Nebius Group N.V. Class A Ordinary Shares (NBIS)

FairStock Score: 14/100 — RISKY

Key Financials

Strengths

• Altman Z-Score of 5.5 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 355.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 2193% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Nebius Group N.V. Class A Ordinary Shares is a mid-cap communication services company valued at $39.9 billion. Revenue stands at $530 million, though the company is currently unprofitable. From a quality standpoint, Nebius shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and Altman Z-Score of 5.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 1428.0x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 355.1% and profit growth of -27.0%. Our composite FairStock Score of 14/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Nebius's 355% revenue growth trajectory could accelerate as it captures additional market share in the communication services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 1428x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer