Latest news with #NickScaliLimited
Business Insider
05-05-2025
- Business
- Business Insider
Citi Remains a Buy on Nick Scali Limited (NCK)
In a report released today, Sam Teeger from Citi maintained a Buy rating on Nick Scali Limited (NCK – Research Report), with a price target of A$20.64. The company's shares closed last Friday at A$18.11. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Teeger covers the Consumer Cyclical sector, focusing on stocks such as Collins Foods , ARB Corporation , and Breville Group . According to TipRanks, Teeger has an average return of 2.8% and a 43.18% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Nick Scali Limited with a A$18.64 average price target. Based on Nick Scali Limited's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of A$251.07 million and a net profit of A$30.04 million. In comparison, last year the company earned a revenue of A$226.63 million and had a net profit of A$43.01 million
Yahoo
12-03-2025
- Business
- Yahoo
3 ASX Dividend Stocks With Up To 7.7% Yield
In the midst of a challenging period for the Australian market, with the ASX200 closing down 1.3% at 7,786 points amid US tariffs on Aussie steel and aluminium, investors are increasingly turning their attention to dividend stocks as a potential source of stability and income. In such volatile conditions, selecting dividend stocks with attractive yields can be an effective strategy to cushion against market fluctuations while still generating returns. Name Dividend Yield Dividend Rating Sugar Terminals (NSX:SUG) 7.74% ★★★★★★ Premier Investments (ASX:PMV) 6.57% ★★★★★★ IPH (ASX:IPH) 8.27% ★★★★★☆ Accent Group (ASX:AX1) 7.22% ★★★★★☆ Super Retail Group (ASX:SUL) 9.18% ★★★★★☆ Lindsay Australia (ASX:LAU) 7.05% ★★★★★☆ Nick Scali (ASX:NCK) 3.90% ★★★★★☆ MFF Capital Investments (ASX:MFF) 3.76% ★★★★★☆ Lycopodium (ASX:LYL) 7.66% ★★★★★☆ Fiducian Group (ASX:FID) 4.49% ★★★★★☆ Click here to see the full list of 35 stocks from our Top ASX Dividend Stocks screener. We're going to check out a few of the best picks from our screener tool. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Nick Scali Limited, with a market cap of A$1.32 billion, is involved in sourcing and retailing household furniture and accessories across Australia, the United Kingdom, and New Zealand. Operations: Nick Scali Limited generates revenue of A$492.63 million from its furniture retailing operations. Dividend Yield: 3.9% Nick Scali's recent earnings report for the half-year ending December 31, 2024, showed sales of A$251.07 million and net income of A$30.04 million, a decline from the previous year's figures. The company declared a fully franked interim dividend of A$0.30 per share, down from A$0.35 last year, with payout ratios indicating coverage by both earnings (78.2%) and cash flows (63.7%). Despite lower dividends compared to top-tier Australian payers, Nick Scali maintains stable and reliable dividend payments over the past decade. Take a closer look at Nick Scali's potential here in our dividend report. Our comprehensive valuation report raises the possibility that Nick Scali is priced higher than what may be justified by its financials. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Steadfast Group Limited operates as a general insurance brokerage service provider across Australasia, Asia, and Europe, with a market cap of A$6.13 billion. Operations: Steadfast Group Limited's revenue primarily comes from its Insurance Intermediary segment, which generated A$1.63 billion, complemented by A$120.20 million from Premium Funding. Dividend Yield: 3.1% Steadfast Group's interim dividend of A$0.078 per share, fully franked, reflects its commitment to returning value to shareholders. With a cash payout ratio of 40.6%, the dividend is well covered by cash flows, though earnings coverage is tighter at 85.8%. Despite a history of volatility and unreliability in dividends, recent growth in earnings and revenue suggests potential stability. However, its yield remains modest compared to top-tier Australian dividend payers. Navigate through the intricacies of Steadfast Group with our comprehensive dividend report here. Our valuation report here indicates Steadfast Group may be overvalued. Simply Wall St Dividend Rating: ★★★★★★ Overview: Sugar Terminals Limited offers storage and handling solutions for bulk sugar and other commodities in Australia, with a market cap of A$381.60 million. Operations: Sugar Terminals Limited generates revenue primarily from the sugar industry, amounting to A$115.38 million. Dividend Yield: 7.7% Sugar Terminals offers a compelling dividend profile, trading at 41.1% below its estimated fair value. With a yield of 7.74%, it ranks among the top 25% of Australian dividend payers. Over the past decade, dividends have been stable and growing, supported by an earnings payout ratio of 89.8% and cash flow coverage at 81.8%. Despite limited share liquidity, consistent profit growth enhances its appeal for income-focused investors seeking high-yield opportunities in Australia. Click here and access our complete dividend analysis report to understand the dynamics of Sugar Terminals. Our comprehensive valuation report raises the possibility that Sugar Terminals is priced lower than what may be justified by its financials. Discover the full array of 35 Top ASX Dividend Stocks right here. Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:NCK ASX:SDF and NSX:SUG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
01-03-2025
- Business
- Yahoo
Is There An Opportunity With Nick Scali Limited's (ASX:NCK) 40% Undervaluation?
