Provides a hyperconverged infrastructure (HCI) platform. Integrates compute, storage, and virtualization resources. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 16% a year over the last 4 years. Red columns mark years that ended in a loss.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
Clearly below the class average.
Sales are growing strongly for its sector.
The stock has been running stronger than the market lately.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades 21% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 53% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 16% a year on average.
There is $2.4B in the vault; even if every debt were paid off, $842.7M would remain.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 33/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 43/100.
On our five-subject report card, NTNX sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: NTNX is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.