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Nebius Group N.V. (NBIS)
:NBIS
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Nebius Group
(NASDAQ:NBIS)72Outperform
Positive Factors
Market Position
Nebius Group is emerging as one of the first true alternatives to hyperscaler-dominated AI compute, offering dedicated AI compute with transparent pricing and scalable infrastructure designed specifically for AI.
Valuation
Nebius Group's valuation is considered undervalued, with a conservative sum-of-the-parts valuation suggesting a $12 billion enterprise value.
Negative Factors
Market Conditions
The market is currently in a risk-off environment where growth names such as NBIS are most prone to experiencing selling pressure.
Nebius Group (NBIS) vs. S&P 500 (SPY)
Market Cap
$6.97B
Dividend YieldN/A
Average Volume (3M)16.23M
Price to Earnings (P/E)189.8
Beta (1Y)0.73
Revenue Growth-70.07%
EPS Growth-80.18%
CountryUS
Employees26,361
SectorCommunication Services
Sector Strength85
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)-0.19
Shares Outstanding199,755,740
10 Day Avg. Volume19,080,885
30 Day Avg. Volume16,232,293
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)353.03
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.00Price Target Upside102.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Nebius Group Business Overview & Revenue Model
Company DescriptionNetherlands-based Yandex NV is an internet and technology company that provides search engines and online services. The company offers search, location-based, personalized, and mobile services that enable users to find information, communicate and connect over the Internet from desktops and mobile devices.
How the Company Makes Moneynull
Nebius Group Financial Statement Overview
Summary
Nebius Group is experiencing healthy revenue growth, yet profitability pressures are evident, particularly in the latest TTM data. The balance sheet reflects strong equity and low leverage, providing financial resilience. However, cash flow management appears to be an area needing attention, as indicated by missing free cash flow data.Income Statement
Nebius Group shows a consistent revenue growth trajectory, with a significant increase from 2022 to TTM (Trailing-Twelve-Months). However, the company has been facing profitability challenges, evidenced by a negative EBIT and net income in the TTM period, indicating potential operational inefficiencies or high costs.78
Positive
Balance Sheet
The company maintains a strong equity position with a high equity ratio, suggesting financial stability. The debt-to-equity ratio is low, reflecting conservative leverage, which reduces financial risk. However, the return on equity has fluctuated, indicating varying profitability levels.85
Very Positive
Cash Flow
Operating cash flow remains positive, but the free cash flow is not available for recent periods, limiting comprehensive cash flow analysis. The operating cash flow to net income ratio is robust, but the inability to maintain positive free cash flow highlights potential cash management challenges.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.43B | 9.04B | 7.00B | 4.78B | 2.93B | 2.83B | Gross Profit |
| 1.84B | 4.97B | 3.87B | 2.44B | 1.78B | 1.93B | EBIT |
| -152.08M | 321.56M | 177.66M | ― | 210.62M | 395.69M | EBITDA |
| 164.15M | 1.32B | 1.72B | 512.37M | 930.84M | 622.93M | Net Income Common Stockholders |
| -60.85M | 224.49M | 529.73M | ― | 332.14M | 204.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.16B | 1.16B | 1.13B | 1.44B | 3.20B | 1.42B | Total Assets |
| 8.89B | 8.89B | 8.28B | 6.91B | 6.93B | 4.69B | Total Debt |
| 2.36B | 2.36B | 1.39B | 1.89B | 1.46B | 370.55M | Net Debt |
| 1.27B | 1.27B | 276.58M | 824.50M | ― | -538.35M | Total Liabilities |
| 5.54B | 5.54B | 3.74B | 3.25B | 2.25B | 993.90M | Stockholders Equity |
| 3.35B | 3.35B | 4.25B | 3.46B | 4.37B | 3.14B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | ― | ― | ― | 108.23M | 384.02M | Operating Cash Flow |
| 189.72M | 794.06M | 559.57M | 124.62M | 438.20M | 714.99M | Investing Cash Flow |
| 0.00 | -1.20B | ― | 294.94M | ― | -791.63M | Financing Cash Flow |
| 465.23M | 468.17M | ― | ― | 1.88B | -38.57M |
Nebius Group Technical Analysis
Negative
29.61
Price Trends
34.34
Negative
28.59
Positive
23.76
Positive
Market Momentum
-0.97
Positive
40.51
Neutral
9.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NBIS, the sentiment is Negative. The current price of 29.61 is below the 20-day moving average (MA) of 37.83, below the 50-day MA of 34.34, and above the 200-day MA of 23.76, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 9.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NBIS.
