Nutanix, Inc.
Nutanix, Inc. Fundamental Analysis
Nutanix, Inc. (NTNX) shows weak financial fundamentals with a PE ratio of 48.21, profit margin of 8.43%, and ROE of -30.61%. The company generates $2.6B in annual revenue with strong year-over-year growth of 15.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NTNX's fundamental strength across five key dimensions:
Efficiency Score
WeakNTNX struggles to generate sufficient returns from assets.
Valuation Score
WeakNTNX trades at a premium to fair value.
Growth Score
ExcellentNTNX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNTNX maintains a strong and stable balance sheet.
Profitability Score
WeakNTNX struggles to sustain strong margins.
Key Financial Metrics
Is NTNX Expensive or Cheap?
P/E Ratio
NTNX trades at 48.21 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NTNX's PEG of 2.81 indicates potential overvaluation.
Price to Book
The market values Nutanix, Inc. at -15.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 32.46 times EBITDA. This signals the market has high growth expectations.
How Well Does NTNX Make Money?
Net Profit Margin
For every $100 in sales, Nutanix, Inc. keeps $8.43 as profit after all expenses.
Operating Margin
Core operations generate 7.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-30.61 in profit for every $100 of shareholder equity.
ROA
Nutanix, Inc. generates $6.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nutanix, Inc. generates strong operating cash flow of $858.21M, reflecting robust business health.
Free Cash Flow
Nutanix, Inc. generates strong free cash flow of $774.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.86 in free cash annually.
FCF Yield
NTNX converts 7.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
-15.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.31
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How NTNX Stacks Against Its Sector Peers
| Metric | NTNX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.21 | 35.19 | Worse (Expensive) |
| ROE | -30.61% | 1155.00% | Weak |
| Net Margin | 8.43% | -127067.00% (disorted) | Weak |
| Debt/Equity | -2.21 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.89 | 4.71 | Neutral |
| ROA | 6.63% | -314918.00% (disorted) | Weak |
NTNX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nutanix, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.58%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
85.14%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
1080.40%
Industry Style: Growth, Innovation, High Beta
High Growth