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Nick Scali

ASX:NCK
Snowflake Description

Excellent balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NCK
ASX
A$492M
Market Cap
  1. Home
  2. AU
  3. Retail
Company description

Nick Scali Limited, together with its subsidiaries, engages in sourcing and retailing household furniture and related accessories in Australia and New Zealand. The last earnings update was 103 days ago. More info.


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NCK Share Price and Events
7 Day Returns
0.3%
ASX:NCK
1%
AU Specialty Retail
1.1%
AU Market
1 Year Returns
-11%
ASX:NCK
-3.6%
AU Specialty Retail
2.6%
AU Market
NCK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nick Scali (NCK) 0.3% -5% 5% -11% 35.4% 133.8%
AU Specialty Retail 1% -1.4% 9.7% -3.6% -3.6% 18.5%
AU Market 1.1% 1.6% 4.4% 2.6% 17.9% 7.7%
1 Year Return vs Industry and Market
  • NCK underperformed the Specialty Retail industry which returned -3.6% over the past year.
  • NCK underperformed the Market in Australia which returned 2.6% over the past year.
Price Volatility
NCK
Industry
5yr Volatility vs Market

Value

 Is Nick Scali undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nick Scali to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nick Scali.

ASX:NCK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:NCK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.898 (1 + (1- 30%) (6.84%))
0.96
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.96 * 5.96%)
8.03%

Discounted Cash Flow Calculation for ASX:NCK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nick Scali is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:NCK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.03%)
2019 28.33 Est @ 1.01% 26.22
2020 28.73 Est @ 1.4% 24.61
2021 29.21 Est @ 1.67% 23.16
2022 29.75 Est @ 1.87% 21.84
2023 30.35 Est @ 2% 20.62
2024 30.98 Est @ 2.09% 19.49
2025 31.65 Est @ 2.16% 18.43
2026 32.35 Est @ 2.2% 17.43
2027 33.07 Est @ 2.24% 16.50
2028 33.82 Est @ 2.26% 15.62
Present value of next 10 years cash flows A$203.92
ASX:NCK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$33.82 × (1 + 2.31%) ÷ (8.03% – 2.31%)
A$604.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$604.67 ÷ (1 + 8.03%)10
A$279.19
ASX:NCK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$203.92 + A$279.19
A$483.11
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$483.11 / 81.00
A$5.96
ASX:NCK Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.96
Current discount Discount to share price of A$6.08
= -1 x (A$6.08 - A$5.96) / A$5.96
-1.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Nick Scali is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nick Scali's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nick Scali's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NCK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.53
ASX:NCK Share Price ** ASX (2019-05-17) in AUD A$6.08
Australia Specialty Retail Industry PE Ratio Median Figure of 24 Publicly-Listed Specialty Retail Companies 11.83x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nick Scali.

ASX:NCK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NCK Share Price ÷ EPS (both in AUD)

= 6.08 ÷ 0.53

11.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nick Scali is good value based on earnings compared to the AU Specialty Retail industry average.
  • Nick Scali is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Nick Scali's expected growth come at a high price?
Raw Data
ASX:NCK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
6%per year
Australia Specialty Retail Industry PEG Ratio Median Figure of 19 Publicly-Listed Specialty Retail Companies 1.43x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

ASX:NCK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.49x ÷ 6%

1.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nick Scali is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Nick Scali's assets?
Raw Data
ASX:NCK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.10
ASX:NCK Share Price * ASX (2019-05-17) in AUD A$6.08
Australia Specialty Retail Industry PB Ratio Median Figure of 27 Publicly-Listed Specialty Retail Companies 1.95x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.65x
ASX:NCK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NCK Share Price ÷ Book Value per Share (both in AUD)

= 6.08 ÷ 1.10

5.55x

* Primary Listing of Nick Scali.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nick Scali is overvalued based on assets compared to the AU Specialty Retail industry average.
X
Value checks
We assess Nick Scali's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Nick Scali has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Nick Scali expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nick Scali expected to grow at an attractive rate?
  • Nick Scali's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Nick Scali's earnings growth is positive but not above the Australia market average.
  • Nick Scali's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NCK Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NCK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 6%
ASX:NCK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 7.1%
Australia Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 14%
Australia Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:NCK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NCK Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 314 50 2
2020-06-30 290 47 2
2019-06-30 272 44 2
ASX:NCK Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 264 47 43
2018-09-30 257 45 42
2018-06-30 251 43 41
2018-03-31 247 44 41
2017-12-31 242 45 40
2017-09-30 238 44 39
2017-06-30 233 43 37
2017-03-31 226 42 35
2016-12-31 219 41 32
2016-09-30 211 36 29
2016-06-30 203 32 26
2016-03-31 192 27 24

