Nutanix (NTNX) AI Stock Analysis

• Market Cap: $19.73B
• Dividend Yield: N/A
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 105128.6
• Beta (1Y): 1.49
• Revenue Growth: 16.11%
• EPS Growth: N/A
• Country: US
• Employees: 7,150
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.42
• Shares Outstanding: 268,077,450
• 10 Day Avg. Volume: 3,132,548
• 30 Day Avg. Volume: 3,113,524
• PEG Ratio: -0.07
• Price to Book (P/B): 21.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -53.87
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: 6.22
• 1Y Price Target: $93.10
• Price Target Upside: 27.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $80.00 ▲(9.95%Upside)

Nutanix demonstrates strong operational performance and improving profitability, significantly impacting its overall score. However, high valuation concerns and balance sheet risks due to negative equity and leverage reduce the score. The positive earnings call supports confidence in strategic growth initiatives, offsetting some valuation risks.

Positive Factors

Financial Performance

Nutanix delivered F3Q results above guidance, with strong new logo growth and product revenues growing 35% year-over-year.

Market Expansion

The company's ability to gain market share from competitors like VMware is driving outsized growth.

Strategic Partnerships

Nutanix continues to make significant strides via the land and expand strategy with the Dell/Cisco partnerships, with new logos up over 20% year-over-year.

Negative Factors

Federal Business Impact

Expansion with existing customers was adversely impacted by Nutanix's US federal business, with visibility remaining limited owing to longer lead cycles.

Sales Cycle Challenges

Increased macroeconomic uncertainty is resulting in elongated sales cycles due to the increased scrutiny on spend.

Stock Price Movement

Despite positive estimates, the impact might be dampened by a significant year-to-date stock price move.

Nutanix Business Overview & Revenue Model

Company Description

Nutanix, Inc. provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. The company offers Acropolis converges virtualization, enterprise storage services, and networking visualization and security services; Acropolis Hypervisor, an enterprise-grade virtualization solution; Nutanix Karbon for automated deployment and management of Kubernetes clusters to simplify the provisioning, operations, and lifecycle management of cloud-native environments; and Nutanix Clusters solution. It also offers Prism Pro; Nutanix Beam, a cloud governance; and Nutanix Calm, an application marketplace, which provides automation services that streamline application lifecycle management and deliver powerful hybrid cloud orchestration. In addition, the company provides Nutanix Files, an enterprise-grade NFS and SMB files services; Nutanix Objects, a S3-compatible object services; Nutanix Era, a database automation and database-as-a-service solution; and Nutanix Frame, a desktop-as-a-service product to deliver virtual apps or desktops to users from multiple public cloud environments and/or an enterprises private cloud datacenter. Further, it offers products support, and consulting and implementation services. It serves customers in a range of industries, including automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications, as well as service providers. The company was incorporated in 2009 and is headquartered in San Jose, California.

How the Company Makes Money

Nutanix generates revenue primarily through the sale of its software products and solutions, subscription services, and support contracts. Its revenue model is built around two key streams: product revenue, which includes software licenses and hardware sales, and support and entitlements revenue, which consists of software support, hardware maintenance, and other professional services. A significant portion of Nutanix's earnings comes from its subscription-based offerings, which provide recurring revenue and involve long-term contracts with customers. Additionally, the company benefits from strategic partnerships with technology companies and cloud service providers, enhancing its market reach and customer base.

Nutanix Financial Statement Overview

Summary

Nutanix has shown strong improvements in profitability and cash flow metrics, with a significant revenue growth rate of 13.2%. However, the balance sheet poses concerns with negative equity and high leverage, which dampen the overall financial performance.

Income Statement

Nutanix has shown substantial improvement in its income statement metrics. The TTM (Trailing-Twelve-Months) gross profit margin is strong at approximately 86.4%, with a notable improvement in net profit margin to 0.97% compared to a net loss in previous years. Revenue growth rate from 2024 to TTM is approximately 13.2%, indicating healthy top-line growth. EBIT and EBITDA margins have also improved significantly, indicating better operational management.

