# Nextdc (NXT.AU)

Canonical: https://gigainvestors.com/s/NXT.AU

Analysis as of: 2026-10-16T07:37:44.095Z. Financial observations: FY2011–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 8.86 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 6

- Operating margin variation: 0.75×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.22×

- FY2018: 0.18×

- FY2019: 0.19×

- FY2020: 0.17×

- FY2021: 0.14×

- FY2022: 0.19×

- FY2023: 0.14×

- FY2024: 0.07×

- FY2025: -0.01×

- FY2026: -0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 43.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 1.6%

- ROIC, second-lowest year: -0.1%

- Typical minus recent gross margin: 43.4 pp

- Typical gross margin (annual median): 44.9%

- Recent gross margin (lower of latest and 3-year median): 1.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 200.8%

- ROIC including acquisitions, ten-year median: -12.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.8%

- FY2018: 2.3%

- FY2019: 1.9%

- FY2020: 1.6%

- FY2021: 1.5%

- FY2022: 2.3%

- FY2023: 1.3%

- FY2024: 0.6%

- FY2025: -0.1%

- FY2026: -0.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD -3.0B

- Net income, five-year total: AUD -39M

- Return on incremental invested capital: -0.7%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 5.4 pp

- Working capital / revenue, final three-year average: 3.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: AUD -154M

- FY2023: AUD -41M

- FY2024: AUD -463M

- FY2025: AUD -1.3B

- FY2026: AUD -1.1B

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.3% vs -0.1%

- Per-share earnings: 0.02 to -0.07 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.3%

- Ordinary dilution, 5-year annual growth: 7.2%

- Market cap gain: AUD 8.4B

- Cumulative retained earnings: AUD -70M

- Diluted shares, 10-year annual growth: 9.3%

- Diluted shares, 5-year annual growth: 7.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: AUD -0.09

- Per-share value, starting three-year median: AUD 0.02

- Per-share value, ending three-year median: AUD -0.07

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 0.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 62M

- Cumulative net income, 10 years: AUD -88M

- ROIC, first three-year median: 2.3%

- ROIC, last three-year median: -0.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.08

- FY2018: AUD 0.02

- FY2019: AUD -0.03

- FY2020: AUD -0.10

- FY2021: AUD -0.05

- FY2022: AUD 0.02

- FY2023: AUD -0.05

- FY2024: AUD -0.07

- FY2025: AUD -0.09

- FY2026: AUD 0.12

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -0.2%

- Receivables to sales index (DSRI): 2.70×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.22×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.6%

- FY2018: -2.2%

- FY2019: -2.7%

- FY2020: -3.7%

- FY2021: -5.7%

- FY2022: -3.8%

- FY2023: -4.0%

- FY2024: -3.3%

- FY2025: -5.0%

- FY2026: -0.2%

## Holders

## Price story

Down 50% since Mar 2024 · sales +16.2%

Story as of 2026-10-16T10:00:09.424Z; price observation 2026-10-15.

- 2026-04-20: NEXTDC Raises A$1.5 Billion As Order Book Jumps 83% On AI Demand ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/nextdc-raises-1-5-billion-193406058.html))