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nick Scali's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
  • Nick Scali's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:NCK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Nick Scali Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NCK Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.62 0.63 0.60 2.00
2020-06-30 0.57 0.59 0.56 2.00
2019-06-30 0.55 0.57 0.53 2.00
ASX:NCK Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.53
2018-09-30 0.52
2018-06-30 0.51
2018-03-31 0.50
2017-12-31 0.50
2017-09-30 0.48
2017-06-30 0.46
2017-03-31 0.43
2016-12-31 0.40
2016-09-30 0.36
2016-06-30 0.32
2016-03-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nick Scali is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Nick Scali's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nick Scali has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nick Scali performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nick Scali's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nick Scali has delivered over 20% year on year earnings growth in the past 5 years.
  • Nick Scali's 1-year earnings growth is less than its 5-year average (6.3% vs 24.2%)
  • Nick Scali's earnings growth has not exceeded the AU Specialty Retail industry average in the past year (6.3% vs 6.3%).
Earnings and Revenue History
Nick Scali's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nick Scali Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NCK Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 263.89 42.85 101.58
2018-09-30 257.33 41.92 98.58
2018-06-30 250.77 40.98 95.59
2018-03-31 246.63 40.64 94.19
2017-12-31 242.49 40.30 92.79
2017-09-30 237.70 38.77 91.65
2017-06-30 232.91 37.24 90.50
2017-03-31 225.93 34.85 88.28
2016-12-31 218.96 32.47 86.06
2016-09-30 211.00 29.31 84.94
2016-06-30 203.05 26.15 83.83
2016-03-31 191.81 23.66 80.65
2015-12-31 180.57 21.16 77.47
2015-09-30 168.16 19.12 73.21
2015-06-30 155.74 17.08 68.96
2015-03-31 151.56 16.74 66.78
2014-12-31 147.38 16.41 64.60
2014-09-30 144.41 15.32 64.35
2014-06-30 141.44 14.24 64.10
2014-03-31 138.82 15.83 63.37
2013-12-31 136.19 17.43 62.63
2013-09-30 131.81 16.71 60.86
2013-06-30 127.43 16.00 59.09
2013-03-31 122.98 13.11 57.45
2012-12-31 118.52 10.21 55.82
2012-09-30 113.96 9.62 54.60
2012-06-30 109.39 9.02 53.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nick Scali made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Nick Scali used its assets more efficiently than the AU Specialty Retail industry average last year based on Return on Assets.
  • Nick Scali has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nick Scali's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nick Scali has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nick Scali's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nick Scali's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nick Scali is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nick Scali's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nick Scali's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nick Scali Company Filings, last reported 4 months ago.

ASX:NCK Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 88.92 33.66 38.19
2018-09-30 88.92 33.66 38.19
2018-06-30 83.66 33.66 36.59
2018-03-31 83.66 33.66 36.59
2017-12-31 77.80 32.16 28.24
2017-09-30 77.80 32.16 28.24
2017-06-30 70.38 21.16 39.94
2017-03-31 70.38 21.16 39.94
2016-12-31 66.34 21.16 37.70
2016-09-30 66.34 21.16 37.70
2016-06-30 57.79 21.16 37.08
2016-03-31 57.79 21.16 37.08
2015-12-31 53.36 18.66 25.08
2015-09-30 53.36 18.66 25.08
2015-06-30 46.23 12.06 33.95
2015-03-31 46.23 12.06 33.95
2014-12-31 44.94 9.76 31.64
2014-09-30 44.94 9.76 31.64
2014-06-30 40.13 6.76 35.91
2014-03-31 40.13 6.76 35.91
2013-12-31 39.00 6.76 27.24
2013-09-30 39.00 6.76 27.24
2013-06-30 36.33 6.76 27.29
2013-03-31 36.33 6.76 27.29
2012-12-31 31.07 6.76 19.29
2012-09-30 31.07 6.76 19.29
2012-06-30 27.35 3.50 20.60
  • Nick Scali's level of debt (37.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (17.3% vs 37.9% today).
  • Debt is well covered by operating cash flow (138.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 204x coverage).
X
Financial health checks
We assess Nick Scali's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nick Scali has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Nick Scali's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.06%
Current annual income from Nick Scali dividends. Estimated to be 7.76% next year.
If you bought A$2,000 of Nick Scali shares you are expected to receive A$161 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nick Scali's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.65%).
  • Nick Scali's dividend is above the markets top 25% of dividend payers in Australia (5.83%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:NCK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Australia Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 4.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:NCK Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30 0.49 3.00
2020-06-30 0.46 3.00
2019-06-30 0.47 3.00
ASX:NCK Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-05 0.490 8.265
2018-08-15 0.400 7.138
2017-08-09 0.400 6.018
2017-02-13 0.280 4.145
2016-08-10 0.280 4.713
2016-02-08 0.180 4.096
2015-08-11 0.160 4.114
2015-02-11 0.140 4.115
2014-08-13 0.140 4.958
2014-02-13 0.120 4.454
2013-08-14 0.120 4.284
2012-08-09 0.070 3.878
2012-02-09 0.090 6.286
2011-08-10 0.090 5.551
2011-02-10 0.090 5.320
2010-08-13 0.090 5.349
2010-02-18 0.090 6.047
2009-08-21 0.060 4.712

