DASHBOARD: Digital infrastructure valuation comps for August 2024
- Publisher : Venture Insights
- Publish Date : September 5, 2024
This Digital Infrastructure Valuation report provides a comprehensive analysis of key financial metrics for digital infrastructure stocks listed in Australia, New Zealand, and the broader regional market. It includes detailed visualisations of monthly and annual share price movements, key earnings multiples, and forward earnings multiples compared to forward growth estimates. Additionally, it tracks share price trends over the past twelve months, offering valuable insights for market participants.
Key developments
Overall, most listed digital infrastructure stocks in the region are up over the last year, but with wide spreads in performance among the group. Growth in cloud and AI is improving sentiment towards DC stocks, but economic growth is expected to be sluggish relative to previous years, creating uncertain performance for other Digital Infrastructure equities.
Macquarie Technology Group
Macquarie Technology Group’s stock fell 8.5% over the last month, after the company released its full year FY24 results which featured revenue growth of 5% YoY from $363m of revenue, and EBITDA growth of 6% YoY from $109m of EBITDA. Slowing revenue growth, or lower-than-expected revenue growth a reason for the decline. During FY24, the company raised $100m of capital from institutional inventors.
Chorus
Chorus’ stock increased by around 9% over the last month. The company released its full year FY24 results, which saw an increase of 53,000 fibre connections in its network over the year. Chorus’ network traffic was up almost 8% YoY, revenue up 3% YoY from NZ$1.01b of revenue, and EBITDA growth of 4% YoY from NZ$700m of EBITDA. The company noted it is on track to retire its copper network in urban areas by the end of FY26.
Uniti Group (US)
US -based Uniti Group’s stock rose close to 8% over the last month, with the company releasing its second quarter 2024 results, recording US$295 million of revenue. Net income and Adjusted EBITDA were US$18.3 million and US$236.7 million, respectively. The CEO, Kenny Gunderman commented that performance was “fueled by strong demand for its mission critical fiber infrastructure. Approximately 40% of our consolidated bookings during the quarter, the highest level since 2022, was driven by Hyperscalers and Generative AI demand”.
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