### Sales · FY2025–2026

sales +16.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 118M 

- FY2018: AUD 153M 

- FY2019: AUD 170M 

- FY2020: AUD 201M 

- FY2021: AUD 246M 

- FY2022: AUD 291M 

- FY2023: AUD 362M 

- FY2024: AUD 404M 

- FY2025: AUD 427M 

- FY2026: AUD 496M 

### Gross margin · FY2026

gross margin 1.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 66.6% 

- FY2018: 64.3% 

- FY2019: 62.5% 

- FY2020: 24.2% 

- FY2021: 22.0% 

- FY2022: 27.3% 

- FY2023: 21.0% 

- FY2024: 76.1% 

- FY2025: 82.0% 

- FY2026: 1.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are AUD 496.5 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); FY2026: revenue 496492000; grossProfit 7123999; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NXT.AU: NEXTDC Limited engages in the development and operation of independent data centers in Australia and the Asia-Pacific region. The company is involved in the design, development, operations, and monitoring of data center infrastructure. It also provides colocation, mission critical spaces, data center migration and relocation, environmental sustainability, tailored infrastructure, security and compliance, edge data centers, self service portals, and disaster recovery and business continuity. In addition, the company offers customer IT equipment, such as servers, storage, and network equipment; data hall services; connectivity and interconnection, including carriers, cloud on-ramps, and internet exchanges; digital services enabled comprising cloud, AI, analytics, and enterprise platforms; and critical services and communities consisting of digital economy, healthcare, finance, government, and everyday services. Further, it provides ONEDC, a customer-facing and data center services infrastructure management platform; AXON, a virtual interconnection platform; and NEXTGOV, a strategy guide for agency CIOs, CTOs, and security leaders in the federal government sector. NEXTDC Limited was incorporated in 2010 and is headquartered in Brisbane, Australia.

### Why customers stay

Margins ranged from 1.4% to 82% during 2024–26; it earns 1.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); FY2024: grossProfit / revenue = 76.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); FY2025: grossProfit / revenue = 82%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); FY2026: grossProfit / revenue = 1.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); 10-year return on capital observations [[2017,0.05759578298346655],[2018,0.02289835406425838],[2019,0.018631562336944102],[2020,0.01619104697967212],[2021,0.015034975850581325],[2022,0.023017023975558423],[2023,0.013377977208459624],[2024,0.005947760031061889],[2025,-0.0005921917373952419],[2026,-0.004213432059063828]]; median 0.01561301141512672. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back AUD 29 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); FY2017: growth capex 108552590.41974321; upkeep 34997409.58025679; owner earnings 11340590.41974321. Growth capex / owner earnings = 9.572040467201814.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); Dividend observations: [[2017,18489000],[2018,0],[2019,0],[2020,387000],[2021,54386000],[2022,0],[2023,301124000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); FY2026: cash repurchases 29049000 AUD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NXT.AU SharesStats.PercentInsiders = 0.391 percentage points; cache date 2026-10-16.

### What the price says

The price is 11.8 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:44.095Z); Closing price 8.86 AUD; reporting-to-trading FX 1; FY2026 annual sales per share 0.7501548305234684; price multiple 11.810895083908703. FY2026 cash earnings/share -1.6064092726953971. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 3.65 per share

