Nutanix, Inc. Fundamental Analysis (NASDAQ: NTNX)
Nutanix, Inc. (NASDAQ: NTNX) shows moderate financial fundamentals with a PE ratio of 64.95, profit margin of 10.03%, and ROE of -37.79%. The company generates $2.8B in annual revenue with strong year-over-year growth of 18.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.1/100 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
ModerateNTNX shows balanced valuation metrics.
Growth Score
ModerateNTNX shows steady but slowing expansion.
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 64.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NTNX's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Nutanix, Inc. at -24.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 48.42 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 $10.03 as profit after all expenses.
Operating Margin
Core operations generate 8.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-37.79 in profit for every $100 of shareholder equity.
ROA
Nutanix, Inc. generates $8.07 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 $834.70M, reflecting robust business health.
Free Cash Flow
Nutanix, Inc. generates strong free cash flow of $783.55M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.90 in free cash annually.
FCF Yield
NTNX converts 4.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
-24.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.38
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How NTNX Stacks Against Its Sector Peers
| Metric | NTNX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.95 | 35.20 | Worse (Expensive) |
| ROE | -37.79% | 749.00% | Weak |
| Net Margin | 10.03% | -2813.00% (disorted) | Strong |
| Debt/Equity | -2.11 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 6.19 | Neutral |
| ROA | 8.07% | 328.00% | Weak |
NTNX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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
41.28%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
115.71%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
474.02%
Industry Style: Growth, Innovation, High Beta
High Growth