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Nick Scali Limited (AU:NCK)
ASX:NCK
Australian Market
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Nick Scali Limited (NCK) AI Stock Analysis

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AU:NCK

Nick Scali Limited

(Sydney:NCK)

Rating:68Neutral
Price Target:
AU$20.00
▲(4.49%Upside)
Nick Scali Limited's strong financial performance and cash flow management are key strengths, despite challenges in revenue growth. Technical indicators suggest neutral market sentiment, and the stock is fairly valued with a decent dividend yield.

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 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 exhibits strong profitability and cash flow management, with a solid gross profit margin of 65.53% and a robust operating cash flow to net income ratio of 1.63. However, a revenue decrease of 7.79% poses a risk to future growth.
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue468.19M507.72M440.96M373.04M262.48M
Gross Profit306.80M322.41M268.98M236.75M164.66M
EBITDA176.95M199.52M158.78M159.04M86.60M
Net Income80.61M101.08M74.92M84.24M42.08M
Balance Sheet
Total Assets704.88M607.64M616.39M489.25M415.60M
Cash, Cash Equivalents and Short-Term Investments111.33M89.25M74.62M106.89M63.04M
Total Debt320.37M318.17M329.60M226.98M214.87M
Total Liabilities447.10M427.73M475.47M375.22M340.19M
Stockholders Equity257.78M179.91M140.93M114.03M75.41M
Cash Flow
Free Cash Flow102.72M121.03M102.25M124.26M82.74M
Operating Cash Flow131.18M133.92M121.23M139.90M91.39M
Investing Cash Flow-64.91M-12.89M-121.50M-15.62M1.12M
Financing Cash Flow-74.19M-66.40M-72.00M-80.43M-65.76M

Nick Scali Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.14
Price Trends
50DMA
18.67
Positive
100DMA
17.70
Positive
200DMA
16.35
Positive
Market Momentum
MACD
0.12
Negative
RSI
58.04
Neutral
STOCH
46.12
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 19.14 is above the 20-day moving average (MA) of 18.54, above the 50-day MA of 18.67, and above the 200-day MA of 16.35, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 46.12 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 (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$1.64B23.7029.48%3.29%9.36%-21.69%
54
Neutral
$1.24B3.840.67%6.03%-2.39%-129.28%
$1.83B321.565.83%
€202.52M9.6014.57%6.88%
72
Outperform
AU$823.16M27.5417.54%2.19%5.33%-4.25%
71
Outperform
AU$53.55M9.3013.17%6.94%5.42%-8.87%
66
Neutral
AU$51.41M8.9114.07%7.58%5.58%6.31%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NCK
Nick Scali Limited
19.14
4.72
32.73%
TPLWF
Temple & Webster Group Ltd
11.93
4.75
66.16%
DE:1FQ
Adairs Ltd.
1.11
-0.07
-5.93%
AU:DSK
Dusk Group Ltd.
0.86
0.11
14.67%
AU:SHM
Shriro Holdings Ltd.
0.66
0.01
1.54%
AU:BLX
Beacon Lighting Group Ltd
3.60
1.28
55.17%

Nick Scali Limited Corporate Events

Nick Scali Limited Announces FY25 Results Teleconference
Jul 7, 2025

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
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.

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 10, 2025