- Ticker
- NXT
- Exchange
- AU
- ISIN
- AU000000NXT8
- Sector
- Technology
- Industry
- Information Technology Services
- Country
- Australia
- Currency
- AUD
- Price
- A$10.29
- Previous close
- A$10.28
- Day change
- +A$0.01 (+0.10%)
- Market cap
- 7.8B
- 52W low
- A$10.03
- 52W high
- A$16.78
Price and trend
Last price: A$10.29
- Price
- A$10.29
- 52W range
- A$10.03 – A$16.78
- 50-day SMA
- A$12.69
- 200-day SMA
- A$13.46
- Price vs 50D SMA
- -18.93%
- Price vs 200D SMA
- -23.54%
Valuation
- P/E
- 85.67
- PEG
- 0.00
- EPS
- 0.12
- Beta
- 1.25
NEXTDC reported revenue growth of 19.40% and a profit margin of 16.53%, but its P/E ratio of 89.5 times indicates that the shares are valued on substantial expectations for future earnings growth. That makes delivery on expansion and customer demand important to the valuation case. The shares’ recent trading position also warrants context: A$10.74 is close to the 52-week low of A$10.37 and below the 50-day moving average of A$12.92 and 200-day average of A$13.50. The supplied target price is A$20.18, or 87.85% from the last price, but should be treated as an estimate rather than a dependable outcome.
Profitability and growth
- Revenue growth
- 19.40%
- Revenue TTM
- 496.5M
- Profit margin
- 16.53%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
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- Price
- A$10.29
- Target price
- A$20.18
- Target vs last price
- 96.06% from last price
The supplied target price is A$20.18, which is 87.85% above the last price of A$10.74. This is secondary context rather than a forecast: target prices can change and do not guarantee future performance. The company’s operating growth and infrastructure opportunity should be weighed against its high valuation and the share’s recent weakness.
Risks
NEXTDC’s data-centre model requires substantial infrastructure and ongoing execution, so development costs, project timing and the ability to secure adequate power and meet customer demand can affect financial performance. The shares also carry valuation risk: a P/E ratio of 89.5 times leaves expectations for continued growth important to the investment case. The share price is near the low end of its 52-week range and below both supplied moving averages, reflecting weak recent price momentum. A beta of 1.211 also suggests the shares have tended to move more than the broader market, though beta is not a forecast of future volatility.
FAQ
What does NEXTDC do?
NEXTDC develops and operates data centres, providing colocation space, connectivity and related digital infrastructure services to businesses and organisations.
How has NEXTDC’s revenue been growing?
The supplied figures show revenue of A$496.5M and revenue growth of 19.40%. Growth is an important part of the company’s story, although it does not by itself indicate how much cash is available for future investment or returns to shareholders.
Does NEXTDC pay a dividend?
The supplied data does not provide a dividend yield or dividend-per-share figure, so it does not support an assessment of NEXTDC as an income investment.
How does NEXTDC’s share price compare with its recent trading range?
At A$10.74, the share price is near the lower end of its 52-week range of A$10.37 to A$17.24. It is also below its 50-day and 200-day moving averages, which points to weaker recent price momentum.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
NextDC Limited (ASX: NXT) Fundamentals
