Nick Scali Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = A$1.23b | Revenue (TTM) = A$513.47m
Market Cap = A$1.23b | Estimated Revenue = A$537.83m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = A$1.47b | Revenue (TTM) = A$513.47m
Enterprise Value = A$1.47b | Forward Revenue = A$537.83m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Nick Scali Stock Analysis
Analyst Opinions
15 Analysts have issued a Nick Scali forecast:
Analyst Opinions
15 Analysts have issued a Nick Scali forecast:
Nick Scali Events
Past Events
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AUG
6
Q4 2026 Earnings Call
about 2 months ago
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FEB
12
Q2 2026 Earnings Call
7 months ago
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StocksGuide Free
Nick Scali — Q4 2026 Earnings Call
1. Management Discussion
Thank you for standing by, and welcome to the Nick Scali Limited FY '26 Results. [Operator Instructions] I would now like to hand the conference over to Mr. Anthony Scali, Managing Director. Please go ahead.
Good morning, everyone. Welcome to the Nick Scali results presentation. The FY '26 summary is -- group net profit after tax was $75.7 million, up 22% on FY '25 underlying NPAT and up 31% on statutory. Revenue was $516.7 million, up 4.3%. Gross margin was 65.6%, up 210 basis points. Cash on hand, $106.6 million, final dividend, $0.39 per share fully franked.
For the ANZ Group, written orders are up 2.7%, reflecting a challenging second half. Net profit after tax was $80.5 million, up 10% on FY '25 underlying and 13% up on the statutory NPAT. Revenue in the ANZ was $476.7 million, up 5% on prior year.
Turning to the U.K. Written orders for FY '26 were $45 million, with second half orders of $23 million, up 50%. Clearly, the year before, many stores were closed for refurbishment and rebranding. Nick Scali branded stores like-for-like were up 19% in the second half. Revenue was $40 million, $1.8 million less than last year with the interrupted trading in first half with store closures due to the rebranding program. Gross profit margin for FY '26 was 60.3% compared to 47.1% in FY '25. 16 stores refurbished and rebranded Nick Scali by December 2025. Net loss after tax of $4.8 million, with second half statutory profit of $800,000.
As mentioned, on Page 3 of our results presentation, group written sales orders were up 4.7%. ANZ was 2.7%. And we can -- as pointing out in the second half, written sales orders were down 3.6%. This is compared to a prior year second half where like-for-like growth was 7.3%. The U.K. written orders, up 31%. A lot of this, of course, is based on stores being closed, but pleasing to see that the brand stores like-for-like was up 19% in the second half.
Revenue, as mentioned, was 4.3% up. ANZ was up 5%. U.K. was down 4% due to the store closures. And then we can note that written sales orders exceeded sales revenue in the U.K. by $5 million. For the group financial performance, the ANZ margin was 66% versus 65% in FY '25.
The operating expenses increased by $5 million compared to the prior year. This is mainly in the first half, and that was attributable to employment and bonuses and the additional advertising. Second half was flat, including start-up costs of $600,000 for four new stores. Just to note, the impact of AASB16 was $1.7 million after tax compared to the previous year.
The U.K. gross margin has continued to improve, which is 60.3%, [ FY '26 ]. Other income included interest earned lower than the estimated final acquisition payment and early surrender of leases on stores, which included trading losses during the negotiation stage of the stores.
I'll turn now -- hand it over to Keith.
Thanks, Anthony. So on Page -- Slide 5, the group generated operating cash flow of $117.9 million, up from $89.6 million last year. In the U.K., operating cash flows reduced significantly to $2.1 million compared to $10.2 million last year, reflecting improved sale activity, improved margins and lower refurbishment spend as that major refurbishment program completed.
The group invested $23 million in property and other capital investments during the year, including the Campbelltown property acquisition, land for the South Australian distribution center and showroom upgrades across both the ANZ and the U.K. We will also complete the purchase of the Richmond showroom property in August, continuing the strategy of selectively investing in strategic freehold locations.
Following $61.6 million of dividend payments and the capital investments during the year, the group closed with cash of $106.6 million, up from $101 million in the prior year. With debt unchanged, net cash closed at $34.9 million.
