NBISNebius Group N.V.
Is the business good?
The checks split: earnings fully cash-backed (4.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NBIS?
Nebius Group N.V. earns 6.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.4 points below what the capital costs: growth destroys value
- Operating margin
- 3.6%
Operating margin · Internet Content & Information median 4.9% · fiscal year to FY2023
- Cash conversion
- 4.89×
Cash conversion · 4.65× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.77%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 7.2% |
| FY2021 | −3.7% |
| FY2022 | 2.5% |
| FY2023 | 3.6% |
Details›
- Gross marginfiscal year to FY2023
- 55%
- Operating marginfiscal year to FY2023
- 3.6%
- Net marginfiscal year to FY2023
- 2.5%
- Free cash flow margin
- −2.5%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $800.1B
- Free cash flow, trailing twelve months
- −$20.4B
- Net income, trailing twelve months
- $19.9B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #10 of 31 by RyuScore