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Nick Scali's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Nick Scali's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nick Scali afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nick Scali has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Nick Scali's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tony Scali
COMPENSATION A$1,288,093
CEO Bio

Mr. Anthony J. Scali, BCom, also known as Tony, serves as the Managing Director and has been Executive Director of Nick Scali & Co. Pty Ltd. and Nick Scali Limited since July 25, 1983. Mr. Scali served as Senior Vice President, Sales Manager and Partner of Lapre Scali and Company Insurance Services, LLC. He has over 30 years experience in retail and the selection and direct sourcing of product from manufacturers both in Australia and overseas. He is responsible for the overall operation of Nick Scali & Co. Pty Ltd. and identifying current and future trends in the furniture industry, a key function he leads is the direct sourcing of suitable product from manufacturers (principally overseas) for Nick Scali to retail. Mr. Scali holds a Bachelor of Commerce degree from the University of New South Wales.

CEO Compensation
  • Tony's compensation has been consistent with company performance over the past year.
  • Tony's remuneration is about average for companies of similar size in Australia.
Management Team

Tony Scali

TITLE
MD & Executive Director
COMPENSATION
A$1M

Christopher Malley

TITLE
Chief Financial Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Nick Scali board of directors in years:

15.1
Average Tenure
76
Average Age
  • The average tenure for the Nick Scali board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

John Ingram

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$200K
AGE
76
TENURE
15.1 yrs

Tony Scali

TITLE
MD & Executive Director
COMPENSATION
A$1M
TENURE
35.8 yrs

Greg Laurie

TITLE
Independent Non-Executive Director
COMPENSATION
A$120K
AGE
76
TENURE
15.1 yrs

Carole Molyneux

TITLE
Independent Non-Executive Director
COMPENSATION
A$112K
TENURE
4.9 yrs

Stephen Goddard

TITLE
Independent Non-Executive Director
COMPENSATION
A$33K
AGE
60
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
14. May 19 Sell Magellan Asset Management Limited Company 01. Sep 17 10. May 19 -4,147,390 A$6.33 A$-26,272,735
14. May 19 Buy Magellan Asset Management Limited Company 01. Sep 17 13. Dec 18 3,293,653 A$6.15 A$20,245,697
14. May 19 Buy Ethical Partners Management Fund Managment Pty Ltd Company 06. Feb 19 10. May 19 4,743,203 A$6.21 A$27,955,776
14. May 19 Sell Perpetual Limited Company 29. Apr 19 10. May 19 -1,612,037 A$6.40 A$-9,906,602
14. May 19 Buy Perpetual Limited Company 07. May 19 07. May 19 139,962 A$5.86 A$818,145
12. Mar 19 Sell Perpetual Limited Company 06. Feb 19 08. Mar 19 -1,435,088 A$5.81 A$-8,337,401
12. Mar 19 Buy Perpetual Limited Company 27. Feb 19 27. Feb 19 102,638 A$6.08 A$624,039
31. Jan 19 Sell Perpetual Limited Company 14. Jun 18 21. Sep 18 -1,236,179 A$6.33 A$-7,825,176
31. Jan 19 Buy Perpetual Limited Company 30. Jul 18 11. Jan 19 360,755 A$5.26 A$1,898,468
07. Jan 19 Buy Realindex Investments Pty Limited Company 07. Apr 16 12. Dec 18 734,492 A$5.93 A$4,358,213
07. Jan 19 Sell Colonial First State Asset Management (Australia) Limited Company 06. May 16 11. Dec 18 -2,486,037 A$6.61 A$-15,877,571
07. Jan 19 Buy Colonial First State Asset Management (Australia) Limited Company 11. Apr 16 03. Jan 19 2,050,481 A$6.07 A$11,837,545
17. Dec 18 Buy John Ingram Individual 11. Dec 18 17. Dec 18 50,000 A$5.37 A$265,745
09. Dec 18 Buy Carole Molyneux Individual 06. Dec 18 06. Dec 18 7,500 A$5.33 A$39,965
31. May 18 Sell Perpetual Limited Company 10. Feb 16 29. May 18 -4,546,820 A$6.30 A$-28,664,585
X
Management checks
We assess Nick Scali's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nick Scali has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Nick Scali Limited (ASX:NCK) Looks Like A Quality Company