We now move to Slide 6 and the balance sheet. The group's balance sheet remains very strong, with net assets increasing to $279.8 million from $266 million a year ago. Inventory on hand reduced to $41.6 million from $44.6 million, reflecting the continued discipline around inventory management. Property book increased to $131 million, primarily due to the Campbelltown acquisition and the land purchase for the South Australian distribution center.
Borrowings remained unchanged at $71.7 million, comprising the $43.7 million of property debt secured at a less than 22% LVR, together with $28 million of corporate acquisition debt. Overall, the group finished with increased cash, higher net assets and conservative level of debt while continuing to invest in property and providing flexibility as we enter '27.
Thanks, Keith. Okay. Just on the U.K. summary, as mentioned, the gross margin was 60.3%. And to note, the second half margin actually improved to 61.2%. We -- up to recently, we've been -- in terms of distribution, we've been using a third party. We've now leased our own warehouse, a brand-new building that allows us a lot of capacity for growth.
In terms of our leadership in the U.K., the focus remains on retail teams in stores and looking for new store opportunities. In terms of product, the best sellers in the U.K. are in line with best sellers in Australia, that we -- introduction of a new product is first tested in Australia, which has been an advantage and being successful to date, that strategy.
We expect now to open one new store in October, and we have a number of other locations under negotiations. We can see from the store network, whilst we did close two stores, one was in Brisbane Airport, which is the landlords now -- it will no longer be large-format retail. So we had to exit that, and another one was in Toowoomba.
But in replace of that, we've opened three new Plush showrooms and a new Nick Scali store in Ballarat and two Nick Scali stores that were due to open in the prior year, in FY '26, opened in July in Bendigo and Bunbury. The U.K. Lincoln store closed in October and Nottingham in April as these were shared concessionary stores with another retailer, and they did not suit our long-term strategy. As mentioned, the new store in the U.K. is expected to open in October, and a number of store locations under review.
We're looking at our property, which is growing and obviously, the portfolio of property, which are most of these retail stores as part of our long-term strategy. The historical cost is $145 million. Current book value, which is, obviously, acquisition costs less depreciation, is $130 million. But based on independent valuation, that property value sits at $208 million.
As mentioned, we -- during the last year, we bought the Campbelltown property. We've also bought land and we're currently building a new distribution center in South Australia. And we've exchanged contracts on a new -- on a Richmond property that will be refurbished and won't be operated for approximately 18 months as we're waiting for the current tenant lease to end.
The outlook. For the first 5 weeks of trading, written sales orders were flat when compared to the same period the previous year, cycling off high single-digit growth. The group opened four new stores during FY '26 and a further two in July, which are expected to contribute positively to FY '27 earnings. A further four stores are expected to be opened during FY '27, supporting the group's continued growth strategy.
In the U.K., the positive momentum in the U.K. continued. We've written sales orders for the first 5 weeks, up 35% on the prior period, but taking into account a number of stores were closed for refurb last year. The group expects to have a new store in October and other stores.
I think that completes our presentation, and we're happy now to take questions.
[Operator Instructions] Your first question comes from Naveed Fazal Bawa with Jefferies.
2. Question Answer
Gross margin was obviously very solid in the U.K. and ANZ. Just wanted to understand how we should think about it going forward, given there's been a bit of movement in FX and freight in the second half and in the context that you might have some hedging arrangements in place that might roll off? And maybe on the U.K., how much higher can that margin go, given it's a very solid outcome in the second half?
To answer your question, I think the U.K. margin is probably where it -- will sit at where it is in somewhere between 60% and 61%. When we look at ANZ, yes, we're rolling off hedges that were at lower rates, lower dollar rates. And we've got a bit of the benefit coming through now, but that's getting offset by, at the moment, freight. It is up because of the oil issue, with an increase in the bunker, the BAF. So my view -- the Australian ANZ margin was very high. I'm not committing that, that's always going to be at that level, but somewhere in the range of 65%, 66% is where I think it can remain.