Balance Sheet

The balance sheet reflects some concerns, mainly due to negative stockholders' equity, which indicates that liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, but the high level of debt relative to assets suggests potential leverage risks. Return on equity calculation is not feasible due to negative equity; however, improvements in net income suggest potential future stability.

Cash Flow

Cash flow metrics for Nutanix are strong, highlighted by a 28.3% increase in free cash flow in the TTM period. The operating cash flow to net income ratio of approximately 35.8 indicates efficient cash generation relative to net income. Free cash flow to net income ratio is high, further confirming the company's ability to generate cash relative to profits.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.43B	2.15B	1.86B	1.58B	1.39B	1.31B
	Gross Profit
2.10B	1.82B	1.53B	1.26B	1.10B	1.02B
	EBIT
129.15M	7.56M	-207.15M	-457.44M	-660.78M	-828.92M
	EBITDA
208.57M	141.26M	-57.73M	-594.09M	-806.71M	-730.14M
	Net Income Common Stockholders
23.61M	-124.78M	-254.56M	-797.54M	-1.03B	-872.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.88B	994.34M	1.44B	1.32B	1.21B	719.78M
	Total Assets
3.10B	2.14B	2.53B	2.37B	2.28B	1.77B
	Total Debt
1.49B	684.60M	1.32B	1.43B	1.18B	643.59M
	Net Debt
615.30M	29.32M	803.74M	1.03B	899.24M	324.85M
	Total Liabilities
3.81B	2.87B	3.23B	3.16B	3.29B	2.04B
	Stockholders Equity
-711.43M	-728.15M	-707.42M	-790.17M	-1.01B	-274.98M
Cash Flow		Free Cash Flow
766.65M	597.68M	207.00M	18.48M	-158.46M	-249.37M
	Operating Cash Flow
846.62M	672.93M	272.40M	67.54M	-99.81M	-159.88M
	Investing Cash Flow
-22.66M	529.59M	-49.78M	-54.19M	-597.15M	24.56M
	Financing Cash Flow
-551.49M	-1.06B	-112.71M	103.64M	663.85M	57.80M

Nutanix Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 72.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTNX, the sentiment is Neutral. The current price of 72.76 is below the 20-day moving average (MA) of 75.99, above the 50-day MA of 72.68, and above the 200-day MA of 67.77, indicating a neutral trend. The MACD of -0.59 indicates Positive momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 27.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTNX.

Nutanix Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NET	74 Outperform	$62.88B	―	-7.35%	―	27.79%	56.19%
CYBR	73 Outperform	$19.54B	1,777.39	-5.36%	―	35.12%	-191.84%
ZS	72 Outperform	$47.55B	―	-2.68%	―	25.46%	49.20%
NTNX	66 Neutral	$19.73B	105,128.57	6.85%	―	16.11%	―
IOT	66 Neutral	$22.03B	―	-11.77%	―	31.72%	57.55%
OKTA	65 Neutral	$17.33B	154.35	2.08%	―	13.51%	―
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%

Nutanix Corporate Events

Nutanix Appoints Eric K. Brandt to Board

On May 16, 2025, Nutanix announced the addition of Eric K. Brandt to its board of directors, effective May 15, 2025. Brandt brings extensive leadership and finance experience, having held significant roles in major companies such as Broadcom and Avanir Pharmaceuticals. His expertise is expected to contribute to Nutanix’s focus on sustainable and profitable growth. Concurrently, David Humphrey resigned from the board, with his tenure marked by significant transformation and growth for Nutanix since Bain Capital’s investment in 2020. Despite his departure, Bain Capital remains a significant stakeholder, with Max de Groen continuing on the board.

The most recent analyst rating on (NTNX) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.

Nutanix Appoints Eric Brandt to Board of Directors

On May 15, 2025, Nutanix appointed Eric K. Brandt to its board of directors, bringing his extensive leadership and finance experience to the company. Brandt’s appointment is expected to support Nutanix’s focus on sustainable and profitable growth. Concurrently, David Humphrey resigned from the board, having joined as part of Bain Capital’s investment in 2020. His departure is not due to any disagreements, and Bain Capital remains a significant stakeholder, with Max de Groen continuing on the board.

The most recent analyst rating on (NTNX) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Nutanix stock, see the NTNX Stock Forecast page.