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Nido Education Limited (AU:NDO)
ASX:NDO
Australian Market
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Nido Education Limited (NDO) AI Stock Analysis

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AU:NDO

Nido Education Limited

(Sydney:NDO)

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Neutral 70 (OpenAI - 4o)
Rating:70Neutral
Price Target:
AU$0.50
▼(-23.08% Downside)
Nido Education Limited's stock score is primarily driven by its strong financial performance and attractive valuation. The company's significant revenue growth and improved profitability are positive, but high leverage poses a risk. The stock's technical indicators suggest a bearish trend, which slightly offsets the positive valuation metrics. Overall, the stock presents a mixed outlook with strong income potential but requires careful monitoring of its financial stability.

Nido Education Limited (NDO) vs. iShares MSCI Australia ETF (EWA)

Nido Education Limited Business Overview & Revenue Model

Company DescriptionNido Education Limited owns, operates, and manages long day early childhood education and care centers under the Nido Early School brand name in Australia. The company was incorporated in 2021 and is based in Drummoyne, Australia.
How the Company Makes MoneyNido Education Limited generates revenue through the sale of educational products and services. This includes the development and distribution of curriculum materials, educational software, and learning resources tailored for different educational levels. Key revenue streams include direct sales to schools and educational institutions, subscription-based models for digital learning platforms, and partnerships with educational bodies and organizations. The company may also engage in licensing agreements to expand its offerings and reach a broader audience, thereby increasing its revenue potential.

Nido Education Limited Financial Statement Overview

Summary
Nido Education Limited has demonstrated significant growth and improvement in profitability over the past few years. The income statement reflects strong revenue growth and improved margins, while the balance sheet indicates high leverage, posing potential risks. Cash flow generation has improved, but historical challenges remain a consideration. Overall, the company is on a positive trajectory but should manage its debt levels to ensure long-term financial stability.
Income Statement
78
Positive
Nido Education Limited shows a strong revenue growth trajectory, with a significant increase in total revenue from $57.9M in 2022 to $163.6M in 2024. The gross profit margin is robust at 94.5% in 2024, indicating effective cost management. The net profit margin improved to 8.95% in 2024 from negative in previous years, reflecting a turnaround in profitability. However, the EBIT and EBITDA margins, while positive in 2024, were negative in prior years, suggesting past operational challenges.
Balance Sheet
65
Positive
The company's balance sheet shows a high debt-to-equity ratio of 1.49 in 2024, indicating significant leverage, which could pose financial risk. The equity ratio is 38.2%, suggesting a moderate reliance on equity financing. Return on equity is 11.84% in 2024, demonstrating a decent return for shareholders. However, the high level of debt remains a concern for financial stability.
Cash Flow
72
Positive
Nido Education Limited has shown improvement in cash flow generation, with a substantial increase in free cash flow to $27.3M in 2024. The operating cash flow to net income ratio is 1.94, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 1.86, suggesting efficient capital expenditure management. Despite these strengths, previous years showed negative free cash flow, highlighting past cash flow challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue163.63M93.37M57.94M19.22M
Gross Profit154.59M86.66M57.94M5.19M
EBITDA25.95M-13.58M5.25M4.77M
Net Income14.65M-18.11M-6.78M1.88M
Balance Sheet
Total Assets323.81M323.88M308.90M20.91M
Cash, Cash Equivalents and Short-Term Investments3.51M25.57M23.20M1.34M
Total Debt184.07M189.98M177.50M2.24M
Total Liabilities200.13M214.43M197.10M23.25M
Stockholders Equity123.68M109.45M111.80M-2.34M
Cash Flow
Free Cash Flow27.33M-58.00K-2.33M1.83M
Operating Cash Flow28.50M293.00K0.002.04M
Investing Cash Flow-24.34M-79.67M-2.83M-204.00K
Financing Cash Flow-26.22M102.63M6.30M-1.56M

Nido Education Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.65
Price Trends
50DMA
0.65
Negative
100DMA
0.68
Negative
200DMA
0.71
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
48.00
Neutral
STOCH
29.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NDO, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.65, and below the 200-day MA of 0.71, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.00 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NDO.

