Fact based stock research
Nuix (ASX:NXL)
AU0000119307
How to read the 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.
Nuix stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), Nuix (Application Software, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of Nuix are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives), and are riskily financed (Safety Rank of 32, which means above-average debt burdens) but show above-average growth (Growth Rank of 78). ...read more
RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on Nuix's financial characteristics. As the company Nuix shows low value with an Obermatt Value Rank of 39 (61% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 78% of comparable companies (Obermatt Growth Rank is 78). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 32 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Nuix, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Australia |
| Industry | Application Software |
| Index | ASX 300 |
| Size class | Small |
25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Nuix
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 63 |
|
54 |
|
30 |
|
39 |
|
| GROWTH | ||||||||
| GROWTH | 26 |
|
14 |
|
62 |
|
78 |
|
| SAFETY | ||||||||
| SAFETY | 75 |
|
47 |
|
39 |
|
32 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
73 |
|
47 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
46 |
|
45 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 62 (better than 62% compared with investment alternatives), Nuix (Application Software, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of Nuix are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives), and are riskily financed (Safety Rank of 32, which means above-average debt burdens) but show above-average growth (Growth Rank of 78). ...read more
RECOMMENDATION: A Combined Rank of 62, is a buy recommendation based on Nuix's financial characteristics. As the company Nuix shows low value with an Obermatt Value Rank of 39 (61% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 78% of comparable companies (Obermatt Growth Rank is 78). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 32 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Nuix, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 63 |
|
54 |
|
30 |
|
39 |
|
| GROWTH | ||||||||
| GROWTH | 26 |
|
14 |
|
62 |
|
78 |
|
| SAFETY | ||||||||
| SAFETY | 75 |
|
47 |
|
39 |
|
32 |
|
| COMBINED | ||||||||
| COMBINED | 54 |
|
23 |
|
47 |
|
62 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), Nuix shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Nuix. Price-to-Sales (P/S) is 59, which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value concerning Nuix's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 68% of alternatives (32% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 25, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on Nuix's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Nuix may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 60 |
|
67 |
|
59 |
|
59 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 67 |
|
67 |
|
8 |
|
25 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 82 |
|
74 |
|
67 |
|
68 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 63 |
|
54 |
|
30 |
|
39 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 78 (better than 78% compared with alternatives) for 2024, Nuix 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 half of the indicators below and half above average for Nuix. Profit Growth has a rank of 92, which means that currently professionals expect the company to grow its profits more than 92% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 90 (above 90% of alternative investments). But Sales Growth has a below the median rank of 39, which means that, currently, professionals expect the company to grow less than 61% of its competitors, and Capital Growth also has a lower rank of 47. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 78, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Nuix. 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, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 18 |
|
41 |
|
19 |
|
39 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
25 |
|
43 |
|
92 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
60 |
|
59 |
|
47 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 1 |
|
1 |
|
98 |
|
90 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 26 |
|
14 |
|
62 |
|
78 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 32 (better than 32% compared with alternatives), the company Nuix 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 Nuix 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 Nuix and the other two below average. Leverage is at a rank of 63 meaning the company has a below-average debt-to-equity ratio. It has less debt than 63% of its competitors.Refinancing is at a rank of 28, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 72% of its competitors. Liquidity is at a rank of 25, meaning that the company generates less profit to service its debt than 75% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 32 (worse than 68% compared with alternatives), Nuix 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 Nuix are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Nuix 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 | 76 |
|
58 |
|
67 |
|
63 |
|
| REFINANCING | ||||||||
| REFINANCING | 54 |
|
62 |
|
30 |
|
28 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 69 |
|
15 |
|
25 |
|
25 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 75 |
|
47 |
|
39 |
|
32 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
81 |
|
78 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
71 |
|
52 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
17 |
|
19 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
73 |
|
47 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Nuix from April 25, 2024.
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