tiprankstipranks
Nick Scali Limited (AU:NCK)
ASX:NCK
Australian Market
Want to see AU:NCK full AI Analyst Report?

Nick Scali Limited (NCK) AI Stock Analysis

37 Followers

Top Page

AU:NCK

Nick Scali Limited

(Sydney:NCK)

Select Model
Select Model
Select Model
Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
AU$18.50
▲(22.92% Upside)
Action:Reiterated
Date:08/10/26
The score is primarily supported by solid financial performance (strong profitability, 2026 revenue re-acceleration, and healthy free cash flow), partially offset by elevated leverage and some margin compression versus prior peak years. Technicals are moderately positive but tempered by near-overbought signals and trading below the 200-day average. Valuation is fair with a supportive dividend yield, but the P/E is not especially cheap.
Positive Factors
Strong Profitability
Consistently strong 2026 net and EBIT margins indicate durable product margin control and operational efficiency. These margins provide the company with ongoing ability to fund store operations, absorb cost shocks, and support returns to shareholders, strengthening long-term earnings resilience.
Negative Factors
Elevated Leverage
Material debt relative to equity constrains financial flexibility and increases interest and refinancing risk if trading weakens. Elevated leverage reduces the margin for error during downturns and limits the company's capacity to invest or return capital without prioritizing debt service.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Consistently strong 2026 net and EBIT margins indicate durable product margin control and operational efficiency. These margins provide the company with ongoing ability to fund store operations, absorb cost shocks, and support returns to shareholders, strengthening long-term earnings resilience.
Read all positive factors

Nick Scali Limited (NCK) vs. iShares MSCI Australia ETF (EWA)

Nick Scali Limited Business Overview & Revenue Model

Company Description
Nick Scali Limited, through its various entities, specializes in the procurement and sale of residential furniture and associated accessories, primarily catering to markets in Australia and New Zealand. Their diverse product portfolio includes liv...
How the Company Makes Money
Nick Scali makes money primarily by retailing furniture and homewares to consumers. Its core revenue stream is product sales made through its owned and operated physical showrooms, where customers browse displays, consult sales staff, and place or...

Nick Scali Limited Financial Statement Overview

Summary
Strong profitability and a sharp revenue rebound in 2026 support the score, with solid net and operating margins for the sector and healthy free cash flow generation. Offsetting this are compressed margins versus the 2021–2023 peak period, meaningful leverage (debt-to-equity ~1.25x), and somewhat inconsistent cash conversion versus net income across recent years.
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
69
Positive
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue516.70M495.28M468.19M507.72M440.96M
Gross Profit194.07M314.62M306.80M322.41M268.98M
EBITDA177.08M157.49M176.95M199.52M158.78M
Net Income75.68M57.68M80.61M101.08M74.92M
Balance Sheet
Total Assets749.08M705.81M704.88M607.64M616.39M
Cash, Cash Equivalents and Short-Term Investments106.59M100.99M111.33M89.25M74.62M
Total Debt350.07M316.14M320.37M318.17M329.60M
Total Liabilities469.31M439.13M447.10M427.73M475.47M
Stockholders Equity279.77M266.68M257.78M179.91M140.93M
Cash Flow
Free Cash Flow128.73M100.92M102.72M121.03M102.25M
Operating Cash Flow150.72M115.49M131.18M133.92M121.23M
Investing Cash Flow-22.99M15.43M-64.91M-12.89M-121.50M
Financing Cash Flow-120.90M-113.02M-74.19M-66.40M-72.00M

Nick Scali Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price15.05
Price Trends
50DMA
15.95
Positive
100DMA
15.41
Positive
200DMA
18.52
Negative
Market Momentum
MACD
0.34
Negative
RSI
53.07
Neutral
STOCH
38.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NCK, the sentiment is Neutral. The current price of 15.05 is below the 20-day moving average (MA) of 16.19, below the 50-day MA of 15.95, and below the 200-day MA of 18.52, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 38.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:NCK.

Nick Scali Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
AU$1.41B18.5125.20%4.87%4.33%31.22%
62
Neutral
AU$44.21M9.1713.53%8.20%4.03%-14.92%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
AU$433.21M-11.23-69.14%3.65%4.41%-2505.17%
61
Neutral
AU$258.10M13.378.37%5.85%5.66%-42.42%
60
Neutral
AU$400.20M14.0815.11%2.86%1.86%-5.28%
55
Neutral
AU$604.88M76.665.66%18.85%20.89%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NCK
Nick Scali Limited
16.47
-4.88
-22.86%
AU:KGN
Kogan.com
4.57
0.82
21.80%
AU:TPW
Temple & Webster Group Ltd
5.19
-18.52
-78.11%
AU:ADH
Adairs Ltd.
1.45
-0.67
-31.78%
AU:DSK
Dusk Group Ltd.
0.71
-0.18
-20.05%
AU:BLX
Beacon Lighting Group Ltd
1.75
-1.63
-48.23%

Nick Scali Limited Corporate Events

Nick Scali Declares Interim Dividend of 39 Cents per Share
Aug 6, 2026
Nick Scali Limited has declared an ordinary interim dividend of AUD 0.39 per share, relating to the six-month period ended 30 June 2026, to be paid on its fully paid ordinary shares. The dividend will trade ex-dividend on 30 September 2026, with a...
Nick Scali lifts FY26 profit and margins as UK arm turns profitable in second half
Aug 6, 2026
Nick Scali Limited reported a robust FY26 performance, with group net profit after tax rising 22% and revenue up 4% despite challenging retail conditions, underpinned by a 210 basis point improvement in gross margin. The board declared a fully fra...
Nick Scali lifts profit and dividends as earnings rebound
Aug 6, 2026
Nick Scali reported a 4.3% rise in revenue to $516.7 million for the year to 30 June 2026, while statutory and underlying profit after tax climbed to $75.7 million, up 31.2% and 22.1% respectively. Earnings per share increased to 88.5 cents, refle...
Macquarie Group Ends Substantial Holding in Nick Scali
Jul 15, 2026
Macquarie Group Limited and its controlled entities have lodged a formal notice that they have ceased to be a substantial holder in Nick Scali Limited. The cessation of substantial holding status indicates that Macquarie’s aggregated voting ...
Nick Scali schedules FY26 results webcast for August
Jul 7, 2026
Nick Scali Limited will release its financial results for the year ended 30 June 2026 on Friday, 7 August 2026, and has scheduled a results teleconference and live webcast for the same day. The event will be hosted by Chief Executive Officer Antho...
State Street group exits substantial holding in Nick Scali
Jun 24, 2026
Nick Scali Limited has disclosed that entities within the State Street group, including State Street Global Advisors and related subsidiaries, have ceased to be substantial shareholders in the company as of 22 June 2026. The notice, lodged under A...
State Street Group Ceases to Be Substantial Holder in Nick Scali
Jun 19, 2026
State Street Corporation and several of its asset management subsidiaries have notified Nick Scali Limited that they have ceased to be substantial holders in the company as of 17 June 2026, under Australia’s Corporations Act disclosure rules...
State Street exits substantial holding in Nick Scali
Jun 9, 2026
State Street Corporation and its related State Street Global Advisors entities have lodged a notice that they have ceased to be substantial shareholders in Nick Scali Limited. The filing indicates that these entities, which previously held a signi...
Nick Scali Tightens Governance With Updated Securities Trading Policy
May 29, 2026
Nick Scali Limited has released an updated Securities Trading Policy, effective immediately, to guide its directors and employees on the proper purchase and sale of company securities under Australian law. The policy reinforces the prohibition on ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2026