And maybe just on like-for-like written order sales trends. It looks like from the second half into FY '27, you all have opened new stores in the second half. And in July, it looks like it might have improved slightly from down mid-single digit in Feb to June to maybe down low single digits in the first 5 weeks. Does that sound about right? And maybe if you can give some color on how bad the macro is post...
Yes. Well, the macro is not good at all. No, this is one of the worst macro for furniture for sure. We've got house prices going down. So there's a negative wealth effect. We've had interest rate increases. We've got inflation. We've got cost of living. It's -- and transaction -- housing transactions have been slow for 6 months. So it's a tough macro, very tough. And it's been a very volatile -- the quarter 4 was volatile, some months up, some months down, but we were off high comps of prior year, in fairness, yes.
So the first 5 weeks doesn't mean it's going to be that for sure. It's just very difficult to predict. You've got a bad consumer, I think, at the moment. So hopefully, my hope, obviously, that the -- if the war stops and oil comes back down and maybe inflation is controlled, but it would certainly be helpful if interest rates are dropping.
Your next question comes from James Wilson with Macquarie.
Just a couple from me. So just to clarify there on Naveed's question around written sales orders on a like-for-like basis. We're right to still be thinking that over the trading update, when adjusted for those new stores, we were sort of modestly down negative single-digit declines. Is that right?
Well, very marginal, very marginal. Yes, very -- it might be almost negligible, to be honest with you, on a like-for-like because we actually have two stores that we closed, and then new stores that were opened.
Okay. So broadly flat then even on a like-for-like basis, maybe modestly.
Yes. Yes, but that's only the first 5 weeks. So we've got a long way to go.
And it looks like in the second half, in terms of advertising spend, it was sort of roughly flat after a bit of a bump in the first half. Obviously, given the weaker consumer in Australia, can you talk to us maybe about how you're thinking in terms of the marketing and advertising piece over FY '27? Will there be any change in how you promote or...
No, I think we're sticking to the strategy, which is -- we're not doing anything different. The main thing is we're trying to have our dollar go further because it's a tough market for the media. So we're just trying to get better value, is how we're looking at it.
Right. And just one final one from me. I mean we would have just had the U.K. bank holiday weekend over these first 5 weeks. Can you talk to us a little bit about how...
The bank holidays in August. There was one in Wales and Ireland, I think. Scotland, sorry, it's Scotland. Scotland and Wales had the bank holiday, not the U.K.
Okay. Sorry, not England then.
Yes, the bank holiday is at the end of August in the U.K.
Okay. All right. Okay. Can you just talk to us, though, a little bit about how sort of promotional activity amongst the competitors was in the U.K. then?
Yes. Look, the U.K. has got tougher because as you know, the DFS Group, which is more than 25% of the market, reported negative 4% written sales order growth. So it's a tougher environment. Traffic is down, but our conversion has improved a lot. So U.K. is not easy at the moment as well on the macro.
Your next question comes from Thomas Kierath with Barrenjoey.
I've just got a couple on the U.K. That 35% increase in July, I think you're saying that, that was affected by some closures or some remodeling. Like should we expect 35%, you can do that for the rest of the year? Or is that kind of...
No, no, that's what I'm qualifying. I mean, look at the -- it's better to look at the like-for-like, the stores that were opened in the prior year is a better indication. No, we don't expect that.
Yes. Okay. And I think before you've said AUD 51 million is the kind of breakeven point for the U.K. But I think you did AUD 40 million in the year. And just going like how confident are you getting to that AUD 51 million in '27? Or is it maybe going to be breakeven in '28, not '27?
I think we're lowering the breakeven at the moment. We think it's going to be lower than AUD 51 million. Look, I'm becoming more confident, but -- and the sales teams are definitely better. They're converting better. It's going to depend a bit about the macro there. I think product is doing well, and we keep introducing proven winners in Australia that seem to be working, and the range is just improving as well. I'm feeling confident in our strategy and what we're offering the customer. The thing holding us back is not enough stores and not enough brand awareness.
And sorry, last one. I think you got two Fabb stores, like Fabb branded stores still operating there. Like what's the kind of plan for them? I assume they're not going to get converted, but will they close? I'm just trying to work out the modeling, I suppose, behind that.