- 2016-11: AUD 3.13 per share

- 2016-12: AUD 3.61 per share

- 2017-01: AUD 3.05 per share

- 2017-02: AUD 3.68 per share

- 2017-03: AUD 4.04 per share

- 2017-04: AUD 4.12 per share

- 2017-05: AUD 4.42 per share

- 2017-06: AUD 4.47 per share

- 2017-07: AUD 4.07 per share

- 2017-08: AUD 4.54 per share

- 2017-09: AUD 4.32 per share

- 2017-10: AUD 5.11 per share

- 2017-11: AUD 5.77 per share

- 2017-12: AUD 5.94 per share

- 2018-01: AUD 5.65 per share

- 2018-02: AUD 6.61 per share

- 2018-03: AUD 6.48 per share

- 2018-04: AUD 6.83 per share

- 2018-05: AUD 7.42 per share

- 2018-06: AUD 7.49 per share

- 2018-07: AUD 7.14 per share

- 2018-08: AUD 7.02 per share

- 2018-09: AUD 6.44 per share

- 2018-10: AUD 5.82 per share

- 2018-11: AUD 6.38 per share

- 2018-12: AUD 6.05 per share

- 2019-01: AUD 6.79 per share

- 2019-02: AUD 6.18 per share

- 2019-03: AUD 6.25 per share

- 2019-04: AUD 6.33 per share

- 2019-05: AUD 6.51 per share

- 2019-06: AUD 6.43 per share

- 2019-07: AUD 6.82 per share

- 2019-08: AUD 5.94 per share

- 2019-09: AUD 6.10 per share

- 2019-10: AUD 6.35 per share

- 2019-11: AUD 6.55 per share

- 2019-12: AUD 6.52 per share

- 2020-01: AUD 7.52 per share

- 2020-02: AUD 7.82 per share

- 2020-03: AUD 8.84 per share

- 2020-04: AUD 8.79 per share

- 2020-05: AUD 9.14 per share

- 2020-06: AUD 9.79 per share

- 2020-07: AUD 11.28 per share

- 2020-08: AUD 12.09 per share

- 2020-09: AUD 12.17 per share

- 2020-10: AUD 12.62 per share

- 2020-11: AUD 11.15 per share

- 2020-12: AUD 12.12 per share

- 2021-01: AUD 11.49 per share

- 2021-02: AUD 11.10 per share

- 2021-03: AUD 10.32 per share

- 2021-04: AUD 11.48 per share

- 2021-05: AUD 10.78 per share

- 2021-06: AUD 11.75 per share

- 2021-07: AUD 12.63 per share

- 2021-08: AUD 13.12 per share

- 2021-09: AUD 11.92 per share

- 2021-10: AUD 11.63 per share

- 2021-11: AUD 11.99 per share

- 2021-12: AUD 12.67 per share

- 2022-01: AUD 10.57 per share

- 2022-02: AUD 10.53 per share

- 2022-03: AUD 11.55 per share

- 2022-04: AUD 11.18 per share

- 2022-05: AUD 10.91 per share

- 2022-06: AUD 10.54 per share

- 2022-07: AUD 11.67 per share

- 2022-08: AUD 10.39 per share

- 2022-09: AUD 8.74 per share

- 2022-10: AUD 8.24 per share

- 2022-11: AUD 9.78 per share

- 2022-12: AUD 9.02 per share

- 2023-01: AUD 9.80 per share

- 2023-02: AUD 10.18 per share

- 2023-03: AUD 10.36 per share

- 2023-04: AUD 11.37 per share

- 2023-05: AUD 12.71 per share

- 2023-06: AUD 12.58 per share

- 2023-07: AUD 12.75 per share

- 2023-08: AUD 13.54 per share

- 2023-09: AUD 12.39 per share

- 2023-10: AUD 11.75 per share

- 2023-11: AUD 13.03 per share

- 2023-12: AUD 13.73 per share

- 2024-01: AUD 14.02 per share

- 2024-02: AUD 17.65 per share

- 2024-03: AUD 17.79 per share

- 2024-04: AUD 16.69 per share

- 2024-05: AUD 17.79 per share

- 2024-06: AUD 17.63 per share

- 2024-07: AUD 16.75 per share

- 2024-08: AUD 16.95 per share

- 2024-09: AUD 17.50 per share

- 2024-10: AUD 16.42 per share

- 2024-11: AUD 16.27 per share

- 2024-12: AUD 15.07 per share

- 2025-01: AUD 14.85 per share

- 2025-02: AUD 13.34 per share

- 2025-03: AUD 11.31 per share

- 2025-04: AUD 11.83 per share

- 2025-05: AUD 13.11 per share

- 2025-06: AUD 14.50 per share

- 2025-07: AUD 14.51 per share

- 2025-08: AUD 16.50 per share

- 2025-09: AUD 16.92 per share

- 2025-10: AUD 15.76 per share

- 2025-11: AUD 13.57 per share

- 2025-12: AUD 12.53 per share

- 2026-01: AUD 13.32 per share

- 2026-02: AUD 13.88 per share

- 2026-03: AUD 11.32 per share

- 2026-04: AUD 14.24 per share

- 2026-05: AUD 15.24 per share

- 2026-06: AUD 14.58 per share

- 2026-07: AUD 13.36 per share

- 2026-08: AUD 13.81 per share

- 2026-09: AUD 10.83 per share

- 2026-10: AUD 9.38 per share

## Annual estimated value (AUD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations