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Nuix Ltd. (AU:NXL)
ASX:NXL
Australian Market

Nuix Ltd. (NXL) AI Stock Analysis

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AU

Nuix Ltd.

(Sydney:NXL)

57Neutral
Nuix Ltd. demonstrates strong financial performance with improvements in revenue and operational efficiencies, supported by a solid balance sheet. However, technical indicators suggest bearish market momentum, and the valuation metrics indicate that the stock is significantly overvalued. These challenges temper the overall score despite the company's positive financial health.

Nuix Ltd. (NXL) vs. S&P 500 (SPY)

Nuix Ltd. Business Overview & Revenue Model

Company DescriptionNuix Ltd. (NXL) is a technology company that operates within the software and services sector, specializing in investigative analytics and intelligence software. The company provides powerful tools for extracting knowledge from large amounts of unstructured data, enabling organizations to gain insights and make informed decisions. Nuix's core products and services are utilized in legal, cybersecurity, and investigative fields, offering solutions for eDiscovery, forensics, information governance, and regulatory compliance.
How the Company Makes MoneyNuix Ltd. generates revenue primarily through the sale of software licenses and subscriptions. The company offers its products and services to a diverse range of clients, including corporations, government agencies, and legal firms. Key revenue streams include licensing fees for its software products, recurring subscription fees for its cloud-based services, and professional services such as consulting and training. Nuix's ability to secure significant partnerships and contracts, particularly in the legal and cybersecurity sectors, plays a crucial role in its earnings. Additionally, the company's focus on innovation and continuous product development helps maintain its competitive edge and drives revenue growth.

Nuix Ltd. Financial Statement Overview

Summary
Nuix Ltd. has made commendable improvements in revenue and profitability metrics, with strong operational cash flows and a solid balance sheet. The company exhibits low leverage and a high equity ratio, fostering financial stability. While operational efficiencies are improving, enhancing net profitability remains a key area for growth.
Income Statement
72
Positive
Nuix Ltd. has shown a positive revenue growth trend, increasing from 182 million AUD in 2023 to 221 million AUD in 2024, reflecting a growth rate of approximately 20.9%. The Gross Profit Margin for 2024 stands at 90.2%, indicating efficient cost management. The company has improved its EBIT and EBITDA margins to 3% and 27.9% respectively, showing enhanced operational efficiency compared to negative EBIT in previous years. However, the Net Profit Margin is relatively low at 2.3%, suggesting room for improvement in net profitability.
Balance Sheet
68
Positive
The balance sheet of Nuix Ltd. shows a healthy Equity Ratio of 72.2%, highlighting strong financial stability and low leverage. The Debt-to-Equity ratio is low at 0.03, indicating minimal reliance on debt for financing. The Return on Equity improved to 1.8% in 2024, up from negative figures in prior years, though it remains modest. The company's financial position is robust, but there's potential to enhance returns to shareholders.
Cash Flow
75
Positive
Nuix Ltd. demonstrates strong cash flow management, with Free Cash Flow improving significantly to 49.6 million AUD in 2024 from negative levels in previous years. The Operating Cash Flow to Net Income ratio is 10.02, indicating efficient conversion of profits to cash flow. The Free Cash Flow to Net Income ratio is 9.87, underscoring robust cash generation. However, the significant capital expenditures in the past suggest a need for ongoing investment to sustain growth.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
227.38M220.62M182.47M152.31M176.07M175.86M
Gross Profit
205.12M198.97M119.13M98.29M126.14M126.77M
EBIT
40.41M6.63M-7.12M-24.75M34.22M33.52M
EBITDA
62.84M61.46M35.56M11.95M27.42M61.71M
Net Income Common Stockholders
-544.00K5.03M-5.59M-22.79M-1.41M23.59M
Balance SheetCash, Cash Equivalents and Short-Term Investments
30.70M38.03M29.59M46.85M70.86M38.54M
Total Assets
394.70M397.08M428.19M421.66M405.45M347.30M
Total Debt
0.009.77M11.12M13.65M11.36M40.77M
Net Debt
-30.70M-28.26M-18.47M-33.20M-59.50M2.24M
Total Liabilities
102.90M110.85M157.34M152.59M124.38M151.83M
Stockholders Equity
291.80M286.69M270.84M269.07M281.07M195.48M
Cash FlowFree Cash Flow
32.21M49.60M-5.97M-14.63M-24.51M13.73M
Operating Cash Flow
39.56M50.34M32.56M30.12M10.80M58.56M
Investing Cash Flow
-17.48M-38.45M-45.42M-51.61M-35.31M-44.83M
Financing Cash Flow
-2.69M-3.45M-4.29M-2.73M58.10M-2.96M

Nuix Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.40
Price Trends
50DMA
2.77
Negative
100DMA
3.96
Negative
200DMA
4.90
Negative
Market Momentum
MACD
-0.13
Negative
RSI
45.75
Neutral
STOCH
82.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NXL, the sentiment is Negative. The current price of 2.4 is above the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.77, and below the 200-day MA of 4.90, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NXL.

Nuix Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUWTC
78
Outperform
$33.76B136.9514.13%0.20%-1.78%12.79%
AUXRO
71
Outperform
AU$27.65B132.6812.98%23.95%
AUTNE
70
Outperform
AU$10.83B90.5434.02%0.73%17.97%14.29%
AUCPU
65
Neutral
$24.32B23.3227.30%2.14%-0.84%93.59%
60
Neutral
$11.59B10.44-7.23%2.94%7.46%-10.66%
AUNXL
57
Neutral
AU$793.76M308.39-0.19%17.64%96.99%
AUAPX
44
Neutral
$385.81M-19.32%-13.61%86.37%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NXL
Nuix Ltd.
2.40
-0.58
-19.46%
AU:APX
Appen
1.46
0.84
135.48%
AU:TNE
Technology One Limited
33.10
17.22
108.41%
AU:XRO
Xero Limited
180.02
54.75
43.71%
AU:CPU
Computershare Limited
41.72
16.04
62.45%
AU:WTC
Wisetech Global
101.50
3.83
3.92%

Nuix Ltd. Corporate Events

Australian Ethical Increases Stake in Nuix Limited
May 9, 2025

Nuix Limited, a company listed on the ASX, has experienced a change in the substantial holding of its shares. Australian Ethical Investment Limited, through State Street Australia Ltd, has increased its voting power in Nuix from 5.10% to 6.10%, reflecting a rise in the number of shares held from 16,875,771 to 20,185,454. This change indicates a growing interest and investment in Nuix by Australian Ethical Investment, potentially impacting the company’s market positioning and signaling confidence in its future prospects.

Nuix Ltd. Adjusts Financial Targets Amid Uncertain Market Conditions
May 6, 2025

Nuix Ltd. has announced a trading update indicating a lengthening procurement cycle for larger transactions and increased uncertainty in the geopolitical and economic landscape, affecting the predictability of deal closures. As a result, Nuix has withdrawn its previously estimated Annualised Contract Value target range and strategic targets related to revenue growth and cash flow. Despite these challenges, the company remains confident in its growth strategy and the strength of its deal pipeline, emphasizing that the timing of deal closures is the primary issue rather than the quality of the pipeline.

Nuix to Release Over 1.5 Million Shares from Escrow
Apr 28, 2025

Nuix Limited has announced the release of 1,507,065 fully paid ordinary shares from voluntary escrow, effective 6 May 2025. These shares were initially issued as part of the acquisition of Topos Labs, Inc., and their release marks a significant step in finalizing this transaction, potentially impacting the company’s market positioning and shareholder value.

Nuix Limited Announces New Substantial Holders
Apr 22, 2025

Nuix Limited has announced that ECP Asset Management Pty Ltd and EC Pohl & Co Pty Ltd have become substantial holders in the company. This change in substantial holding, with a voting power of 5.22%, signifies a notable shift in the company’s shareholder structure, potentially impacting its governance and strategic direction.

Nuix Ltd. Clarifies Delay in Director’s Interest Notice
Apr 17, 2025

Nuix Ltd. addressed a query from the Australian Securities Exchange regarding a delay in lodging a change of director’s interest notice. The delay was attributed to an inadvertent error by a third party, specifically a financial advisor, who failed to include Nuix personnel in an email confirmation. Nuix has reaffirmed its compliance with ASX listing rules and has reminded its directors of the importance of adhering to notification requirements to prevent future errors.

UBS Group AG Increases Stake in Nuix Limited
Apr 14, 2025

Nuix Limited has experienced a change in the substantial holding of its shares, as UBS Group AG and its related bodies corporate have increased their voting power from 5.13% to 6.32%. This change in shareholding may impact Nuix’s governance and decision-making processes, as UBS Group AG now holds a more significant influence over the company’s voting shares.

Nuix Announces Change in Sydney Registry Address
Apr 10, 2025

Nuix Limited has announced a change in the address of its Sydney registry office, effective from April 14, 2025. This move is in accordance with ASX Listing Rule 3.15.1 and involves the registry, MUFG Corporate Markets (AU) Limited, relocating to Liberty Place on Castlereagh Street. This change is part of the company’s ongoing operational adjustments and is expected to streamline its registry processes, potentially impacting its stakeholders positively by enhancing service efficiency.

Nuix Ltd. Announces Issuance of Unquoted Equity Securities
Apr 9, 2025

Nuix Ltd. has announced the issuance and conversion of 1,385,888 unquoted equity securities, which are now fully paid ordinary shares. This move is part of the company’s ongoing strategy to manage its equity structure and could influence its market positioning by potentially increasing liquidity and shareholder value.

Nuix Limited Reports FY25 Trading Update Amid Economic Challenges
Apr 7, 2025

Nuix Limited has provided a trading update for FY25, highlighting a strong sales pipeline despite challenges in the geopolitical and economic landscape affecting deal closure predictability. The company anticipates its Annualised Contract Value growth to be at the lower end of the 11-16% range. Nuix is advancing the rollout of Nuix Neo and expects revenue growth to surpass operating cost growth, excluding non-operational legal costs, and aims to be Underlying Cash Flow positive for the year.

Australian Ethical Investment Becomes Substantial Holder in Nuix Limited
Apr 4, 2025

Nuix Limited, a company involved in data analytics and software solutions, has announced that Australian Ethical Investment Limited has become a substantial holder in the company. This development signifies that Australian Ethical Investment now holds a 5.10% voting power in Nuix Limited, potentially influencing the company’s strategic decisions and impacting its market position.

Nuix Ltd. Director Increases Stake with New Share Acquisition
Apr 2, 2025

Nuix Ltd. announced a change in the director’s interest, with Jeffrey Laurence Bleich acquiring 10,000 ordinary shares indirectly through the Jeffrey and Rebecca Bleich Living Trust. This transaction, valued at $33,700, was conducted as an on-market trade. The acquisition reflects a strategic move by the director to increase his stake in the company, potentially signaling confidence in Nuix’s future prospects and stability, which could influence stakeholder perception positively.

UBS Group AG Acquires Substantial Stake in Nuix Ltd.
Mar 28, 2025

UBS Group AG and its related bodies corporate have become a substantial holder in Nuix Ltd., acquiring a 5.13% voting power through various branches and fund management entities. This acquisition signifies a strategic move by UBS, potentially impacting Nuix’s market dynamics and shareholder structure, as UBS gains significant influence over the company’s voting shares.

Nuix Ltd. Issues Correction Notice on ASX Filing
Mar 25, 2025

Nuix Ltd., a global leader in investigative analytics software, has issued a correction notice regarding an error in its Appendix 3Y filed with the Australian Securities Exchange. The company clarified that the number of securities held prior to the change should have been recorded as ‘Nil.’ This correction ensures transparency and accuracy in the company’s reporting, maintaining trust with stakeholders and compliance with regulatory requirements.

Nuix Director Increases Shareholding
Mar 18, 2025

Nuix Limited has announced a change in the director’s interest, specifically for Director Jonathan Rubinsztein. The change involves the acquisition of 70,000 ordinary shares through an on-market trade, increasing his indirect holdings in the company. This update reflects a strategic move by the director to increase his stake in the company, potentially signaling confidence in the company’s future performance.

Nuix Limited Releases Interim Financial Report
Feb 23, 2025

Nuix Limited has released its consolidated interim financial report for the half-year ending December 31, 2024. This financial disclosure provides stakeholders with key insights into the company’s performance and operational strategies, reflecting its ongoing commitment to transparency and accountability.

Nuix Ltd. Reports Strong 1H25 Financial Performance with Increased ACV and Cash EBITDA
Feb 23, 2025

Nuix Ltd. reported its first half of 2025 financial results, showing an 8.3% growth in Annualised Contract Value (ACV) compared to the prior corresponding period. The company also recorded a 30.6% increase in Cash EBITDA, reaching $13.4 million. Despite a decline in Net Dollar Retention and challenges in customer upsell, Nuix is experiencing continued momentum with its Nuix Neo rollout and has increased its research and development investment to support future growth. Overall, the company remains cash flow positive with a cash balance of $30.7 million, and anticipates ACV growth to be between 11% and 16% for the full fiscal year.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.