Using the 2 Stage Free Cash Flow to Equity, Nick Scali fair value estimate is AU$28.10 Nick Scali is estimated to be 40% undervalued based on current share price of AU$16.77 Analyst price target for NCK is AU$18.11 which is 36% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Nick Scali Limited (ASX:NCK) by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Check out our latest analysis for Nick Scali We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$60.1m AU$101.3m AU$116.8m AU$126.9m AU$134.8m AU$141.7m AU$148.0m AU$153.8m AU$159.3m AU$164.6m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Analyst x2 Est @ 6.19% Est @ 5.16% Est @ 4.43% Est @ 3.92% Est @ 3.57% Est @ 3.32% Present Value (A$, Millions) Discounted @ 7.8% AU$55.8 AU$87.1 AU$93.1 AU$93.9 AU$92.4 AU$90.1 AU$87.3 AU$84.1 AU$80.8 AU$77.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$842m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 7.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$165m× (1 + 2.7%) ÷ (7.8%– 2.7%) = AU$3.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$3.3b÷ ( 1 + 7.8%)10= AU$1.6b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$2.4b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of AU$16.8, the company appears quite good value at a 40% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Nick Scali as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.8%, which is based on a levered beta of 1.177. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Specialty Retail market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Trading below our estimate of fair value by more than 20%. Threat Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Nick Scali, we've put together three pertinent items you should assess: Financial Health: Does NCK have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does NCK's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
Nick Scali's (ASX:NCK) Anemic Earnings Might Be Worse Than You Think
The market rallied behind Nick Scali Limited's (ASX:NCK) stock, leading do a rise in the share price after its recent weak earnings report. We think that shareholders might be missing some concerning factors that our analysis found. See our latest analysis for Nick Scali One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. In fact, Nick Scali increased the number of shares on issue by 5.6% over the last twelve months by issuing new shares. As a result, its net income is now split between a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. Check out Nick Scali's historical EPS growth by clicking on this link. Nick Scali's net profit dropped by 12% per year over the last three years. Even looking at the last year, profit was still down 19%. Sadly, earnings per share fell further, down a full 22% in that time. And so, you can see quite clearly that dilution is influencing shareholder earnings. In the long term, if Nick Scali's earnings per share can increase, then the share price should too. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Over the last year Nick Scali issued new shares and so, there's a noteworthy divergence between EPS and net income growth. Because of this, we think that it may be that Nick Scali's statutory profits are better than its underlying earnings power. In further bad news, its earnings per share decreased in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Ultimately, this article has formed an opinion based on historical data. However, it can also be great to think about what analysts are forecasting for the future. Luckily, you can check out what analysts are forecasting by clicking here. This note has only looked at a single factor that sheds light on the nature of Nick Scali's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
3 ASX Dividend Stocks Yielding Up To 7.6% For Your Portfolio
