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Nido Education Limited (AU:NDO)
ASX:NDO
Australian Market

Nido Education Limited (NDO) AI Stock Analysis

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AU

Nido Education Limited

(Sydney:NDO)

Rating:72Outperform
Price Target:
AU$1.00
▲(40.85%Upside)
Nido Education Limited shows strong revenue growth and a positive trend toward profitability, which are significant strengths. However, technical indicators suggest bearish sentiment, and liquidity concerns persist. The stock's attractive valuation metrics, including a low P/E ratio and high dividend yield, provide a solid investment case despite operational challenges.

Nido Education Limited (NDO) vs. iShares MSCI Australia ETF (EWA)

Nido Education Limited Business Overview & Revenue Model

Company DescriptionNido Education Limited owns, operates, and manages long day early childhood education and care centers under the Nido Early School brand name in Australia. The company was incorporated in 2021 and is based in Drummoyne, Australia.
How the Company Makes MoneyNido Education Limited generates revenue through a multi-faceted approach centered around its digital learning platforms. The key revenue streams include subscription fees from individual learners and educational institutions that access their online courses and resources. In addition to direct subscriptions, Nido Education Limited partners with schools and universities to integrate their platforms into existing curricula, often under licensing agreements. The company also explores collaborations with corporate clients for workforce training programs, further diversifying its income sources. Strategic partnerships with technology providers and content creators enhance its offerings and contribute to its revenue model by attracting a broader customer base.

Nido Education Limited Financial Statement Overview

Summary
Nido Education Limited demonstrates strong revenue growth and improving profitability, with a significant increase in total revenue and a positive net profit margin. However, the company faces operational challenges as indicated by an EBIT of zero and potential liquidity issues due to zero operating cash flow.
Income Statement
85
Very Positive
Nido Education Limited has shown strong revenue growth with Total Revenue increasing from 92M to 164M AUD, marking a 75% growth rate. The Gross Profit Margin is impressive at approximately 94.5%, indicating efficient cost management. The net profit margin has improved from negative values to 8.95% in 2024, showing a positive trend towards profitability. However, EBIT remains at zero, which suggests operational challenges despite the revenue growth.
Balance Sheet
70
Positive
The company has a stable financial structure with a moderate Debt-to-Equity Ratio of 1.49, indicating a balanced leverage position. Return on Equity improved significantly with a positive ROE of 11.84% in 2024 compared to negative values in previous years. However, the Equity Ratio is modest at 38.2%, suggesting a moderate reliance on debt financing.
Cash Flow
65
Positive
Free Cash Flow has improved significantly from negative figures to a positive 27M AUD. However, the Operating Cash Flow is at zero, indicating potential liquidity challenges. The Free Cash Flow to Net Income Ratio is robust, but the Operating Cash Flow to Net Income Ratio lacks clarity due to the absence of operating cash flow figures.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
163.63M93.37M57.94M19.22M
Gross Profit
154.59M86.66M57.94M5.19M
EBIT
28.31M-20.35M-7.97M2.91M
EBITDA
25.95M-13.58M5.25M4.77M
Net Income Common Stockholders
14.65M-18.11M-6.78M1.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.51M25.57M23.20M1.34M
Total Assets
323.81M323.88M308.90M20.91M
Total Debt
184.07M189.98M177.50M2.24M
Net Debt
180.56M164.41M154.30M900.00K
Total Liabilities
200.13M214.43M197.10M23.25M
Stockholders Equity
123.68M109.45M111.80M-2.34M
Cash FlowFree Cash Flow
27.33M-58.00K-2.33M1.83M
Operating Cash Flow
28.50M293.00K0.002.04M
Investing Cash Flow
-24.34M-79.67M-2.83M-204.00K
Financing Cash Flow
-26.22M102.63M6.30M-1.56M

Nido Education Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.71
Price Trends
50DMA
0.79
Negative
100DMA
0.77
Negative
200DMA
0.76
Negative
Market Momentum
MACD
-0.02
Positive
RSI
34.33
Neutral
STOCH
20.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NDO, the sentiment is Negative. The current price of 0.71 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.79, and below the 200-day MA of 0.76, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.33 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NDO.

