Nebius Group N.V. (NASDAQ: NBIS)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001513845
Market Cap 27.43 Bn
P/B 5.95
P/E 269.75
P/S 51.78
ROIC (Qtr) -6.40
Div Yield % 0.00
Rev 1y % (Qtr) 546.88
Total Debt (Qtr) 4.89 Bn
Debt/Equity (Qtr) 1.06
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About

Investment thesis

Bull case

  • Healthy cash reserves of 3.68B provide 150.13x coverage of short-term debt 24.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 12.43B provides 2.54x coverage of total debt 4.89B, indicating robust asset backing and low credit risk.
  • Tangible assets of 12.43B provide exceptional 7.88x coverage of deferred revenue 1.58B, showing strong service capability backing.
  • Strong free cash flow of (3.68B) provides 86.21x coverage of acquisition spending (42.70M), indicating disciplined M&A strategy.
  • Tangible assets of 12.43B provide robust 42.39x coverage of other current liabilities 293.20M, indicating strong asset backing.

Bear case

  • Operating cash flow of 384.80M barely covers its investment activities of (4.23B), with a coverage ratio of -0.09, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.23B) provide weak support for R&D spending of 177.30M, which is -23.85x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 3.68B provide limited coverage of acquisition spending of (42.70M), which is -86.14x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 384.80M provides insufficient coverage of deferred revenue obligations of 1.58B, which is 0.24x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 384.80M shows concerning coverage of stock compensation expenses of 83.20M, with a 4.62 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 3,658.84 Bn 27.68 9.08 59.29 Bn
2 META Meta Platforms, Inc. 1,611.77 Bn 26.66 8.02 83.90 Bn
3 SPOT Spotify Technology S.A. 95.06 Bn 36.53 4.70 2.22 Bn
4 BIDU Baidu, Inc. 53.09 Bn 42.00 2.90 13.66 Bn
5 NBIS Nebius Group N.V. 27.43 Bn 269.75 51.78 4.89 Bn
6 RDDT Reddit, Inc. 25.97 Bn 49.02 11.79 0.02 Bn
7 TME Tencent Music Entertainment Group 23.51 Bn 15.03 5.28 0.54 Bn
8 BILI Bilibili Inc. 12.86 Bn 118.92 3.08 1.36 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.02 0.89
EV to Cash from Ops. EV/CFO 65.42 -2.77
EV to Debt EV to Debt 5.15 30.99
EV to EBIT EV/EBIT 153.97 2.55
EV to EBITDA EV/EBITDA -177.78 4.60
EV to Free Cash Flow [EV/FCF] EV/FCF -6.84 15.68
EV to Market Cap EV to Market Cap 0.92 1.23
EV to Revenue EV/Rev 47.52 63.03
Price to Book Value [P/B] P/B 5.95 1.29
Price to Earnings [P/E] P/E 269.75 17.11
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.66
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) 2.83 -209.50
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -404.53 -31.77
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 51.07 187.77
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 124.53 -1.13
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 54.88 -497.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 125.45 20.22
EBT Growth (1y) % EBT 1y % (Qtr) 116.45 -38.13
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -32.36
FCF Growth (1y) % FCF 1y % (Qtr) -557.01 25.84
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 660.67 22.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.41 1.45
Current Ratio Curr Ratio (Qtr) 3.08 3.29
Debt to Equity Ratio Debt/Equity (Qtr) 1.06 -0.34
Interest Cover Ratio Int Coverage (Qtr) 2.83 -209.50
Times Interest Earned Times Interest Earned (Qtr) 2.83 -209.50
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 116.70 -4,353.96
EBIT Margin % EBIT Margin % (Qtr) 30.86 -4,865.94
EBT Margin % EBT Margin % (Qtr) 19.95 -5,084.75
Gross Margin % Gross Margin % (Qtr) 68.60 58.51
Net Profit Margin % Net Margin % (Qtr) 19.20 -5,086.49