Nutanix, Inc. (NASDAQ: NTNX)

Sector: Technology Industry: Software - Infrastructure CIK: 0001618732
Market Cap 11.01 Bn
P/B -16.47
P/E 49.94
P/S 4.21
ROIC (Qtr) 23.03
Div Yield % 0.00
Rev 1y % (Qtr) 13.47
Total Debt (Qtr) 1.48 Bn
Debt/Equity (Qtr) -2.21
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About

Nutanix, Inc. (NTNX) is a leading enterprise cloud platform provider operating in the technology industry. The company offers a comprehensive suite of software solutions and cloud services, designed to power its customers' enterprise infrastructure. Since its inception in 2009, Nutanix has been a pioneer in the hyperconverged infrastructure (HCI) category, combining compute, storage, and networking into a single on-premises product. Nutanix's main business activities revolve around providing a comprehensive cloud platform that delivers a consistent...

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Investment thesis

Bull case

  • Strong operating cash flow of 856.53M provides robust 0.58x coverage of total debt 1.48B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 780.42M provide 32.39x coverage of short-term debt 24.09M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 772.76M exceeds capital expenditure of 83.77M by 9.22x, indicating strong organic growth funding capability.
  • Operating cash flow of 856.53M provides solid 0.61x coverage of current liabilities 1.40B, showing strong operational health.
  • Retained earnings of (4.87B) represent substantial 7.29x of equity (668.63M), indicating strong internal capital generation.

Bear case

  • Operating cash flow of 856.53M barely covers its investment activities of (998.04M), with a coverage ratio of -0.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (998.04M) provide weak support for R&D spending of 750.35M, which is -1.33x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 856.53M provides insufficient coverage of deferred revenue obligations of 2.17B, which is 0.39x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 856.53M shows concerning coverage of stock compensation expenses of 340.60M, with a 2.51 ratio indicating potential earnings quality issues.
  • Operating earnings of 240.40M show weak coverage of depreciation charges of 103M, with a 2.33 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 2,948.93 Bn 24.73 9.65 57.61 Bn
2 ORCL Oracle Corp 734.55 Bn 67.24 19.76 124.39 Bn
3 PLTR Palantir Technologies Inc. 313.28 Bn 192.78 70.00 0.23 Bn
4 PANW Palo Alto Networks Inc 109.38 Bn 97.90 11.45 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 102.48 Bn -326.20 22.45 0.82 Bn
6 SNPS Synopsys Inc 69.14 Bn 51.90 9.80 14.29 Bn
7 NET Cloudflare, Inc. 66.52 Bn -645.60 33.04 3.50 Bn
8 FTNT Fortinet, Inc. 62.73 Bn 33.48 9.57 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.53 2.10
EV to Cash from Ops. EV/CFO 13.69 3.92
EV to Debt EV to Debt 7.92 -2.43
EV to EBIT EV/EBIT 48.78 11.57
EV to EBITDA EV/EBITDA 39.40 18.19
EV to Free Cash Flow [EV/FCF] EV/FCF 15.18 19.98
EV to Market Cap EV to Market Cap 1.06 1.27
EV to Revenue EV/Rev 4.48 29.29
Price to Book Value [P/B] P/B -16.47 4.97
Price to Earnings [P/E] P/E 49.94 -12.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.21
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.67
Interest Coverage Interest Coverage 0.00 -16.04
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -16.25 -403.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 8.91 223.80
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 379.17 585.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 106.37 5.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 549.23 27.96
EBT Growth (1y) % EBT 1y % (Qtr) 549.23 20.61
EPS Growth (1y) % EPS 1y % (Qtr) 341.18 144.77
FCF Growth (1y) % FCF 1y % (Qtr) 25.21 50.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 19.65 45.98
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.79 0.65
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.56 1.23
Current Ratio Curr Ratio (Qtr) 1.89 2.63
Debt to Equity Ratio Debt/Equity (Qtr) -2.21 0.73
Interest Cover Ratio Interest Cover Ratio 0.00 -16.04
Times Interest Earned Times Interest Earned 0.00 -16.04
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.10 -549.97
EBIT Margin % EBIT Margin % (Qtr) 9.18 -240.33
EBT Margin % EBT Margin % (Qtr) 9.18 -608.68
Gross Margin % Gross Margin % (Qtr) 87.00 51.14
Net Profit Margin % Net Margin % (Qtr) 8.40 -611.28