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
| Profile Item | NTNX |
|---|---|
| Name | Nutanix, Inc. Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | Software |
| GICS Sub-Industry | Application Software |
| Market Capitalization | 15.92 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | September 30, 2016 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: NTNX | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: NTNX | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 47.42% | 61.69% |
| Beta (5Y) | 0.74 | 1.06 |
| Max Drawdown (5Y) | -61.54% | -76.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: NTNX | Industry 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%
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%
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%
Profitability Metrics
| Metric | Current stock: NTNX | Industry 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.
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.
Growth Metrics
| Metric | Current stock: NTNX | Industry 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
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
Financial Strength Metrics
| Metric | Current stock: NTNX | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.80 | 1.67 |
| Debt / Equity (MRQ) | 2.17 | 0.40 |
| Net Debt / EBITDA | -2.26 | 0.17 |
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%
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%
Dividend Metrics
| Metric | Current stock: NTNX | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: NTNX | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 11.29 | 32.91 |
| P/S Ratio (TTM) | 5.58 | 4.25 |
| P/B Ratio (MRQ) | 22.50 | 4.30 |
| Free Cash Flow Yield (TTM) | 4.57% | 3.98% |