NEXTDC Limited Fundamental Analysis
NEXTDC Limited (NXDCF) shows moderate financial fundamentals with a PE ratio of -177.98, profit margin of -12.62%, and ROE of -1.38%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 5.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NXDCF's fundamental strength across five key dimensions:
Efficiency Score
WeakNXDCF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNXDCF trades at attractive valuation levels.
Growth Score
ModerateNXDCF shows steady but slowing expansion.
Financial Health Score
ExcellentNXDCF maintains a strong and stable balance sheet.
Profitability Score
WeakNXDCF struggles to sustain strong margins.
Key Financial Metrics
Is NXDCF Expensive or Cheap?
P/E Ratio
NXDCF trades at -177.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NXDCF's PEG of -6.07 indicates potential undervaluation.
Price to Book
The market values NEXTDC Limited at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 42.22 times EBITDA. This signals the market has high growth expectations.
How Well Does NXDCF Make Money?
Net Profit Margin
For every $100 in sales, NEXTDC Limited keeps $-12.62 as profit after all expenses.
Operating Margin
Core operations generate -5.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.38 in profit for every $100 of shareholder equity.
ROA
NEXTDC Limited generates $-0.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NEXTDC Limited generates strong operating cash flow of $184.50M, reflecting robust business health.
Free Cash Flow
NEXTDC Limited generates weak or negative free cash flow of $-1.88B, restricting financial flexibility.
FCF Per Share
Each share generates $-2.60 in free cash annually.
FCF Yield
NXDCF converts -14.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-177.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
25.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How NXDCF Stacks Against Its Sector Peers
| Metric | NXDCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -177.98 | 23.27 | Better (Cheaper) |
| ROE | -1.38% | 680.00% | Weak |
| Net Margin | -12.62% | 1953.00% | Weak |
| Debt/Equity | 0.62 | -17.04 (disorted) | Distorted |
| Current Ratio | 1.39 | 23.29 | Neutral |
| ROA | -0.82% | -758.00% (disorted) | Weak |
NXDCF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NEXTDC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.87%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
23.02%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
133.07%
Industry Style: Income, Inflation Hedge, REIT
High Growth