As the Australian market prepares for a positive open, with ASX 200 futures indicating a rise despite global trade tensions, investors are keeping an eye on dividend stocks as a potential source of steady income. In such fluctuating conditions, selecting stocks with strong dividend yields can be an effective strategy to enhance portfolio stability and generate reliable returns. Name Dividend Yield Dividend Rating Fortescue (ASX:FMG) 9.94% ★★★★★☆ Super Retail Group (ASX:SUL) 7.42% ★★★★★☆ Fiducian Group (ASX:FID) 4.39% ★★★★★☆ MFF Capital Investments (ASX:MFF) 3.33% ★★★★★☆ Premier Investments (ASX:PMV) 5.74% ★★★★★☆ Nick Scali (ASX:NCK) 3.81% ★★★★★☆ National Storage REIT (ASX:NSR) 4.91% ★★★★★☆ Santos (ASX:STO) 6.94% ★★★★☆☆ Ricegrowers (ASX:SGLLV) 5.14% ★★★★☆☆ Australian United Investment (ASX:AUI) 3.54% ★★★★☆☆ Click here to see the full list of 32 stocks from our Top ASX Dividend Stocks screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Nick Scali Limited, with a market cap of A$1.48 billion, is involved in sourcing and retailing household furniture and related accessories across Australia, the United Kingdom, and New Zealand. Operations: Nick Scali Limited generates its revenue through the sourcing and retailing of household furniture and related accessories in Australia, the United Kingdom, and New Zealand. Dividend Yield: 3.8% Nick Scali's dividend profile is characterized by stable and growing payments over the past decade, supported by a sustainable payout ratio of 68.9% from earnings and 55% from cash flows. However, recent financial results show a decline in net income to A$30.04 million for the half year ended December 31, 2024, leading to a reduced interim dividend of A$0.30 per share compared to A$0.35 last year. Despite this decrease, dividends remain reliable with minimal volatility historically but offer a yield lower than top-tier Australian dividend stocks at 3.81%. Click to explore a detailed breakdown of our findings in Nick Scali's dividend report. In light of our recent valuation report, it seems possible that Nick Scali is trading beyond its estimated value. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Steadfast Group Limited operates as a general insurance brokerage service provider across Australasia, Asia, and Europe, with a market cap of A$6.27 billion. Operations: Steadfast Group Limited generates revenue from its Insurance Intermediary segment at A$1.55 billion and Premium Funding at A$113 million. Dividend Yield: 3% Steadfast Group's dividend payments are covered by earnings with a payout ratio of 80.7% and a cash payout ratio of 65.6%, indicating sustainability despite past volatility. The stock trades at a discount to its estimated fair value, but its dividend yield of 3.01% is below the top quartile in Australia. While dividends have grown over the last decade, insider selling raises concerns about future stability amidst executive changes focused on business solutions leadership. Click here to discover the nuances of Steadfast Group with our detailed analytical dividend report. The analysis detailed in our Steadfast Group valuation report hints at an inflated share price compared to its estimated value. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Shaver Shop Group Limited is a retailer of personal care and grooming products operating in Australia and New Zealand, with a market cap of A$174.90 million. Operations: The company's revenue primarily comes from retail store sales of specialist personal grooming products, totaling A$219.37 million. Dividend Yield: 7.6% Shaver Shop Group's dividends are covered by earnings with a payout ratio of 87% and a cash payout ratio of 48.1%, suggesting sustainability despite an unstable track record over the past eight years. Trading significantly below its fair value estimate, it offers an attractive dividend yield of 7.64%, placing it in the top quartile in Australia. However, recent insider selling and volatility in dividend payments may concern investors seeking reliability. Navigate through the intricacies of Shaver Shop Group with our comprehensive dividend report here. The analysis detailed in our Shaver Shop Group valuation report hints at an deflated share price compared to its estimated value. Unlock more gems! Our Top ASX Dividend Stocks screener has unearthed 29 more companies for you to here to unveil our expertly curated list of 32 Top ASX Dividend Stocks. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:NCK ASX:SDF and ASX:SSG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
