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Northern Data AG (DE:NB2)
XETRA:NB2
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Northern Data AG
(XETRA:NB2)
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Rating:42Neutral
Price Target:
€16.50
▼(-5.98% Downside)
Northern Data AG's overall stock score is primarily impacted by its financial performance, which is facing significant challenges with negative profit margins and cash flow issues. Technical analysis indicates bearish momentum, further weighing on the score. The absence of valuation metrics adds uncertainty, contributing to a lower overall score.
Northern Data AG (NB2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)115.75K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue GrowthN/A
EPS GrowthN/A
CountryDE
Employees157
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding64,196,680
10 Day Avg. Volume164,938
30 Day Avg. Volume115,749
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.00Price Target Upside53.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Northern Data AG Business Overview & Revenue Model
Company DescriptionNorthern Data AG (NB2) is a leading provider of high-performance computing solutions, specializing in the development and operation of large-scale data centers. The company primarily serves sectors such as blockchain technology, artificial intelligence, and scientific computing, leveraging its robust infrastructure to deliver efficient and scalable computing power. Northern Data's core products include dedicated computing solutions, cloud services, and customized hardware for enterprise clients, enabling them to handle complex computational tasks effectively.
How the Company Makes MoneyNorthern Data AG generates revenue primarily through the provision of computing power and infrastructure services. The company operates on a B2B model, where it charges clients for access to its high-performance computing resources, either on a subscription basis or through usage-based billing. Key revenue streams include contracts with blockchain mining companies, data analytics firms, and enterprises requiring AI processing capabilities. Additionally, partnerships with technology providers and collaborations with research institutions enhance its offerings and create new revenue opportunities. The company's focus on scalable solutions and innovative technology also positions it favorably in the growing market for data processing and cloud computing services.
Northern Data AG Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Northern Data's significant growth in cloud revenue and profitability, supported by successful GPU deployments and strong financial positioning. However, challenges in GPU deployment delays and customer diversification were noted. Despite these challenges, the company's strategic initiatives and financial strength indicate a positive outlook.Q4-2024 Updates
Positive Updates
Record Cloud Revenue Growth
Achieved a record cloud revenue of EUR 121 million, up 722% from 2023, driven by the deployment of Europe's largest pool of GPUs.
Significant Revenue and Profitability Increase
Revenue growth of 159% year-on-year to EUR 200.5 million, with adjusted EBITDA increasing from negative EUR 5.5 million in 2023 to EUR 60 million to EUR 80 million in 2024.
Successful GPU Deployment
Acquired over 22,000 NVIDIA H100 and H200 GPUs, contributing to sequential revenue growth each quarter of 2024.
Strong Financial Position
Well-funded with EUR 120 million in cash and cash equivalents at year-end, supporting further investments and growth.
Operational Improvements in Mining
Increased Bitcoin mining capacity to 7.9 exahash, resulting in 88% year-on-year revenue growth in Peak Mining in Q4.
Expansion in the United States
Expansion plans include new facilities in Georgia and Pittsburgh, Pennsylvania, to support growing HPC demand.
Negative Updates
Challenges in GPU Deployment
Faced delays in finalizing highly complex clusters and component supplies, impacting the speed of GPU ramp-up.
Limited Customer Diversification
Revenue in Q4 concentrated among nine customers, indicating a need for further customer base diversification.
Operating Cash Flow Challenges
Full year operating cash flow was an outflow of EUR 39 million, though positive cash flow is expected for 2025.