Nido Education Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUNDO
72
Outperform
AU$161.76M10.9612.57%8.17%75.25%
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
AUEVO
AU$132.11M15.9310.37%8.33%
AUAQZ
73
Outperform
AU$408.82M6.4815.44%16.98%12.16%
AUGEM
66
Neutral
AU$906.58M14.027.43%5.96%3.24%21.10%
AUMFD
58
Neutral
AU$28.66M105.560.37%1.32%13.92%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NDO
Nido Education Limited
0.71
-0.13
-15.48%
AU:EVO
Evolve Education Group Ltd
0.72
0.06
9.09%
AU:AQZ
Alliance Aviation Services Limited
2.54
-0.42
-14.19%
AU:GEM
G8 Education Limited
1.18
0.06
5.36%
AU:MFD
Mayfield Childcare Ltd.
0.38
-0.29
-43.28%

Nido Education Limited Corporate Events

Nido Education Limited Updates on Market Buy-Back Program
Jun 15, 2025

Nido Education Limited has announced an update regarding its ongoing on-market buy-back program for its ordinary fully paid securities, identified by the ASX code NDO. As of June 16, 2025, the company has bought back a total of 275,908 securities, including 18,065 on the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Updates on Share Buy-Back Program
Jun 12, 2025

Nido Education Limited has announced an update regarding its ongoing on-market buy-back program. As of June 13, 2025, the company has bought back a total of 236,353 ordinary fully paid securities, with an additional 21,490 securities purchased on the previous day. This buy-back initiative is part of Nido Education’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Issues New Securities to Enhance Capital Structure
May 28, 2025

Nido Education Limited announced the issuance of 2,971 fully paid ordinary securities as part of its ongoing financial activities. This move reflects the company’s strategic efforts to manage its equity structure and may impact its market positioning by potentially increasing its capital base, thereby influencing shareholder value.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Announces Cessation of Securities
May 28, 2025

Nido Education Limited announced the cessation of certain securities, including the cancellation of 236,353 ordinary fully paid shares through an on-market buy-back and the lapse of 173,481 options due to unmet conditions. This move reflects the company’s ongoing capital management strategy, potentially impacting its market position and signaling a focus on optimizing shareholder value.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Updates on Securities Buy-Back Program
May 1, 2025

Nido Education Limited has announced an update regarding its ongoing on-market buy-back program. The company reported that it has repurchased a total of 23,982 ordinary fully paid securities on the previous day, adding to the cumulative total of 212,371 securities bought back prior to that day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Nido Education Limited Updates on Buy-Back Program
Apr 30, 2025

Nido Education Limited has announced an update regarding their ongoing on-market buy-back program. As of April 30, 2025, the company has repurchased a total of 183,297 ordinary fully paid securities, with 27,967 bought back on the previous day. This buy-back initiative is part of Nido Education’s strategy to manage its capital structure and potentially enhance shareholder value.

Nido Education Limited Updates on Buy-Back Program
Apr 28, 2025

Nido Education Limited announced an update on its ongoing on-market buy-back program, with a total of 24,451 ordinary fully paid securities bought back on the previous day, adding to the 130,879 already acquired. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Nido Education Limited Updates on Buy-Back Program
Apr 28, 2025

Nido Education Limited has announced an update on its ongoing on-market buy-back program. The company reported a total of 22,911 ordinary fully paid securities were bought back on the previous day, with a total consideration of AUD77,463.51. This buy-back is part of a larger effort, with a cumulative total of 107,968 securities repurchased before the previous day. The update reflects an amendment to the previously announced total consideration for the securities, indicating a strategic move to manage the company’s capital structure and potentially enhance shareholder value.

Nido Education Limited Updates on Share Buy-Back Program
Apr 23, 2025

Nido Education Limited has announced an update on its ongoing share buy-back program, reporting the purchase of 10,764 ordinary fully paid securities on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Nido Education Limited Updates on Share Buy-Back Program
Apr 21, 2025

Nido Education Limited has announced an update regarding its ongoing share buy-back program. The company reported that it has bought back a total of 55,523 securities before the previous day and an additional 15,911 securities on the previous day. This move is part of their strategy to manage capital and potentially enhance shareholder value.

Nido Education Limited Announces Cessation of Securities
Apr 15, 2025

Nido Education Limited announced the cessation of certain securities due to the lapse of conditional rights. Specifically, options expiring in July 2027, with codes NDOAA and NDOAB, totaling 1,340,407 securities, have ceased as the conditions for these securities were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and investor relations, as it reflects changes in the company’s issued capital.

Nido Education Limited Updates on Security Buy-Back
Apr 14, 2025

Nido Education Limited has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of April 15, 2025, the company reported a total of 50,555 securities bought back before the previous day, with an additional 4,968 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Nido Education Limited Updates on Share Buy-Back Program
Apr 13, 2025

Nido Education Limited has announced an update regarding its ongoing on-market buy-back program. As of April 14, 2025, the company has repurchased a total of 50,555 ordinary fully paid securities, including 12,420 bought back on the previous day. This buy-back initiative is part of Nido Education’s strategy to optimize its capital structure and potentially enhance shareholder value.

Nido Education Limited Announces 2025 AGM Details and Proposed 2024 Dividend
Mar 26, 2025

Nido Education Limited has announced details for its 2025 Annual General Meeting (AGM), which will be held as a hybrid event on May 1, 2025, allowing shareholders to participate either in person or online. The company also announced a proposed final dividend for 2024, highlighting its commitment to shareholder returns.

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.