Nick Scali Limited
Nick Scali Limited Fundamental Analysis
Nick Scali Limited (NCK.AX) shows moderate financial fundamentals with a PE ratio of 19.37, profit margin of 13.36%, and ROE of 25.20%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 5.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NCK.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakNCK.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNCK.AX trades at attractive valuation levels.
Growth Score
ModerateNCK.AX shows steady but slowing expansion.
Financial Health Score
ModerateNCK.AX shows balanced financial health with some risks.
Profitability Score
ModerateNCK.AX maintains healthy but balanced margins.
Key Financial Metrics
Is NCK.AX Expensive or Cheap?
P/E Ratio
NCK.AX trades at 19.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NCK.AX's PEG of 1.00 indicates potential undervaluation.
Price to Book
The market values Nick Scali Limited at 4.78 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.05 times EBITDA. This is generally considered low.
How Well Does NCK.AX Make Money?
Net Profit Margin
For every $100 in sales, Nick Scali Limited keeps $13.36 as profit after all expenses.
Operating Margin
Core operations generate 22.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.20 in profit for every $100 of shareholder equity.
ROA
Nick Scali Limited generates $9.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nick Scali Limited generates strong operating cash flow of $143.41M, reflecting robust business health.
Free Cash Flow
Nick Scali Limited generates strong free cash flow of $118.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.39 in free cash annually.
FCF Yield
NCK.AX converts 8.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How NCK.AX Stacks Against Its Sector Peers
| Metric | NCK.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.37 | 23.80 | Better (Cheaper) |
| ROE | 25.20% | 1105.00% | Weak |
| Net Margin | 13.36% | -512.00% (disorted) | Strong |
| Debt/Equity | 1.97 | 0.78 | Weak (High Leverage) |
| Current Ratio | 1.06 | 2.64 | Neutral |
| ROA | 9.53% | -8048.00% (disorted) | Weak |
NCK.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nick Scali Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
29.96%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
19.82%
Industry Style: Cyclical, Growth, Discretionary
High Growth