Nebius Group Risk Analysis
Nebius Group disclosed 53 risk factors in its most recent earnings report. Nebius Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nebius Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.16T | 36.91 | 20.72% | ― | 10.99% | 91.61% | |
81 Outperform | $2.89T | 31.30 | 30.64% | 0.80% | 15.04% | 12.38% | |
75 Outperform | $440.44B | 38.54 | 132.00% | 0.99% | 6.40% | 12.83% | |
74 Outperform | $2.09T | 21.17 | 30.80% | 0.35% | 13.89% | 38.99% | |
72 Outperform | $6.97B | 189.78 | -9.36% | ― | -70.07% | -80.18% | |
67 Neutral | $234.79B | 39.40 | 22.06% | 2.65% | 1.45% | -20.56% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% |
* Communication Services Sector Average
Performance Comparison
NBIS
Nebius Group
29.61
10.67
56.34%
AMZN
Amazon
203.80
29.68
17.05%
GOOGL
Alphabet Class A
170.92
38.73
29.30%
IBM
International Business Machines
253.21
67.51
36.35%
MSFT
Microsoft
388.61
-10.99
-2.75%
ORCL
Oracle
157.47
47.72
43.48%
Nebius Group Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -33.95% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
Nebius demonstrated significant growth and strategic advancements by going public, expanding its data center and GPU capacity, and achieving strong revenue projections. Despite facing challenges with longer deal lead times, customer churn, and pricing pressure, the company remains optimistic about achieving its ambitious revenue targets and further expansion in 2025.Highlights
Successful Public Offering and Capital Raise
Nebius became the first publicly traded AI specialized cloud company in October 2024 and raised $700 million in capital in an oversubscribed offering in December, involving notable investors like NVIDIA, Accel, and Orbis.
Data Center and GPU Deployment Expansion
The company expanded its data center footprint and GPU deployments in Europe and the US, with a projected capacity of 100 megawatts by the end of 2025, scalable to over 300 megawatts.
Strong Revenue Growth and Future Projections
Projected March 2025 annualized run rate revenue is expected to be at least $220 million, with a December 2025 run rate revenue estimate of $750 million to $1 billion.
Strategic Partnerships and Business Unit Successes
Avride signed contracts with Uber and Grubhub, and Toloka's revenue grew by 140% year-over-year. TripleTen doubled new student additions, maintaining its position as a leading IT bootcamp in the US.
Lowlights
Longer Lead Times for Deals
There were timing issues with customer deals in Q4 2024, as lead times became longer due to more selective customers and in-depth proof-of-concept testing.
Customer Churn and Revenue Timing Issues
The company experienced customer churn and revenue timing issues in Q4 2024, with some large customers completing their engagements without immediate replacements.
Pressure on H100 Pricing
The company faced price pressure on H100 GPUs in Q4 2024, partly expected due to the launch of H200s.
Company Guidance
During Nebius Group's fourth quarter and full year 2024 earnings call, CEO Arkady Volozh presented an optimistic outlook for 2025, emphasizing robust growth metrics and strategic initiatives. The company resumed public trading in October and secured $700 million in capital through an oversubscribed offering. They ended 2024 with $2.4 billion in cash, including the recent capital raise. In Q4 alone, Nebius launched a new AI cloud platform, migrated customers, and debuted their Inference-as-a-Service platform, AI Studio. Their March annualized run rate revenue is projected at a minimum of $220 million, with expectations to reach $750 million to $1 billion by December 2025. Strategic focus areas include expanding data center capacity in the US and Europe, leveraging next-generation GPU technology, and building out sales and marketing teams, particularly in the US. The company also highlighted notable achievements in its business units, including Avride's partnerships with Uber and Grubhub, Toloka's 140% revenue growth, and TripleTen's doubling of new student additions in 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.