Nick Scali Limited (NCK) AI Stock Analysis

• Market Cap: AU$1.89B
• Dividend Yield: 2.82%
• Average Volume (3M): 395.13K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 1.27
• Revenue Growth: 5.79%
• EPS Growth: -31.70%
• Country: AU
• Employees: 930
• Sector: Real Estate
• Sector Strength: 50
• Industry: Specialty Retail
• EPS (TTM): 0.33
• Shares Outstanding: 85,530,700
• 10 Day Avg. Volume: 723,483
• 30 Day Avg. Volume: 395,134
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$22.34
• Price Target Upside: 0.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: AU$24.00 ▲(7.48% Upside)

Nick Scali Limited's strong financial performance, characterized by robust revenue growth and operational efficiency, is a key strength. However, technical indicators suggest the stock may be overbought, and its high P/E ratio indicates potential overvaluation. Investors should be cautious of the high debt levels and monitor for any price corrections.

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 Limited generates revenue primarily through the sale of furniture and home accessories via its network of retail stores and online platforms. The company's revenue model is based on sourcing and importing a variety of furniture pieces from manufacturers worldwide, which are then marketed and sold under the Nick Scali brand. Additionally, the company benefits from economies of scale by maintaining a well-optimized supply chain and leveraging its purchasing power. Key revenue streams include direct retail sales, both in-store and online, and ancillary services such as delivery and extended warranties. Significant partnerships with international furniture manufacturers allow Nick Scali to maintain a diverse and exclusive product range, further driving sales and profitability.

Nick Scali Limited Financial Statement Overview

Summary

Nick Scali Limited shows 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: Positive
• Last Price: 22.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 22.33 is above the 20-day moving average (MA) of 20.15, above the 50-day MA of 19.17, and above the 200-day MA of 16.81, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 75.43 is Negative, neither overbought nor oversold. The STOCH value of 86.60 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCK	64 Neutral	AU$1.89B	32.77	21.99%	2.82%	5.79%	-31.70%
Sector *	53 Neutral	$1.23B	2.63	-2.30%	5.60%	-2.10%	-111.41%
TPLWF	―	$1.81B	278.21	8.81%	―	―	―
1FQ	―	€217.43M	10.38	14.57%	―	―	―
BLX	72 Outperform	AU$807.16M	27.01	17.54%	2.28%	5.33%	-4.25%
DSK	70 Outperform	AU$61.02M	10.59	13.17%	6.35%	5.42%	-8.87%
SHM	67 Neutral	AU$52.97M	9.18	14.07%	7.30%	5.58%	6.31%

Nick Scali Limited Corporate Events

Nick Scali Limited Announces FY25 Results Teleconference

Nick Scali Limited has announced it will release its financial results for the fiscal year ending June 30, 2025, on August 8, 2025. The announcement includes an invitation for shareholders and interested parties to join a teleconference led by Managing Director Anthony Scali, where the results will be presented and questions addressed. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

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 New Joint Company Secretaries

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.