NEXTDC Ltd. develops data centers. The Company develops and operates carrier and systems integrator neutral data centers in Australia. NEXTDC's customers will also be able to use the data centers as connectivity and content hubs.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
| 6.23 – 13.98 | 2,751,827 | 5,781.40 | – | 95.3% | 13.96 | 4.43 | 01/03/2021 |
NextDC Ltd (NXT) develops and operates carrier and system integrator neutral data centres in Australia. NEXTDC’s customers will also be able to use the data centres as connectivity and content hubs. NXT operates data centres in five major capital cities in Australia and is a pure play on the Australia data centre market focusing on Data Centre as-a-Service (DCaaS).
As of the end of financial year 2020, 42% of sales were generated in NSW compared with 37% the prior year, 36% from Victoria, 11% from QLD, 9% from WA and 1% from the ACT. Revenue from data centre services increased 18% to $200.8 and is forecast to rise a further 23.6% to $248.25m in the 2021 financial year. Revenue has increased at a compound annual growth rate of 28% over the past six years benefiting from secular tailwinds of growth in data and cloud computing services which is expected to continue in the near-term globally. Earnings per share for 2020 was -$0.12, estimated at -$0.01 in 2021 before rising to $0.044 in 2022 that would see the stock trading on a forward P/E multiple of 287.7 in 2022.
In October NXT announced it had entered a $1.5b senior debt facility over five years to refinance $800m existing unsecured notes, $400m for future capital expenditure and $300m to replace an existing revolving credit facility. The new debt facility places NXT on a firm footing with liquidity of approximately $1.6b whilst improving financial covenants and lowering the cost of debt.
The average target price of analysts covering the stock is $13.96 with 86% of analysts rating the stock as a buy, compared to 7% as a sell and 7% as a hold.
