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Nick Scali Limited (AU:NCK)
ASX:NCK
Australian Market
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Nick Scali Limited (NCK) AI Stock Analysis

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AU:NCK

Nick Scali Limited

(Sydney:NCK)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
AU$27.00
▲(7.10% Upside)
Nick Scali Limited shows strong financial performance with robust revenue growth and operational efficiency. However, the high debt-to-equity ratio and potential overvaluation pose risks. The technical indicators suggest a strong upward trend, but the overbought RSI may indicate a potential pullback.

Nick Scali Limited (NCK) vs. iShares MSCI Australia ETF (EWA)

Nick Scali Limited Business Overview & Revenue Model

Company DescriptionNick Scali Limited (NCK) is an Australian furniture retailer that specializes in the design, manufacture, and retail of high-quality furniture and home decor products. Founded in 1962, the company operates in the home furnishings sector, offering a wide range of products including sofas, dining tables, bedroom furniture, and accessories. Nick Scali has established a strong presence in the Australian and New Zealand markets, focusing on providing stylish and contemporary furniture solutions for customers looking to enhance their living spaces.
How the Company Makes MoneyNick Scali generates revenue primarily through the sale of its furniture and home decor products, which are sold through its retail stores and online platform. The company operates a network of showrooms across Australia and New Zealand, where customers can experience its product range firsthand. In addition to direct sales, the company often engages in promotional campaigns and offers financing options to customers, which can drive higher sales volumes. Seasonal sales events and partnerships with designers and suppliers also contribute to its revenue streams. Furthermore, Nick Scali benefits from strong brand recognition and customer loyalty, which helps maintain consistent sales and profitability.

Nick Scali Limited Financial Statement Overview

Summary
Nick Scali Limited shows strong revenue growth and operational efficiency with solid profitability margins. However, the high debt-to-equity ratio and fluctuations in cash flow growth present potential risks. The company should focus on maintaining its profitability while managing its leverage to ensure long-term financial stability.
Income Statement
75
Positive
Nick Scali Limited has demonstrated strong revenue growth over the years, with a significant increase of 53.9% in the latest year. The gross profit margin remains robust, consistently above 60%, indicating effective cost management. However, the net profit margin has decreased from previous years, reflecting potential challenges in maintaining profitability. Despite this, the company maintains a healthy EBIT and EBITDA margin, showcasing operational efficiency.
Balance Sheet
65
Positive
The balance sheet shows a high debt-to-equity ratio, which has improved slightly over the years but remains a concern for financial stability. The return on equity is strong, indicating effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.
Cash Flow
70
Positive
Nick Scali Limited has shown positive free cash flow growth, with a notable increase of 27.7% in the latest year. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, fluctuations in free cash flow growth in previous years highlight potential volatility in cash flow management.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue495.28M495.28M468.19M507.72M440.96M373.04M
Gross Profit174.45M314.62M306.80M322.41M268.98M236.75M
EBITDA157.49M157.49M176.95M199.52M158.78M159.04M
Net Income57.68M57.68M80.61M101.08M74.92M84.24M
Balance Sheet
Total Assets705.81M705.81M704.88M607.64M616.39M489.25M
Cash, Cash Equivalents and Short-Term Investments100.99M100.99M111.33M89.25M74.62M106.89M
Total Debt316.14M316.14M320.37M318.17M329.60M226.98M
Total Liabilities439.13M439.13M447.10M427.73M475.47M375.22M
Stockholders Equity266.68M266.68M257.78M179.91M140.93M114.03M
Cash Flow
Free Cash Flow97.68M100.92M102.72M121.03M102.25M124.26M
Operating Cash Flow111.26M115.49M131.18M133.92M121.23M139.90M
Investing Cash Flow15.43M15.43M-64.91M-12.89M-121.50M-15.62M
Financing Cash Flow-108.79M-113.02M-74.19M-66.40M-72.00M-80.43M

Nick Scali Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.21
Price Trends
50DMA
23.23
Positive
100DMA
21.24
Positive
200DMA
19.02
Positive
Market Momentum
MACD
0.56
Negative
RSI
71.52
Negative
STOCH
89.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NCK, the sentiment is Positive. The current price of 25.21 is above the 20-day moving average (MA) of 22.98, above the 50-day MA of 23.23, and above the 200-day MA of 19.02, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 71.52 is Negative, neither overbought nor oversold. The STOCH value of 89.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NCK.

Nick Scali Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$60.37M9.2617.58%6.18%-13.36%14.09%
AU$56.04M12.8012.71%7.78%8.39%3.21%
AU$1.89B32.8021.99%2.50%5.79%-31.70%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$2.85B249.268.81%20.66%543.24%
€393.69M15.4711.70%5.17%3.99%-18.35%
AU$676.56M22.8516.86%2.86%1.89%-3.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NCK
Nick Scali Limited
25.16
11.65
86.23%
AU:TPW
Temple & Webster Group Ltd
23.59
12.51
112.91%
AU:ADH
Adairs Ltd.
1.99
-0.44
-18.21%
AU:DSK
Dusk Group Ltd.
0.90
-0.15
-14.29%
AU:SHM
Shriro Holdings Ltd.
0.78
0.05
6.85%
AU:BLX
Beacon Lighting Group Ltd
2.80
-0.12
-4.11%