Yes, yes. Look, one of them -- okay, one of them is in a place Canterbury, we inherited the store, and it's in an industrial area. It's not in the retail park. We're just running the lease out there because it's not very high rent, but it hardly makes any sales. So we're always going to quit that. The other one is a smaller store that we're using as a clearance outlet, and we'll continue to do that, clearance outlet in Australia.
Your next question comes from Sam Teeger with Citi.
Sorry to dwell on it, but there's a couple of questions I'm getting from clients on it. Just wanting to confirm the earlier questions around like-for-like in the Australian trading update. You mentioned it was broadly flat because you closed two stores, but the only closures I can see in the pack are in the U.K., Lincoln and Nottingham. Which closures were you referring to?
In Australia, we've got one around Brisbane Airport.
Okay. Great. And then is it reasonable to conclude that the stronger-than-expected final dividend is a function of M&A being less likely over the next 6 months or so? Remember at the February result, the company seemed pretty keen to buy something in Australia, but the drums don't seem to be beating as loud on this topic anymore.
No, the dividend -- no, we've got a big -- we've got a stronger balance sheet than we've ever had and a lot of cash. So that's not going to impact that at all. No relation to M&A. As you can see, even our properties now, that $200 million, and we've got property debt of $43 million. So a lot of capacity in our balance sheet, a lot of capacity.
Are there things you're looking at right now in ANZ?
Are there what?
Are there potential acquisition targets you're looking at right now in ANZ?
We're always looking. We're always looking.
Okay. And then last question. At what point do you expect to see the post-budget deterioration in the housing market really start to show up in the company sales, I guess, given you have to take into account the time it takes for property contracts to settle and then the time it takes for people to move in and furnish their new dwellings?
I think that's happened. I think we've already seen that. I mean that started happening back in February. So I mean, traffic is down. The traffic is down in stores a lot.
Post the federal budget in May, when things really deteriorated.
Yes. Well, it has deteriorated further, yes, I agree. But I don't know. Interest rates might drop sometime later. I don't know. I really don't know at the moment. We [indiscernble] frequently.
Your next question comes from James Ferrier with Canaccord.
First question is on the U.K., so the operating costs were pretty similar in the second half to what they were in the first. Looking forward and maybe excluding new stores, how does the new warehouse impact that line? And how do you see marketing costs ramping up in that line in the year ahead?
Yes. Well, we've moved from a third party to a new warehouse. So we're going to have a larger property cost, but a lower logistics cost. Overall, it will be marginally higher, the cost, maybe, because we've got a warehouse with capacity. So marginally higher, if you like, on the -- so there's a benefit from the third party, the savings there, but then we've got the property cost. So it's a small number, but it's higher overall, that cost.
And marketing, how do you see -- you talked a bit about the macro and the conversion improving from your sales team. So it sort of sounds like you feel like the business is more reliant on more foot traffic coming in the top of the funnel and therefore, how quickly are you going to ramp that marketing expense line through FY '27?
Look, the U.K., it's a big population, advertising on what we traditionally do like on TVs. It's very, very expensive. And we did experiment with it, and the fact is we don't have enough stores to justify a spend that would be meaningful, that would work at the moment. So we -- I mean, we -- not advertising, we're getting good results anyway because we are in retail parks after all, and we're nice there and we're paying a lot of rent to be in a retail park for a good reason. So I don't think -- so we will do promotions from time to time, but not -- very controlled, very controlled.
Yes. Okay. Interesting. Just related to that then, ballpark, what revenue line do you think the U.K. needs to give you the scale and the confidence to spend on marketing equivalent to what a normal business would?
Well, I'd say, you look at the percentage. Yes. We need, at least, to really -- another 10 stores to really -- to be able to promote, as we would like to promote, with a decent schedule, and that costs money, but that's what I think we need.
Okay. And last question from me. Just your earlier comment around the macro in the ANZ market, one of the worst environments. So I get that that's nothing sort of surprising about your description there. But in the context of the Nick Scali business having a really long track record of navigating consumer cycles successfully, I'm interested in what observations you're seeing from a conversion or maybe average transaction value perspective. I get that foot traffic is down as a consequence of that macro, but...
