Nick Scali Limited (NCK) AI Stock Analysis

• Market Cap: AU$1.81B
• Dividend Yield: 2.98%
• Average Volume (3M): 269.77K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 1.14
• Revenue Growth: 5.79%
• EPS Growth: -31.70%
• Country: AU
• Employees: 930
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.33
• Shares Outstanding: 85,530,700
• 10 Day Avg. Volume: 282,624
• 30 Day Avg. Volume: 269,768
• PEG Ratio: -0.86
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 3.14
• P/FCF Ratio: 15.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$24.83
• Price Target Upside: 17.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: AU$24.00 ▲(13.42% Upside)

Nick Scali Limited's stock score is primarily influenced by strong financial performance, despite concerns about leverage and cash flow volatility. Technical indicators suggest a bearish trend, and the high P/E ratio raises valuation concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates successful market penetration and product demand, supporting long-term business expansion and stability.

Operational Efficiency

High gross profit margins reflect efficient operations and cost control, which can sustain profitability and competitive positioning over time.

Cash Generation

Strong cash flow growth enhances financial flexibility, enabling investment in growth opportunities and resilience against economic fluctuations.

Negative Factors

High Debt Levels

High debt levels can increase financial risk and limit strategic options, potentially impacting long-term sustainability if not managed prudently.

Net Profit Margin Decline

A declining net profit margin may signal rising costs or pricing pressures, which could affect future earnings and shareholder returns.

Cash Flow Volatility

Volatile cash flows can hinder strategic planning and investment, posing challenges to maintaining consistent financial performance.

Nick Scali Limited Business Overview & Revenue Model

Company Description

Nick Scali Limited, together with its subsidiaries, engages in sourcing and retailing of household furniture and related accessories primarily in Australia and New Zealand. It offers sofas and armchairs; TV and entertainment units; coffee, side, and console and hallway tables; dinning tables and chairs, and buffet tables and sideboards; mattresses, bed frames, bedside tables, tallboy, and dressers; and rugs, mirrors, and lighting. The company provides its products through a network of 63 stores in Australia and 5 stores in New Zealand, as well as online. Nick Scali Limited was incorporated in 1962 and is based in North Ryde, Australia.

How the Company Makes Money

Nick Scali generates revenue primarily through the sale of its furniture and home decor products, which are sold through its retail stores and online platform. The company operates a network of showrooms across Australia and New Zealand, where customers can experience its product range firsthand. In addition to direct sales, the company often engages in promotional campaigns and offers financing options to customers, which can drive higher sales volumes. Seasonal sales events and partnerships with designers and suppliers also contribute to its revenue streams. Furthermore, Nick Scali benefits from strong brand recognition and customer loyalty, which helps maintain consistent sales and profitability.

Nick Scali Limited Financial Statement Overview

Summary

Nick Scali Limited exhibits strong revenue growth and operational efficiency, with solid profitability margins. However, the high debt-to-equity ratio and fluctuations in cash flow growth present potential risks. The company should focus on maintaining its profitability while managing its leverage to ensure long-term financial stability.

Income Statement

Nick Scali Limited has demonstrated strong revenue growth over the years, with a significant increase of 53.9% in the latest year. The gross profit margin remains robust, consistently above 60%, indicating effective cost management. However, the net profit margin has decreased from previous years, reflecting potential challenges in maintaining profitability. Despite this, the company maintains a healthy EBIT and EBITDA margin, showcasing operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, which has improved slightly over the years but remains a concern for financial stability. The return on equity is strong, indicating effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Nick Scali Limited has shown positive free cash flow growth, with a notable increase of 27.7% in the latest year. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, fluctuations in free cash flow growth in previous years highlight potential volatility in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	495.28M	495.28M	468.19M	507.72M	440.96M	373.04M
Gross Profit	174.45M	314.62M	306.80M	322.41M	268.98M	236.75M
EBITDA	157.49M	157.49M	176.95M	199.52M	158.78M	159.04M
Net Income	57.68M	57.68M	80.61M	101.08M	74.92M	84.24M
Balance Sheet
Total Assets	705.81M	705.81M	704.88M	607.64M	616.39M	489.25M
Cash, Cash Equivalents and Short-Term Investments	100.99M	100.99M	111.33M	89.25M	74.62M	106.89M
Total Debt	316.14M	316.14M	320.37M	318.17M	329.60M	226.98M
Total Liabilities	439.13M	439.13M	447.10M	427.73M	475.47M	375.22M
Stockholders Equity	266.68M	266.68M	257.78M	179.91M	140.93M	114.03M
Cash Flow
Free Cash Flow	97.68M	100.92M	102.72M	121.03M	102.25M	124.26M
Operating Cash Flow	111.26M	115.49M	131.18M	133.92M	121.23M	139.90M
Investing Cash Flow	15.43M	15.43M	-64.91M	-12.89M	-121.50M	-15.62M
Financing Cash Flow	-108.79M	-113.02M	-74.19M	-66.40M	-72.00M	-80.43M

Nick Scali Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NCK, the sentiment is Negative. The current price of 21.16 is below the 20-day moving average (MA) of 22.65, below the 50-day MA of 23.11, and above the 200-day MA of 20.22, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 22.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NCK.

