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Nick Scali Limited (AU:NCK)
ASX:NCK
Australian Market

Nick Scali Limited (NCK) AI Stock Analysis

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AU

Nick Scali Limited

(Sydney:NCK)

Rating:66Neutral
Price Target:
AU$19.50
▲(7.14%Upside)
The overall score is driven primarily by strong financial performance, though moderated by technical indicators suggesting weak momentum. The valuation reflects a premium pricing, offset by a reasonable dividend yield. Lack of earnings call and corporate events data has no impact on the score.

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

Nick Scali Limited Business Overview & Revenue Model

Company DescriptionNick 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 MoneyNick Scali Limited generates revenue primarily through the sale of furniture and home accessories in its retail stores and online platform. The company's key revenue streams include direct sales from its physical stores, online sales, and a growing presence in the New Zealand market. Nick Scali benefits from strategic sourcing of materials and products, allowing it to offer competitively priced items while maintaining high margins. The company also engages in promotional activities and offers financing options to enhance customer purchasing power, contributing to increased sales. Partnerships with manufacturers and suppliers ensure a steady supply chain, supporting the company's ability to meet customer demand and sustain its revenue growth.

Nick Scali Limited Financial Statement Overview

Summary
Nick Scali Limited demonstrates strong profitability with high gross and net profit margins. The company maintains strong operational efficiency with a solid EBIT margin. However, the decline in revenue growth is a concern for future profitability.
Income Statement
75
Positive
Nick Scali Limited demonstrated solid profitability with a gross profit margin of 65.53% and a net profit margin of 17.22% for the latest annual period. However, revenue decreased by 7.79% compared to the previous year, indicating potential challenges in maintaining sales growth. The EBIT margin of 36.94% and EBITDA margin of 37.79% reflect strong operational efficiency.
Balance Sheet
70
Positive
The company's balance sheet shows a stable equity ratio of 36.55% and a manageable debt-to-equity ratio of 1.24, indicating a balanced approach to leveraging. ROE stood at 31.27%, showcasing effective use of equity. However, the increase in total liabilities over recent years suggests rising financial obligations that need monitoring.
Cash Flow
78
Positive
Operating cash flow generation remains robust with a favorable operating cash flow to net income ratio of 1.63, indicating strong cash generation relative to profits. Free cash flow decreased by 15.11%, but the company maintains healthy free cash flow compared to net income, reflecting efficient cash management.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue492.63M468.19M507.72M440.96M373.04M262.48M
Gross Profit245.19M306.80M322.41M268.98M236.75M164.66M
EBITDA163.98M176.95M199.52M158.78M159.04M86.60M
Net Income67.64M80.61M101.08M74.92M84.24M42.08M
Balance Sheet
Total Assets682.54M704.88M607.64M616.39M489.25M415.60M
Cash, Cash Equivalents and Short-Term Investments87.60M111.33M89.25M74.62M106.89M63.04M
Total Debt307.01M320.37M318.17M329.60M226.98M214.87M
Total Liabilities415.75M447.10M427.73M475.47M375.22M340.19M
Stockholders Equity266.79M257.78M179.91M140.93M114.03M75.41M
Cash Flow
Free Cash Flow79.03M102.72M121.03M102.25M124.26M82.74M
Operating Cash Flow98.75M131.18M133.92M121.23M139.90M91.39M
Investing Cash Flow-26.79M-64.91M-12.89M-121.50M-15.62M1.12M
Financing Cash Flow-53.41M-74.19M-66.40M-72.00M-80.43M-65.76M

Nick Scali Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.20
Price Trends
50DMA
18.51
Negative
100DMA
17.39
Positive
200DMA
16.12
Positive
Market Momentum
MACD
-0.13
Positive
RSI
46.53
Neutral
STOCH
28.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NCK, the sentiment is Positive. The current price of 18.2 is below the 20-day moving average (MA) of 18.51, below the 50-day MA of 18.51, and above the 200-day MA of 16.12, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 28.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NCK.

Nick Scali Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNCK
66
Neutral
AU$1.56B22.5429.48%3.30%9.36%-21.69%
65
Neutral
$1.97B17.432.40%5.18%-0.31%5.93%
$1.62B321.565.83%
DE1FQ
€209.77M9.9514.57%6.07%
AUBLX
75
Outperform
AU$820.88M27.4717.54%2.28%5.33%-4.25%
AUDSK
68
Neutral
AU$54.48M9.4613.17%9.14%5.42%-8.87%
AUSHM
68
Neutral
AU$53.75M9.3114.07%5.80%5.58%6.31%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NCK
Nick Scali Limited
18.20
5.42
42.41%
TPLWF
Temple & Webster Group Ltd
11.93
4.75
66.16%
DE:1FQ
Adairs Ltd.
1.14
0.06
5.56%
AU:DSK
Dusk Group Ltd.
0.88
0.28
46.67%
AU:SHM
Shriro Holdings Ltd.
0.69
0.00
0.00%
AU:BLX
Beacon Lighting Group Ltd
3.59
1.24
52.77%

Nick Scali Limited Corporate Events

Nick Scali Limited Announces New Joint Company Secretaries
Jul 1, 2025

Nick Scali Limited has announced a change in its company secretaries, with Kylie Archer and Elizabeth Spooner appointed as Joint Company Secretaries. This strategic move is expected to enhance the company’s governance and compliance capabilities, as Elizabeth Spooner brings extensive experience in corporate governance and legal affairs. The appointments mark a shift in the company’s administrative structure, potentially impacting its operational efficiency and stakeholder communications.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Announces CFO Transition
May 2, 2025

Nick Scali Limited announced the transition to a new Chief Financial Officer, with Sheila Lines retiring to pursue non-executive board roles. She will continue to provide strategic advice post-retirement. Kylie Archer, an experienced finance executive, will succeed Sheila as CFO starting 1 July 2025, joining the company on 19 May to ensure a smooth transition. This leadership change is significant as it follows the company’s recent expansion into the UK market.

Perpetual Limited Increases Stake in Nick Scali Limited
Apr 9, 2025

Perpetual Limited and its related bodies corporate have increased their substantial holding in Nick Scali Limited, raising their voting power from 7.534% to 8.552%. This change in interest reflects a growing confidence in Nick Scali’s market position and potential for future growth, potentially impacting the company’s strategic decisions and shareholder dynamics.

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: Jul 04, 2025