Correct.
What differences you're seeing in conversion and transaction values?
The transaction values are holding. The average is. Conversions are up. They have to be because traffic is down. Traffic can be down, at times, 10% to 15%. So there's a lot and lot of focus on conversion. But look, I've been in the stores talking to the salespeople and what they're seeing is that the people coming are really buyers. But that's -- we're fortunate that we've held the average transaction value because that was my concern. And we just -- our focus is on conversion. But, look, it's a tough environment. It's a really tough environment.
Your next question comes from James Leigh with Goldman Sachs.
Maybe just one on costs in ANZ. It looks to me like they are pretty well managed in the second half. How are you thinking about the award wage increases into next year and kind of what sort of costs -- like how we're managing costs into next year and what sort of kind of rationalization -- like what sort of rationalization we can achieve?
Well, yes, that's challenging. Fortunately, our people, above award, quite a bit above award. So that won't have an impact. But there's -- I think there's wage inflation, just natural, particularly if you want good salespeople. So it's about being more efficient and rostering and managing numbers carefully and having effective people, I think -- but there's not a lot of -- we don't have a lot of fat in our employment. That can be true.
Yes. Maybe to ask it like slightly differently, like against that 4.75%, I appreciate your wages -- your employees aren't on award wages. Like how should we think about that growth rate into next year? Is that a reasonable starting point? Or do you think you can run a bit leaner than that?
Hopefully run leaner than that.
Your next question comes from Chami Ratnapala with Bell Potter Securities.
I think firstly, just on the U.K., within the second half result of profitability, can you give us a sense of if all of the economies of scale are annualized and how sort of the flow through to FY '27 in terms of incremental profitability would look like, given that you've also brought down the bar of breakeven with better expectations there?
Can you repeat that? Could you repeat it? We missed a bit of that. We have a bad connection.
Yes. Just want to understand U.K. profitability. Looking at the second half, do we have quite a bit of economies of scale annualized? And is there anything more to sort of play out against some of those logistics costs going up? Like-for-likes are looking quite good, too. How are you thinking about sort of any guide that you can give on incremental FY '27 profitability for the U.K.?
So look, we're -- overall, we're having to hold costs pretty flat. Maybe we're always trying to -- in certain areas, we think there's potential savings on costs, but small. There's lots of small -- but overall, there's nothing material on the cost side.
Perfect. And then on ANZ, I mean, like-for-like order sales outcomes, we've seen it despite gross margins at a very strong level. Is there any element of probably balancing of those gross margins versus traffic and conversion? Or is it -- would you predominantly put it down to basically the traffic issue at the moment or macro?
You are saying our margins higher?
Yes, margins have been strong, like-for-likes, has -- come in at these levels. Is there any element of balancing gross margins versus sustaining like-for-likes or...
Yes, of course, we watch that carefully. You're right, and that's something we manage all, every day. So look, overall, 66% is a very high number, and I'm not saying that will be sustained, but you could bank on somewhere between 65% and 66%, is what I would -- how I'd answer this.
Great. And I think obviously, quite a few tough conditions ahead already playing out macro stuff, you sort of talked through everything. But maybe bottom up, is there any that you're optimistic on within the business more thinking bottom up?
When you -- can you clarify what you mean bottom up?
Yes. Just for the business versus what's playing out there in the macro setup. Is there any -- where are you most optimistic on?
None. I don't think so.
None at all.
I think maybe rostering practices across the group. Certainly in the U.K.
That's all the time we have for our question-and-answer session. And that does conclude our conference for today. Thank you for participating. You may now disconnect.
Nick Scali — Q4 2026 Earnings Call
Nick Scali — Q2 2026 Earnings Call
1. Management Discussion
Thank you for standing by, and welcome to the Nick Scali Limited First Half '26 Results. [Operator Instructions]
I would now like to turn the conference over to Mr. Anthony Scali, Managing Director. Please go ahead.
Good morning. Welcome to the results presentation for the first half FY '26.