Nido Education 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
72
Outperform
32.72M-6.150.00%1.74%-2.81%-503.02%
70
Neutral
AU$147.94M10.7412.24%11.23%26.16%
50
Neutral
28.17M-4.880.00%-14.55%71.13%
49
Neutral
15.91M-12.500.00%1.42%86.97%
48
Neutral
177.39M812.500.00%-1.08%0.00%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NDO
Nido Education Limited
0.65
-0.10
-13.33%
AU:EVO
Evolve Education Group Ltd
0.69
-0.03
-4.17%
AU:AKG
Academies Australasia Group Limited
0.12
-0.02
-14.29%
AU:CLU
Cluey Ltd
0.08
0.04
100.00%
AU:3PL
3P Learning Ltd.
0.65
-0.36
-35.64%
AU:KME
Kip McGrath Education Centres Limited
0.58
0.16
38.10%

Nido Education Limited Corporate Events

Nido Education Announces 2025 Interim Dividend
Aug 28, 2025

Nido Education Limited has announced a 2025 interim dividend of 1.5 cents per ordinary share, fully franked, to be paid on 16 September 2025. This dividend announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial positioning and stakeholder confidence.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Reports 2025 Half-Year Financial Results and Declares Dividend
Aug 27, 2025

Nido Education Limited announced its half-year financial results for 2025, reporting an 8% increase in Service EBITDA to $12.8 million, despite a decline in overall EBITDA and Net Profit After Tax due to increased support office costs and suppressed occupancy in the sector. The company declared a fully franked interim dividend of 1.5 cents per share, emphasizing its commitment to sustainable shareholder returns while navigating cost-of-living pressures and maintaining fee stability for families.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Announces Dividend Distribution
Aug 27, 2025

Nido Education Limited has announced a dividend distribution of AUD 0.015 per share for its shareholders. The dividend relates to the six-month period ending June 30, 2025, with the ex-dividend date set for September 4, 2025, and the payment date on September 16, 2025. Shareholders are required to provide valid direct credit details to receive the payment, or their dividend will be withheld. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Releases 2025 Half-Year Financial Report
Aug 27, 2025

Nido Education Limited has released its Interim Financial Report for the half year ending June 30, 2025, in compliance with ASX Listing Rule 4.2A. Shareholders are invited to join a conference call on August 28, 2025, to discuss the company’s financial and operational results. This announcement, authorized by the Board, reflects Nido’s commitment to transparency and stakeholder engagement.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.00 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Appoints New Director, Strengthening Leadership
Aug 4, 2025

Nido Education Limited has announced the appointment of Adam Nathan Lai as a new director, effective August 1, 2025. Mr. Lai holds significant interests in the company, including unlisted options and ordinary shares, and serves as the Chief Executive Officer. This appointment is expected to strengthen the company’s leadership and potentially impact its strategic direction and market positioning.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Expands with New Childcare Service Acquisition
Jul 31, 2025

Nido Education Limited has completed the acquisition of a childcare service from its incubation pipeline for $2.4 million. This acquisition is part of Nido’s strategy to expand its network through a de-risked incubation model, allowing the company to grow off-balance-sheet and maintain consistent service quality. With a strong pipeline of 16 trading services in incubation and numerous sites under construction or in final legal stages, Nido continues to explore new opportunities monthly, indicating robust growth potential and strategic positioning in the childcare industry.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Appoints CEO Adam Lai as Executive Director
Jul 30, 2025

Nido Education Limited has announced the appointment of Adam Lai as an Executive Director, effective August 1, 2025. Adam, who is also the CEO of Nido, brings extensive experience from his previous role at PwC Australia. His dual role as CEO and Executive Director is expected to strengthen the alignment between the company’s strategic direction and operational execution, enhancing governance and supporting long-term success. This appointment is seen as a move to bolster the company’s growth and impact in the transforming education sector.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education to Announce Half-Year Results and Pauses Buy-Back Program
Jul 30, 2025

Nido Education Limited has announced that it will release its half-year financial and operational results for the period ending June 30, 2025, on August 27, 2025. In light of this upcoming announcement, the company has decided to pause its on-market buy-back program effective immediately. Additionally, shareholders are invited to participate in an investor briefing conference call scheduled for August 28, 2025, to discuss these results. This pause in the buy-back program and the scheduled briefing indicate a strategic focus on transparency and stakeholder engagement as the company prepares to disclose its mid-year performance.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO Stock Forecast page.

Nido Education Limited Updates on Share Buy-Back Program
Jul 28, 2025

Nido Education Limited has announced an update regarding its ongoing share buy-back program. The company reported the repurchase of 29,473 ordinary fully paid securities on the previous day, adding to a total of 987,263 securities bought back before that day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:NDO) stock is a Buy with a A$1.25 price target. To see the full list of analyst forecasts on Nido Education Limited stock, see the AU:NDO 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: Sep 19, 2025