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Nick Scali has a return on equity of 49% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

With 10% Earnings Growth, Did Nick Scali Limited (ASX:NCK) Outperform The Industry?

Below, I will assess Nick Scali Limited's (ASX:NCK) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Did NCK's recent earnings growth beat the long-term trend and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 24%, indicating the rate at which NCK is growing has slowed down

Simply Wall St -

What Do You Get For Owning Nick Scali Limited (ASX:NCK)?

and want a simplistic look at the return on Nick Scali Limited (ASX:NCK) stock. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Nick Scali, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Nick Scali Limited (ASX:NCK): Are Analysts Bullish?

In June 2018, Nick Scali Limited (ASX:NCK) released its most recent earnings announcement, whicha

Simply Wall St -

Nick Scali Limited (ASX:NCK): Exploring Free Cash Flows

Today we will examine Nick Scali’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Nick Scali’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Nick Scali’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

What Does Nick Scali Limited's (ASX:NCK) Ownership Structure Look Like?

Today, I will be analyzing Nick Scali Limited’s (ASX:NCK) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity.

Simply Wall St -

What You Must Know About Nick Scali Limited's (ASX:NCK) Financial Strength

Nick Scali Limited (ASX:NCK) is a small-cap stock with a market capitalization of AU$481.14m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

What Should Investors Know About Nick Scali Limited's (ASX:NCK) Profit Margin?

Nick Scali Limited's (ASX:NCK) … growth of 8.63% annualised … but it's critical to take a step back

Simply Wall St -

Is Nick Scali Limited (ASX:NCK) A Retail Leader?

is a retail company operating in an industry. … impacted by the digital transformation for all retail channels, and the challenging economic environment … In particular, physical store retailers faced the inevitable challenge of building up an online presence in order to enhance their omnichannel capabilities

Simply Wall St -

Should You Be Concerned About Nick Scali Limited's (ASX:NCK) Earnings Growth?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Investors may find my commentary, albeit very high-level and brief, on Nick Scali Limited (ASX:NCK) useful as an attempt to give more color around how Nick Scali is currently performing. … Did NCK beat its long-term earnings growth trend and its industry.

Simply Wall St -

Company Info

Description

Nick Scali Limited, together with its subsidiaries, engages in sourcing and retailing household furniture and related accessories in Australia and New Zealand. It offers lounges, dining tables and chairs, armchairs, buffets/cabinets, TV units, coffee tables, consoles, rugs, mirrors, and pendants and lamps. The company offers its products through 55 Nick Scali Furniture stores, as well as online. Nick Scali Limited is headquartered in North Ryde, Australia.

Details
Name: Nick Scali Limited
NCK
Exchange: ASX
Founded:
A$492,480,000
81,000,000
Website: http://www.nickscali.com.au
Address: Nick Scali Limited
Triniti II,
Level 7,
North Ryde,
New South Wales, 2113,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NCK Ordinary Shares Australian Securities Exchange AU AUD 26. May 2004
CHIA NCK Ordinary Shares Chi-X Australia AU AUD 26. May 2004
Number of employees
Current staff
Staff numbers
411
Nick Scali employees.
Industry
Homefurnishing Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 10:30
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/05
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.