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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:NDO

Nido Education Limited

(Sydney:NDO)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
AU$0.50
▼(-9.09% Downside)
Nido Education Limited's overall score reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust revenue growth and profitability improvements are significant positives, but high leverage and negative technical trends pose risks.
Positive Factors
Revenue Growth
The company's ability to significantly increase revenue from $57.9M in 2022 to $163.6M in 2024 indicates strong market demand and effective business strategies, supporting long-term growth potential.
Cash Flow Generation
Strong cash flow generation relative to net income highlights efficient operations and capital management, providing financial flexibility for future investments and growth.
Gross Profit Margin
A high gross profit margin demonstrates effective cost control and pricing power, which can sustain profitability and competitive advantage over time.
Negative Factors
High Debt Levels
Significant leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.
Past Operational Challenges
Historical operational difficulties may indicate underlying issues in business execution or market conditions that could resurface, impacting future performance.
Equity Financing Reliance
Moderate reliance on equity financing might dilute existing shareholders and indicate potential challenges in accessing debt markets, affecting capital structure flexibility.

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

Nido Education Limited Business Overview & Revenue Model

Company DescriptionNido Education Limited (NDO) is a forward-thinking educational organization that operates in the digital education sector. The company focuses on providing innovative learning solutions, including online courses, educational resources, and platforms designed to enhance the learning experience for students and educators alike. By leveraging technology, Nido Education aims to improve access to quality education and foster a dynamic learning environment across various age groups and educational needs.
How the Company Makes MoneyNido Education generates revenue primarily through subscription fees for its online courses and educational platforms. Users pay for access to a wide range of courses tailored to different educational levels and subjects. Additionally, the company may earn revenue through partnerships with educational institutions, licensing its technology and content, and offering professional development programs for educators. Other potential revenue streams could include sponsored content, affiliate marketing, and sales of educational materials. The company's focus on scalable digital solutions allows it to reach a broader audience, contributing to consistent revenue growth.

Nido Education Limited Financial Statement Overview

Summary
Nido Education Limited shows strong revenue growth and improved profitability, with a significant increase in total revenue and a robust gross profit margin. However, the high debt-to-equity ratio poses financial risk, and past operational challenges are evident in historical EBIT and EBITDA margins.
Income Statement
78
Positive
Nido Education Limited shows a strong revenue growth trajectory, with a significant increase in total revenue from $57.9M in 2022 to $163.6M in 2024. The gross profit margin is robust at 94.5% in 2024, indicating effective cost management. The net profit margin improved to 8.95% in 2024 from negative in previous years, reflecting a turnaround in profitability. However, the EBIT and EBITDA margins, while positive in 2024, were negative in prior years, suggesting past operational challenges.
Balance Sheet
65
Positive
The company's balance sheet shows a high debt-to-equity ratio of 1.49 in 2024, indicating significant leverage, which could pose financial risk. The equity ratio is 38.2%, suggesting a moderate reliance on equity financing. Return on equity is 11.84% in 2024, demonstrating a decent return for shareholders. However, the high level of debt remains a concern for financial stability.
Cash Flow
72
Positive
Nido Education Limited has shown improvement in cash flow generation, with a substantial increase in free cash flow to $27.3M in 2024. The operating cash flow to net income ratio is 1.94, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 1.86, suggesting efficient capital expenditure management. Despite these strengths, previous years showed negative free cash flow, highlighting past cash flow challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue169.30M163.63M93.37M57.94M19.22M7.82M
Gross Profit41.04M154.59M86.66M6.64M5.19M854.00K
EBITDA42.54M25.95M-13.58M5.25M4.77M259.00K
Net Income13.80M14.65M-18.11M-6.78M1.88M-1.65M
Balance Sheet
Total Assets326.18M323.81M323.88M308.90M20.91M22.57M
Cash, Cash Equivalents and Short-Term Investments4.31M3.51M25.57M23.20M1.34M1.07M
Total Debt197.46M184.07M189.98M187.61M2.24M18.92M
Total Liabilities213.70M200.13M214.43M197.10M23.25M25.40M
Stockholders Equity112.49M123.68M109.45M111.80M-2.34M-2.84M
Cash Flow
Free Cash Flow14.05M27.33M-58.00K-2.33M1.83M861.00K
Operating Cash Flow17.78M28.50M293.00K-2.66M2.04M1.68M
Investing Cash Flow-14.92M-24.34M-79.67M-2.83M-204.00K-817.00K
Financing Cash Flow-2.38M-26.22M102.63M6.30M-1.56M0.00

