Fact based stock research
NEXTDC (ASX:NXT)
AU000000NXT8
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
NEXTDC stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), NEXTDC (Internet Services & Infrastructure, Australia) shares have lower financial characteristics compared with similar stocks. Shares of NEXTDC are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives), and are riskily financed (Safety Rank of 15, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more
RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on NEXTDC's financial characteristics. As the company NEXTDC shows low value with an Obermatt Value Rank of 23 (77% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 15 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for NEXTDC, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: NEXTDC
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 11 |
|
25 |
|
35 |
|
23 |
|
| GROWTH | ||||||||
| GROWTH | 75 |
|
31 |
|
9 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 15 |
|
16 |
|
26 |
|
15 |
|
| SENTIMENT | ||||||||
| SENTIMENT | 45 |
|
60 |
|
31 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | 19 |
|
8 |
|
4 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), NEXTDC (Internet Services & Infrastructure, Australia) shares have lower financial characteristics compared with similar stocks. Shares of NEXTDC are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives), and are riskily financed (Safety Rank of 15, which means above-average debt burdens) but show above-average growth (Growth Rank of 57). ...read more
RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on NEXTDC's financial characteristics. As the company NEXTDC shows low value with an Obermatt Value Rank of 23 (77% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 57% of comparable companies (Obermatt Growth Rank is 57). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 15 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for NEXTDC, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 11 |
|
25 |
|
35 |
|
23 |
|
| GROWTH | ||||||||
| GROWTH | 75 |
|
31 |
|
9 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 15 |
|
16 |
|
26 |
|
15 |
|
| COMBINED | ||||||||
| COMBINED | 8 |
|
1 |
|
6 |
|
12 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 23 (worse than 77% compared with alternatives), NEXTDC shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for NEXTDC. Price-to-Profit (also referred to as price-earnings, P/E) is 55 which means that the stock price compared with what market professionals expect for future profits is lower than for 55% of comparable companies, indicating a good value concerning NEXTDC's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 73, which means that the stock price is lower as regards to invested capital than for 73% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 97% of alternatives (only 3% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 23, is a sell recommendation based on NEXTDC's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 10 |
|
3 |
|
5 |
|
3 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 3 |
|
55 |
|
55 |
|
55 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 67 |
|
55 |
|
78 |
|
73 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 11 |
|
25 |
|
35 |
|
23 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), NEXTDC shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for NEXTDC. Sales Growth has a rank of 75 which means that currently, professionals expect the company to grow more than 75% of its competitors. Capital Growth is also above 8% of competitors with a rank of 82. But Profit Growth only has a rank of 8, which means that currently professionals expect the company to grow its profits less than 92% of its competitors. And Stock Returns have also been below average with a rank of only 23. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 79 |
|
62 |
|
70 |
|
75 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 86 |
|
4 |
|
8 |
|
8 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 37 |
|
10 |
|
1 |
|
82 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 53 |
|
91 |
|
41 |
|
23 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 75 |
|
31 |
|
9 |
|
57 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 15 (better than 15% compared with alternatives), the company NEXTDC has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of NEXTDC is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for NEXTDC. Liquidity is at 19, meaning that the company generates less profit to service its debt than 81% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 23, meaning the company has an above-average debt-to-equity ratio. It has more debt than 77% of its competitors. Finally, Refinancing is at a rank of 34 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 66% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 15 (worse than 85% compared with alternatives), NEXTDC has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of NEXTDC because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 19 |
|
14 |
|
24 |
|
23 |
|
| REFINANCING | ||||||||
| REFINANCING | 62 |
|
48 |
|
67 |
|
34 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 10 |
|
26 |
|
19 |
|
19 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 15 |
|
16 |
|
26 |
|
15 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
97 |
|
91 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | 50 |
|
44 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | 7 |
|
1 |
|
4 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | 47 |
|
78 |
|
38 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | 45 |
|
60 |
|
31 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for NEXTDC from July 31, 2025.
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