Nick Scali Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHM	70 Neutral	AU$60.95M	9.35	17.58%	6.13%	-13.36%	14.09%
DSK	66 Neutral	AU$48.57M	11.03	12.71%	8.97%	8.39%	3.21%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NCK	59 Neutral	AU$1.81B	31.34	21.99%	2.98%	5.79%	-31.70%
ADH	58 Neutral	AU$299.70M	11.57	11.70%	6.21%	3.99%	-18.35%
BLX	55 Neutral	AU$614.64M	20.76	16.86%	2.99%	1.89%	-3.30%
TPW	54 Neutral	AU$1.63B	142.44	8.81%	―	20.66%	543.24%

Nick Scali Limited Corporate Events

State Street Corporation Ceases Substantial Holding in Nick Scali Limited

Nick Scali Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 26, 2025. This change in substantial holding may impact the company’s shareholder structure and could have implications for its market positioning and stakeholder interests.

State Street Ceases Substantial Holding in Nick Scali Limited

Nick Scali Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 21, 2025. This change in substantial holding may impact the company’s shareholder structure and could influence its market perception and investor confidence.

State Street Corporation Ceases Substantial Holding in Nick Scali Limited

Nick Scali Limited has announced that a substantial holder, State Street Corporation and its subsidiaries, have ceased to hold a significant interest in the company as of November 18, 2025. This change in substantial holding could impact the company’s shareholder structure and may influence its market perception, although specific implications for stakeholders were not detailed in the release.

State Street Corporation Ceases Substantial Holding in Nick Scali Limited

Nick Scali Limited has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders in the company as of November 12, 2025. This change in substantial holding could impact the company’s shareholder structure and influence in the market, potentially affecting its strategic decisions and stakeholder interests.

State Street Global Advisors Ceases Substantial Holding in Nick Scali Limited

Nick Scali Limited has announced that State Street Global Advisors Limited and its associated entities have ceased to be substantial holders in the company as of October 30, 2025. This change in substantial holding could impact the company’s shareholder dynamics and influence its market positioning, potentially affecting investor sentiment and stakeholder interests.

Nick Scali Limited Announces Director Departure

Nick Scali Limited has announced the cessation of John Weir Ingram as a director, effective October 29, 2025. This change in the board may impact the company’s strategic direction, as Ingram held a significant interest in the company with 206,387 fully paid ordinary shares through Netwealth Investments Limited.

Nick Scali Limited’s 2025 AGM Resolutions Passed with Strong Support

Nick Scali Limited announced that all resolutions proposed at its 2025 Annual General Meeting were passed by a poll, indicating strong shareholder support. The successful resolutions, including the re-election and election of directors, reflect the company’s stable governance and strategic direction, which is likely to have a positive impact on its market positioning and stakeholder confidence.

Nick Scali Limited Reports Strong FY25 Performance and Strategic Board Changes

Nick Scali Limited reported a strong financial performance for the fiscal year 2025, achieving an underlying profit of $62 million. The company successfully completed an equity raise to fund its UK acquisition, resulting in net proceeds of $58.6 million. The appointment of Niran Peiris to the Board and the transition of Anthony Scali to Executive Chair are expected to guide the company’s next growth phase. In ANZ, sales orders increased by 3%, though revenue slightly declined by 1.4% due to rising shipping costs and other expenses. The UK operations, impacted by store refurbishments and rebranding, generated $41.8 million in revenue.

Nick Scali Limited Announces Leadership Transition

Nick Scali Limited announced the retirement of its Chair, John Ingram, who has been pivotal in the company’s growth since joining the board before its IPO in 2004. Anthony Scali will take over as Executive Chair, with William Koeck appointed as Deputy Chair and Lead Independent Director, signaling a strategic transition aimed at driving future growth and enhancing shareholder value.

Nick Scali Limited Announces 2025 Annual General Meeting Agenda

Nick Scali Limited has announced its Annual General Meeting (AGM) scheduled for October 29, 2025, where key agenda items include the consideration of financial reports and the election of directors. The AGM will address the adoption of the Remuneration Report and the re-election of William Koeck as a Non-Executive Director, alongside the election of Niran Peiris as a new Director. These decisions are significant for the company’s governance and strategic direction, impacting stakeholders and aligning with corporate regulations.