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Nutanix, Inc. (NASDAQ:NTNX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Nutanix, Inc. provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. With the latest financial year loss of US$125m and a trailing-twelve-month loss of US$55m, the US$19b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Nutanix's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Nutanix is bordering on breakeven, according to the 16 American Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$74m in 2025. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 92% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Nutanix's growth isn’t the focus of this broad overview, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
See our latest analysis for Nutanix
Before we wrap up, there’s one issue worth mentioning. Nutanix currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
There are too many aspects of Nutanix to cover in one brief article, but the key fundamentals for the company can all be found in one place – Nutanix's company page on Simply Wall St. We've also put together a list of important aspects you should further research:
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Valuation: What is Nutanix worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Nutanix is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Nutanix’s board and the CEO’s background.
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Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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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.