Looking on Page 2 of the summary for the ANZ Group, written sales were up 10.5% versus prior year. Revenue was $251.7 million, up 13% on the prior year. The gross profit margin was 65.9%, up 1.5 basis points on the first half and 0.9% than FY '25. Net profit after tax was $46.6 million, up $10.6 million or 29% on the first half FY '25 underlying, and up $12.5 million or 37% on the first half FY '25 statutory profit.
For the U.K., revenue was $17.6 million, impacted by store closures due to the rebranding program. Written orders for the first half were $21.7 million, with January written orders $6.7 million.
Nick Scali brand stores like-for-like in January are up 32%. Gross profit margin in the first half '26 was 59.2% compared to 45.1% first half FY '25. 16 stores refurbished and rebranded as Nick Scali by December '25. Net loss after tax of $5.6 million as per forecast. For the group, group net profit after tax was $41 million. Cash and bank deposits was $91.7 million as at December and the interim dividend of 39% per share fully franked.
Turning to Page 3, written sales orders and group revenue. As mentioned, the written sales were up 10.5% on the prior year across Australia and New Zealand, with like-for-like written sales orders of 10.1%. The U.K. written sales orders of $21.7 million, that was 12.8% on the prior comparable half. Year-on-year comparatives are not representative of trading due to the numerous store closures for lengthy periods for store refurbishments. The group written sales of total was $251.6 million, 10.7% up.
On the revenue side, ANZ Group revenue was $251.7 million, up 13%. This reflected in the high written sales in May and June FY '25, which is up 16% on the prior year and a strong first quarter FY '26 contributing to the revenue growth. ANZ like-for-like revenue for the first half was positive 12.7%.
For the U.K., the revenue was $17.6 million. That's down 38.5%. This clearly reflects the low written sales over the quarter for FY '25 and first half FY '26, caused by closures of numerous stores for lengthy periods for store refurbishments and rebranding. Group revenue for the half was $269.3 million, up 7%.
Turning to Page 4, group financial performance. As mentioned, the gross profit margin was 65.9% compared to the first half FY '24 of 64.4%. The ANZ underlying operating expenses increased by $5 million compared to the prior year, mainly attributable to employment bonuses and additional marketing in line with sales growth. The U.K. gross margin continues to improve with Nick Scali product in place and the legacy Fabb product now cleared.
First half FY '26 gross margin was 59.2% compared to the first half FY '25 at 45.1%. The U.K. revenue is reported net of interest rate subsidy costs impacting margin. For the first half '26, operating expenses in the U.K. were $10.8 million. In local currency terms, expenses were in line with prior year with savings in employment and property costs offset by additional marketing spend.
I'll now hand over to Kylie Archer, who will deal with the cash flow and balance sheet.
Thank you, Anthony. So looking at the cash flow Slide #5 here. Total group pretax operating cash generated after deducting amounts due on operating leases was $51.5 million for the half compared to $29 million last year, with ANZ contributing $53.4 million.
For the U.K., we see operational funding requirements for the period decrease as the sales orders increase and capital requirements reduce as the refurbishments are completed, with net operating cash flows for the U.K. -- cash outflows for the U.K. of $1.9 million.
Property and capital investments for the group of $17.1 million include 2 property purchases in the period, the first being $3.8 million for land acquired in South Australia to be used for our new distribution center, with construction due to commence this calendar year and the second being $7.9 million for the Nick Scali retail store in Campbelltown. In addition, bid-out costs were incurred for a number of showrooms across Australia and the U.K.
$28.2 million was returned to shareholders in the period by way of payment of the final dividend final FY '25 dividend. And finally, the closing net cash position for the group was $20 million as at end December versus $15.9 million last year.
We move on to the balance sheet on Slide 6. Inventory levels overall remained broadly consistent during the half, as you can see from the table on the right-hand side of the page, with inventory on hand at $42.2 million, slightly down on June '25 levels of $44.6 million. We see an increase in property and net book value from $120 million to $132 million due to the SA land and Campbelltown purchases, as mentioned on the previous slide.