Nick Scali Limited Corporate Events

Nick Scali Limited Announces Director Departure
Oct 29, 2025

Nick Scali Limited has announced the cessation of John Weir Ingram as a director, effective October 29, 2025. This change in the board may impact the company’s strategic direction, as Ingram held a significant interest in the company with 206,387 fully paid ordinary shares through Netwealth Investments Limited.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$24.40 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited’s 2025 AGM Resolutions Passed with Strong Support
Oct 29, 2025

Nick Scali Limited announced that all resolutions proposed at its 2025 Annual General Meeting were passed by a poll, indicating strong shareholder support. The successful resolutions, including the re-election and election of directors, reflect the company’s stable governance and strategic direction, which is likely to have a positive impact on its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$24.40 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Reports Strong FY25 Performance and Strategic Board Changes
Oct 29, 2025

Nick Scali Limited reported a strong financial performance for the fiscal year 2025, achieving an underlying profit of $62 million. The company successfully completed an equity raise to fund its UK acquisition, resulting in net proceeds of $58.6 million. The appointment of Niran Peiris to the Board and the transition of Anthony Scali to Executive Chair are expected to guide the company’s next growth phase. In ANZ, sales orders increased by 3%, though revenue slightly declined by 1.4% due to rising shipping costs and other expenses. The UK operations, impacted by store refurbishments and rebranding, generated $41.8 million in revenue.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$24.40 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Announces Leadership Transition
Oct 23, 2025

Nick Scali Limited announced the retirement of its Chair, John Ingram, who has been pivotal in the company’s growth since joining the board before its IPO in 2004. Anthony Scali will take over as Executive Chair, with William Koeck appointed as Deputy Chair and Lead Independent Director, signaling a strategic transition aimed at driving future growth and enhancing shareholder value.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$24.40 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Announces 2025 Annual General Meeting Agenda
Sep 26, 2025

Nick Scali Limited has announced its Annual General Meeting (AGM) scheduled for October 29, 2025, where key agenda items include the consideration of financial reports and the election of directors. The AGM will address the adoption of the Remuneration Report and the re-election of William Koeck as a Non-Executive Director, alongside the election of Niran Peiris as a new Director. These decisions are significant for the company’s governance and strategic direction, impacting stakeholders and aligning with corporate regulations.

The most recent analyst rating on (AU:NCK) stock is a Hold with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Sets Date for 2025 AGM and Director Nominations
Sep 5, 2025

Nick Scali Limited has announced that its 2025 Annual General Meeting will take place on October 29. The company has also set deadlines for director nominations, with recommendations by directors due by October 8 and other nominations by September 16. This announcement outlines important governance timelines, potentially impacting the company’s leadership structure and strategic direction.

The most recent analyst rating on (AU:NCK) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Appoints New Director
Sep 2, 2025

Nick Scali Limited has announced the appointment of Niran Peiris as a director, effective from September 2, 2025. This update, filed under the ASX listing rule 3.19A.1, indicates that Peiris currently holds no securities or interests in the company. The appointment is a strategic move that could influence the company’s governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (AU:NCK) stock is a Hold with a A$24.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Strengthens Corporate Governance Framework
Aug 7, 2025

Nick Scali Limited’s Board of Directors emphasizes strong corporate governance, adhering to the ASX Corporate Governance Principles. The Board is responsible for strategic oversight, risk management, and ensuring compliance with regulatory requirements, while day-to-day operations are managed by the CEO and senior executives. This governance approach aims to deliver value to shareholders and manage climate-related risks and opportunities effectively.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Declares AUD 0.33 Dividend for Shareholders
Aug 7, 2025

Nick Scali Limited has announced a dividend distribution of AUD 0.33 per share for its ordinary fully paid shares, covering the six-month period ending June 30, 2025. This announcement reflects the company’s financial health and commitment to returning value to shareholders, with the payment scheduled for October 28, 2025, following the record date on October 2, 2025.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Reports Strong Second Half Growth Amidst UK Expansion Challenges
Aug 7, 2025

Nick Scali Limited reported a strong performance in the second half of FY25, with a 7.3% growth in written sales orders in Australia and New Zealand, contributing to an overall 3% growth for the year. Despite a decline in net profit due to restructuring costs and a freight forwarder’s business failure, the company maintained a robust gross profit margin of 65%. In the UK, the company is progressing with its expansion, achieving a significant improvement in gross profit margins following the refurbishment and rebranding of 12 stores. However, the UK operations reported a net loss due to disruptions from store closures and clearance of old inventory.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Limited Reports Mixed FY25 Results Amidst Expansion Efforts
Aug 7, 2025

Nick Scali Limited reported a mixed financial performance for FY25, with the ANZ region showing a 2.8% year-over-year increase in written sales orders and a total revenue of $454 million. The company achieved a group underlying profit after tax of $62 million, supported by a strong cash position and a final dividend of 33 cents per share. However, the UK operations faced challenges, with a revenue of $42 million and an underlying loss after tax of $11.2 million, despite improvements in gross profit margins and the refurbishment of 12 stores.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Nick Scali Reports Revenue Growth Amid Profit Decline
Aug 7, 2025

Nick Scali Limited reported a 5.8% increase in revenue to $495.3 million for the year ended June 30, 2025, compared to the previous year. However, the company’s profit after tax decreased by 28.4% to $57.7 million, attributed to restructuring costs and the failure of a freight forwarder. Despite the profit decline, the company declared a fully franked final dividend of 33 cents per share, indicating a commitment to returning value to shareholders.

The most recent analyst rating on (AU:NCK) stock is a Buy with a A$21.00 price target. To see the full list of analyst forecasts on Nick Scali Limited stock, see the AU:NCK Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025