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NCK

Nick ScaliASX:NCK Stock Report

Market Cap

AU$1.2b

7D

-7.4%

1Y

66.6%

Updated

29 Nov, 2021

Data

Company Financials +
NCK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance6/6
Financial Health5/6
Dividends4/6

NCK Stock Overview

Nick Scali Limited, together with its subsidiaries, engages in sourcing and retailing of household furniture and related accessories primarily in Australia and New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for Nick Scali
Historical stock prices
Current Share PriceAU$14.71
52 Week HighAU$16.30
52 Week LowAU$8.62
Beta1.32
1 Month Change1.66%
3 Month Change19.01%
1 Year Change66.59%
3 Year Change177.55%
5 Year Change141.15%
Change since IPO1,040.31%

Recent News & Updates

Nov 28
These 4 Measures Indicate That Nick Scali (ASX:NCK) Is Using Debt Safely

These 4 Measures Indicate That Nick Scali (ASX:NCK) Is Using Debt Safely

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Nov 02
Nick Scali (ASX:NCK) Is Reinvesting To Multiply In Value

Nick Scali (ASX:NCK) Is Reinvesting To Multiply In Value

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...

Sep 23
Nick Scali (ASX:NCK) Is Paying Out A Larger Dividend Than Last Year

Nick Scali (ASX:NCK) Is Paying Out A Larger Dividend Than Last Year

Nick Scali Limited ( ASX:NCK ) has announced that it will be increasing its dividend on the 25th of October to AU$0.25...

Shareholder Returns

NCKAU Specialty RetailAU Market
7D-7.4%-6.3%-1.6%
1Y66.6%26.3%11.8%

Return vs Industry: NCK exceeded the Australian Specialty Retail industry which returned 26.3% over the past year.

Return vs Market: NCK exceeded the Australian Market which returned 11.8% over the past year.

Price Volatility

Is NCK's price volatile compared to industry and market?
NCK volatility
NCK Average Weekly Movement5.3%
Specialty Retail Industry Average Movement5.1%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.8%
10% least volatile stocks in AU Market3.7%

Stable Share Price: NCK is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NCK's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1962541Tony Scalihttps://www.nickscali.com.au

Nick Scali Limited, together with its subsidiaries, engages in sourcing and retailing of household furniture and related accessories primarily in Australia and New Zealand. It offers lounges, dining tables and chairs, armchairs, buffets/cabinets, TV units, coffee tables, consoles, bedroom furniture products, mattresses and bases, rugs, mirrors, and pendants and lamps. The company provides its products through a network of 61 stores, as well as online.

Nick Scali Fundamentals Summary

How do Nick Scali's earnings and revenue compare to its market cap?
NCK fundamental statistics
Market CapAU$1.19b
Earnings (TTM)AU$84.24m
Revenue (TTM)AU$373.04m

14.1x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NCK income statement (TTM)
RevenueAU$373.04m
Cost of RevenueAU$136.29m
Gross ProfitAU$236.76m
ExpensesAU$152.51m
EarningsAU$84.24m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.04
Gross Margin63.47%
Net Profit Margin22.58%
Debt/Equity Ratio29.5%

How did NCK perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

62%

Payout Ratio

Valuation

Is Nick Scali undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NCK (A$14.71) is trading below our estimate of fair value (A$27.92)

Significantly Below Fair Value: NCK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NCK is poor value based on its PE Ratio (14.1x) compared to the Australian Specialty Retail industry average (10.6x).

PE vs Market: NCK is good value based on its PE Ratio (14.1x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: NCK is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: NCK is overvalued based on its PB Ratio (10.4x) compared to the AU Specialty Retail industry average (3.6x).


Future Growth

How is Nick Scali forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NCK's forecast earnings growth (4% per year) is above the savings rate (1.9%).

Earnings vs Market: NCK's earnings (4% per year) are forecast to grow slower than the Australian market (11.6% per year).

High Growth Earnings: NCK's earnings are forecast to grow, but not significantly.

Revenue vs Market: NCK's revenue (11% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: NCK's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NCK's Return on Equity is forecast to be very high in 3 years time (51.9%).


Past Performance

How has Nick Scali performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NCK has high quality earnings.

Growing Profit Margin: NCK's current net profit margins (22.6%) are higher than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: NCK's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: NCK's earnings growth over the past year (100.2%) exceeds its 5-year average (16% per year).

Earnings vs Industry: NCK earnings growth over the past year (100.2%) exceeded the Specialty Retail industry 91.8%.


Return on Equity

High ROE: NCK's Return on Equity (73.9%) is considered outstanding.


Financial Health

How is Nick Scali's financial position?


Financial Position Analysis

Short Term Liabilities: NCK's short term assets (A$159.3M) exceed its short term liabilities (A$136.0M).

Long Term Liabilities: NCK's short term assets (A$159.3M) do not cover its long term liabilities (A$186.8M).


Debt to Equity History and Analysis

Debt Level: NCK has more cash than its total debt.

Reducing Debt: NCK's debt to equity ratio has reduced from 36.6% to 29.5% over the past 5 years.

Debt Coverage: NCK's debt is well covered by operating cash flow (417.2%).

Interest Coverage: NCK's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet


Dividend

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

4.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NCK's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: NCK's dividend (4.42%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


Stability and Growth of Payments

Stable Dividend: NCK's dividend payments have been volatile in the past 10 years.

Growing Dividend: NCK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.5%), NCK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NCK's dividends in 3 years are forecast to be covered by earnings (77% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Tony Scali

17.5yrs

Tenure

AU$1,586,852

Compensation

Mr. Anthony J. Scali, also known as Tony, B.Com., serves as Managing Director of Nick Scali Limited since May 24, 2004 and also has been its Executive Director of Nick Scali & Co. Pty Ltd. and Nick Scali L...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD1.13M) is about average for companies of similar size in the Australian market ($USD965.91K).

Compensation vs Earnings: Tony's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NCK's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: NCK's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nick Scali Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Nick Scali Limited
  • Ticker: NCK
  • Exchange: ASX
  • Founded: 1962
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: AU$1.192b
  • Shares outstanding: 81.00m
  • Website: https://www.nickscali.com.au

Number of Employees


Location

  • Nick Scali Limited
  • Triniti 2
  • Level 7
  • North Ryde
  • New South Wales
  • 2113
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/29 15:47
End of Day Share Price2021/11/29 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.