Nido Education Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.55
Price Trends
50DMA
0.60
Negative
100DMA
0.63
Negative
200DMA
0.68
Negative
Market Momentum
MACD
-0.01
Positive
RSI
41.24
Neutral
STOCH
62.81
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 0.55 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.60, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 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
66
Neutral
AU$124.86M9.3412.24%12.92%26.16%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
53
Neutral
AU$163.74M750.000.15%-1.08%
48
Neutral
AU$14.59M-11.46-7.51%1.42%86.97%
48
Neutral
AU$32.89M-6.4210.80%1.69%-2.81%-503.02%
41
Neutral
AU$27.52M-4.04-126.76%-14.55%70.98%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NDO
Nido Education Limited
0.56
-0.14
-20.00%
AU:EVO
Evolve Education Group Ltd
0.60
-0.10
-14.29%
AU:AKG
Academies Australasia Group Limited
0.11
>-0.01
-8.33%
AU:CLU
Cluey Ltd
0.07
0.03
75.00%
AU:3PL
3P Learning Ltd.
0.60
-0.24
-28.57%
AU:KME
Kip McGrath Education Centres Limited
0.60
0.14
30.43%

Nido Education Limited Corporate Events

Nido Education CEO Increases Stake with Significant Share Acquisitions
Dec 2, 2025

Nido Education Limited has announced a series of on-market acquisitions of ordinary shares by its CEO and Director, Mr. Adam Lai, totaling over 168,000 shares across several transactions from November 25 to December 2, 2025. This activity indicates a significant increase in personal investment by the CEO, which may reflect confidence in the company’s future prospects and could influence investor sentiment positively.

Nido Education Limited Announces Director’s Share Acquisition
Nov 26, 2025

Nido Education Limited announced a change in the director’s interest, with Mr. Mathew Edwards acquiring a total of 194,198 ordinary shares in two separate transactions. This change in shareholding reflects the company’s ongoing internal adjustments and could indicate confidence in the company’s future performance, potentially impacting stakeholder perceptions and market positioning.

Nido Education Expands with Strategic Acquisitions
Nov 24, 2025

Nido Education Limited has announced the acquisition of two incubator services for approximately $7 million, with both services having high occupancy rates. This move is part of Nido’s growth strategy, supported by a $30 million extension of its acquisition facility and an increased bank guarantee facility. The company aims to expand its operations by leveraging its incubation growth strategy, which requires services to meet specific financial and occupancy criteria. Despite subdued trading, the performance of services in the incubator aligns with expectations, suggesting positive prospects for future acquisitions.

Nido Education Updates Securities Trading Policy
Nov 24, 2025

Nido Education Limited has announced a revised securities trading policy, effective from November 20, 2025, in compliance with ASX Listing Rule 12.10. This update reflects the company’s commitment to maintaining transparency and regulatory compliance, potentially impacting its operations and stakeholder trust.

Nido Education Limited Navigates Challenges and Eyes Growth Opportunities in Early Education Sector
Nov 3, 2025

Nido Education Limited is navigating a challenging year in the early education sector due to economic factors such as cost of living and reduced birth rates, though recent data shows an increase in births. The company projects its Service EBITDA to range between $28.5-$30 million by the end of 2025, with a Group EBITDA of $16.5 to $18 million. Despite macroeconomic challenges, Nido is committed to its incubation growth strategy, aiming to acquire 100 services over 5-6 years. The company is poised to benefit from upcoming government policy changes that will increase childcare subsidies, potentially impacting 100,000 to 190,000 families. Nido is also exploring opportunities to capitalize on the reduced earnings multiples in the childcare acquisition market, which could enhance shareholder value.

Nido Education Announces Changes in Director Holdings
Oct 14, 2025

Nido Education Limited announced changes in its substantial holding and director’s interest notices. The changes involve the cessation of voluntary escrow on certain shares, impacting the holdings of directors Mathew Edwards and Mark Kerr. This announcement could influence stakeholder perceptions and the company’s market positioning.

Nido Education Limited Announces Cessation of Securities
Oct 14, 2025

Nido Education Limited announced the cessation of certain securities, including 572,986 ordinary fully paid shares due to an on-market buy-back and 25,414 options that lapsed because the conditions were not met. This move could impact the company’s capital structure and potentially influence its market positioning by reducing the number of outstanding shares.

Nido Education Limited Announces Changes in Director Shareholdings
Sep 25, 2025

Nido Education Limited has announced changes in the shareholdings of its key management personnel. Mr. Mathew Edwards acquired a total of 650,000 shares over two transactions, while Mr. Joe Dicks acquired 78,000 shares. Additionally, CFO Tom Herring purchased 152,500 shares, bringing the total shares held by key management personnel to 2,984,441. This increase in shareholdings by key management may indicate confidence in the company’s future prospects and could positively impact stakeholder perceptions.

Nido Education to Release Shares from Voluntary Escrow
Sep 23, 2025

Nido Education Limited announced the release of 114,908,768 fully paid ordinary shares from voluntary escrow on 12 October 2025. This release involves shares held by certain directors, management team executives, and an existing shareholder, potentially impacting the company’s market liquidity and shareholder composition.

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: Nov 18, 2025