Company Guidance
During the Q4 2024 earnings call for Northern Data (NB2.DE), the executives provided comprehensive guidance on the company's financial and strategic performance. They reported a significant revenue increase of 159% year-on-year, reaching EUR 200.5 million, and a remarkable adjusted EBITDA growth from negative EUR 5.5 million in 2023 to a range of EUR 60 million to EUR 80 million in 2024. The cloud revenue was highlighted as a key driver, contributing EUR 121 million for the year, marking a 722% increase from 2023. The company's Bitcoin mining capacity also rose to 7.9 exahash, leading to an 88% year-on-year growth in mining revenue for Q4. Looking forward, Northern Data aims to expand its AI cloud infrastructure, plans to fully deploy its GPUs by the end of Q1 2025, and anticipates positive operating cash flow for the coming year, supported by a robust cash position of EUR 120 million. The executives emphasized their strategic focus on leveraging partnerships, enhancing data center capabilities, and maintaining a strong governance framework to sustain growth and solidify their leadership in the AI market.Northern Data AG Financial Statement Overview
Summary
Northern Data AG is facing considerable financial challenges with pervasive profitability issues and cash flow constraints. Despite revenue growth, the company struggles with negative profit margins and cash flow deficits, posing risks to long-term sustainability. The balance sheet shows moderate leverage, but the lack of profitability and cash flow generation is concerning.Income Statement
Northern Data AG's income statement shows significant challenges. Gross profit margin is negative due to high costs compared to revenue. Net profit margin is also negative, indicating losses. Despite a notable revenue growth from the previous year, the EBIT and EBITDA margins are negative, pointing to operational inefficiencies and high expense levels.30
Negative
Balance Sheet
The balance sheet reveals a moderately stable financial position with a debt-to-equity ratio of 0.85, suggesting manageable leverage. However, the equity ratio of 50.6% indicates a reliance on liabilities. The ROE is negative, reflecting recent losses. While the company has substantial assets, profitability remains a concern.45
Neutral
Cash Flow
Cash flow analysis highlights significant issues, with a negative free cash flow indicating insufficient cash generation to cover expenses. Both the operating cash flow to net income and free cash flow to net income ratios are unfavorable, suggesting operational challenges in converting revenues into cash.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 77.53M | 200.27M | 77.53M | 193.29M | 189.86M | 16.38M |
| Gross Profit | -374.00K | -32.69M | -374.00K | 64.25M | 101.75M | -15.07M |
| EBITDA | -27.15M | 43.06M | -27.15M | -169.49M | 388.10M | -65.72M |
| Net Income | -151.06M | -127.44M | -151.06M | -265.77M | 287.16M | -84.26M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 1.66B | 1.04B | 450.59M | 798.77M | 527.52M |
| Cash, Cash Equivalents and Short-Term Investments | 242.99M | 120.26M | 242.99M | 39.88M | 221.60M | 73.86M |
| Total Debt | 179.53M | 713.66M | 179.53M | 10.65M | 85.94M | 42.51M |
| Total Liabilities | 300.70M | 819.46M | 300.70M | 91.18M | 186.50M | 350.99M |
| Stockholders Equity | 734.38M | 839.83M | 734.38M | 359.41M | 612.27M | 176.52M |
Cash Flow | ||||||
| Free Cash Flow | -116.09M | -1.04B | -116.09M | -99.73M | -112.80M | -34.94M |
| Operating Cash Flow | -17.60M | -58.39M | -17.60M | 960.00K | 88.07M | 183.48M |
| Investing Cash Flow | -84.67M | -950.27M | -84.67M | -95.22M | 126.62M | -211.58M |
| Financing Cash Flow | 305.11M | 885.53M | 305.11M | -82.91M | -69.03M | 99.06M |
Northern Data AG Technical Analysis
Negative
17.55
Price Trends
19.01
Negative
22.21
Negative
29.10
Negative
Market Momentum
-0.27
Negative
44.66
Neutral
32.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NB2, the sentiment is Negative. The current price of 17.55 is below the 20-day moving average (MA) of 18.00, below the 50-day MA of 19.01, and below the 200-day MA of 29.10, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:NB2.
Northern Data AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €533.84M | 25.52 | 14.56% | ― | 24.02% | 74.15% | |
69 Neutral | €802.07M | 43.11 | 3.48% | 3.82% | -0.29% | -48.23% | |
67 Neutral | €478.08M | 12.34 | 17.14% | 2.75% | 5.12% | -20.33% | |
67 Neutral | €642.73M | 52.44 | 6.92% | 0.77% | 12.68% | ― | |
66 Neutral | €708.09M | 16.86 | 26.06% | 1.90% | 5.36% | -24.91% | |
42 Neutral | $1.12B | ― | ― | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.