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Nutanix (NTNX) Stock Analysis

This is a peer-relative look at Nutanix (NTNX): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Nutanix (NTNX)
Profile ItemNTNX
NameNutanix, Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustrySoftware
GICS Sub-IndustryApplication Software
Market Capitalization15.92 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateSeptember 30, 2016
Security TypeCommon Stock

Price Performance

Cumulative Growth

NTNX
GSPC
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Nutanix (NTNX) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Nutanix (NTNX) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Nutanix (NTNX) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
Total Return (1Y)-13.40%-3.00%
Total Return (3Y, Annualized)17.34%8.28%
Total Return (5Y, Annualized)11.02%-7.91%

Risk Profile

Drawdown History

NTNX
GSPC
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Nutanix (NTNX) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Nutanix (NTNX) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
Volatility (1Y, Annualized)47.42%61.69%
Beta (5Y)0.741.06
Max Drawdown (5Y)-61.54%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NTNX is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
Sharpe Ratio (1Y)-0.37-0.13
Sortino Ratio (1Y)-0.50-0.19

Profitability

ROE (TTM)

Nutanix (NTNX) posts ROE of 37,460.21%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

NTNX

Software & Services industry group

37,460.21%

Group distribution
NTNX
37,460.21%
Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
Largest peers
NTNX
37,460.21%
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
SAP
18.18%
PANW
1.74%
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Where Nutanix (NTNX) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Nutanix (NTNX) keeps 52.81% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

NTNX

Software & Services industry group

52.81%

Group distribution
NTNX
52.81%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Largest peers
NTNX
52.81%
PLTR
50.34%
MSFT
41.17%
ORCL
26.36%
SAP
20.41%
IBM
15.99%
PANW
2.67%
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Where Nutanix (NTNX) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Nutanix (NTNX) turns 12.89% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

NTNX

Software & Services industry group

12.89%

Group distribution
Max
46.89%
Q3
17.64%
NTNX
12.89%
Median
8.73%
Q1
-2.13%
Min
-30.45%
Largest peers
MSFT
49.76%
PLTR
46.89%
ORCL
35.63%
SAP
29.50%
IBM
16.97%
NTNX
12.89%
PANW
5.40%
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Where Nutanix (NTNX) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
ROE (TTM)37,460.21%6.59%
ROA (TTM)4.51%2.45%
Net Margin (TTM)52.81%4.63%
Operating Margin (TTM)12.89%8.73%
Gross Margin (TTM)86.93%70.07%

Growth

Revenue Growth

Nutanix (NTNX) grew revenue 12.44%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Nutanix (NTNX): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

Nutanix (NTNX) grew earnings per share 695.38%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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Nutanix (NTNX): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
Revenue Growth (YoY)12.44%14.22%
Revenue Growth (3Y CAGR)15.27%13.52%
EPS Growth (YoY)695.38%7.85%
EPS Growth (3Y CAGR)--18.19%

Financial Strength

Current Ratio (MRQ)

Nutanix (NTNX) has current ratio of 1.80, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

NTNX

Software & Services industry group

1.80

Group distribution
Max
5.11
Q3
2.77
NTNX
1.80
Median
1.67
Q1
1.01
Min
0.03
Largest peers
PLTR
7.10
NTNX
1.80
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
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Where Nutanix (NTNX) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Nutanix (NTNX) has debt-to-equity ratio of 2.17, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

NTNX

Software & Services industry group

2.17

Group distribution
Max
2.52
NTNX
2.17
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
Largest peers
ORCL
2.52
NTNX
2.17
IBM
1.85
MSFT
0.28
SAP
0.23
PANW
0.09
PLTR
0.02
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Where Nutanix (NTNX) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
Current Ratio (MRQ)1.801.67
Debt / Equity (MRQ)2.170.40
Net Debt / EBITDA-2.260.17

Dividends

Dividend Yield (TTM)

Nutanix (NTNX) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

NTNX

Software & Services industry group

0.00%

Group distribution
NTNX
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.73%
ORCL
1.74%
SAP
1.03%
MSFT
0.69%
NTNX
0.00%
PLTR
0.00%
PANW
0.00%
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Where Nutanix (NTNX) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Nutanix (NTNX) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

NTNX

Software & Services industry group

0.00%

Group distribution
NTNX
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
57.51%
SAP
36.45%
ORCL
31.35%
MSFT
19.00%
NTNX
0.00%
PLTR
0.00%
PANW
0.00%
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Where Nutanix (NTNX) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Nutanix (NTNX) trades at P/E ratio of 11.29, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

NTNX

Software & Services industry group

11.29

Group distribution
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
NTNX
11.29
Min
6.69
Largest peers
PANW
784.60
PLTR
112.94
SAP
29.07
MSFT
27.69
IBM
20.90
ORCL
18.20
NTNX
11.29
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Where Nutanix (NTNX) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Nutanix (NTNX) trades at 5.58 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

NTNX

Software & Services industry group

5.58

Group distribution
Max
17.91
Q3
8.78
NTNX
5.58
Median
4.25
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
PANW
22.37
MSFT
11.37
SAP
6.84
NTNX
5.58
ORCL
5.04
IBM
3.31
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Where Nutanix (NTNX) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Nutanix (NTNX) trades at 22.50 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

NTNX

Software & Services industry group

22.50

Group distribution
NTNX
22.50
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
Largest peers
SAP
73.25
PLTR
34.41
NTNX
22.50
PANW
9.30
MSFT
8.38
IBM
6.52
ORCL
5.68
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Where Nutanix (NTNX) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Nutanix (NTNX) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NTNXIndustry group median
P/E Ratio (TTM)11.2932.91
P/S Ratio (TTM)5.584.25
P/B Ratio (MRQ)22.504.30
Free Cash Flow Yield (TTM)4.57%3.98%