Fact based stock research
Nutanix (NasdaqGS:NTNX)

US67059N1081

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Nutanix stock research in summary

nutanix.com

ANALYSIS: With an Obermatt Combined Rank of 67 (better than 67% compared with investment alternatives), Nutanix (Application Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Nutanix are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), show above-average growth (Growth Rank of 83) but are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 67, is a buy recommendation based on Nutanix's financial characteristics. As the company Nutanix's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 51) and above-average growth (Obermatt Growth Rank of 83), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 46) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	51
Growth Rank	83
Safety Rank	46
Combined Rank	67

Country	USA
Industry	Application Software
Index	NASDAQ
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Nutanix

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	85	73	51
GROWTH
GROWTH	84	53	81	83
SAFETY
SAFETY	2	18	19	46
SENTIMENT
SENTIMENT	n/a	63	79	^new
360° VIEW
360° VIEW	n/a	61	87	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 31-Oct-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Nutanix is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	42	85	73	51
GROWTH
GROWTH	84	53	81	83
SAFETY
SAFETY	2	18	19	46
COMBINED
COMBINED	33	51	76	67

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Nutanix the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Nutanix shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators where three out of four are below average for Nutanix. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 100, which means that the stock price is lower compared with invested capital than for 100% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 38 which means the stock price compared with what market professionals expect for future profits is higher than 62% of comparable companies, indicating a low value concerning Nutanix's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 100 and for the dividend yields rank which is lower than for 99% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Nutanix's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Nutanix, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	56	76	51	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	4	19	44	34
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	97	100	100
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	42	85	73	51

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Nutanix; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 83 (better than 83% compared with alternatives) for 2024, Nutanix shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Nutanix. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Capital Growth is also above 43% of competitors with a rank of 72, and Stock Returns with the rank of 71 is also an outperformance. Only Profit Growth is low with a rank of 43 which means that currently, professionals expect the company to grow its profits less than 57% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 83, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Nutanix is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	44	39	75	85
PROFIT GROWTH
PROFIT GROWTH	1	76	70	43
CAPITAL GROWTH
CAPITAL GROWTH	n/a	34	40	72
STOCK RETURNS
STOCK RETURNS	71	49	81	71
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	84	53	81	83

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Nutanix.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company Nutanix has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Nutanix is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Nutanix and the other two below average. Leverage is at a rank of 52 meaning the company has a below-average debt-to-equity ratio. It has less debt than 52% of its competitors.Refinancing is at a rank of 33, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 67% of its competitors. Liquidity is at a rank of 47, meaning that the company generates less profit to service its debt than 53% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 46 (worse than 54% compared with alternatives), Nutanix has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Nutanix are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Nutanix and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	31	1	1	52
REFINANCING
REFINANCING	18	77	61	33
LIQUIDITY
LIQUIDITY	1	10	42	47
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	2	18	19	46

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Nutanix and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	39	50	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	58	100	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	60	^new
MARKET PULSE
MARKET PULSE	n/a	40	70	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	63	79	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Nutanix.
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