Borrowings remain unchanged in the period at $71.7 million. with $43.7 million relating to property loans secured at less than a 30% loan-to-value ratio. The balance of the borrowings relates to the $28 million corporate debt facility unchanged in the reporting period.
I will now hand back to Anthony.
Thanks, Kylie. So turning to Page 8, U.K. summary. Sales orders continued to improve during the half as more stores were rebranded. The 4 rebrands Nick Scali stores trading like-for-like in January 2025 showed growth of 32%. The margin was 59%. This is net of interest-free subsidy. The margin is expected to improve over the medium term. Distribution progress has been made in restructuring the customer delivery model to reduce margin leakage.
Leadership, further consolidation of U.K. head office roles as Australia and operational processes are adopted in the U.K., driving greater efficiency across the group. Focus remains on retail teams in stores and evaluating and seeking new store opportunities.
Looking at product, the best sellers in the U.K. are now in line with the best sellers in Australia. New product introductions based on Australian performance will be the norm going forward. Pathway to profitability. The breakeven position is $51 million of sales revenue. New stores are critical for our profit growth as is increased brand awareness.
Looking now on Page 9 of the store network. A new Plush showroom was opened in November '25 in Bendigo. A further 5 new stores for FY '26 are being planned to open, which will bring the total to 6 new locations. In the U.K., the Lincoln store was closed at the end of lease as we believe that's not suitable to rebrand to Nick Scali as part of the ongoing optimization of the U.K. store network.
The U.K. refurbishment program is mostly complete with 16 stores converted to the Nick Scali store design, branding and product range. A number of new store locations in the U.K. are under negotiation.
Now turning to Page 10 and the outlook. For ANZ, the written sales for the month of January '26 increased by 3%. Like-for-like written sales increased 3.2%. During the half -- second half, a further 5 stores are planned for opening with additional opportunities currently being reviewed. In the U.K., with store refurbishment now mostly complete, material improvements are being seen in written sales compared to the prior period. Total January written sales were $6.7 million for the 4 like-for-like written sales were up 32% compared to last year. A number of potential new U.K. stores are currently in negotiation.
Well, that now concludes our presentation, and we're happy to take questions.
[Operator Instructions] Your first question comes from Tom Kierath with Barrenjoey.
2. Question Answer
Just the first one on January. I thought it might have been a bit stronger than 3% in ANZ, just given you're lapping negative 8.5%, I think it was. Is there anything like in the promotional timing or the calendar or anything? Or is that just, I guess, a reflection of -- a true reflection of how you're tracking at the moment?
Well, I think the -- what's happening now in November, the month is getting stronger and stronger every year. So we had a very strong November being very close to the Boxing Day sales, but just seems a bit of a shift now because of that. So you're getting quite a lot of, I guess, orders you might have got in January. We did see traffic was down in January by 7% and sales were still up 3%, so conversion did improve. That's one thought. The other thought is maybe interest rates may be having an impact on the consumer. We're not sure yet. I think March and over will tell that story.
Yes. That makes sense. And then just the second one is just on your order bank. So you did obviously more profit than you guided to in December, which is more profit than you guided to at the AGM. What's the shape of the order bank like at the moment? Like based on my math, the order bank reduced by about $22 million in the half. I know you don't actually report that number anymore, but just be good to get some color on the order bank and kind of logistics and just how quickly you're getting product to customers?
Yes. Look, I think our lead times have probably increased by 3 to 4 days. So yes, we're delivering a little bit quicker, but not materially quicker. Yes, we don't call out the order bank because it can create some confusion sometimes. I mean, at the end of the day, we -- our revenue is based on FY '26, it's really about May to March sales orders written gives you the revenue number, if you like.
Is it fair to assume the order bank has reduced in the half?
No.
Our next question is from Garth Francis with MST Marquee.
The gross margin performance was good. It does feel like it's been a fairly promotional environment. Have you had to engage or has that impacted your promotional activity in the market? And then if you could just touch on FX and currency impacts looking and when you expect those benefits to wash through? Should we expect some to come through in this half? Or is that more of an FY '27 story?
Yes. I would say, first, the margin did not impact our promotional activity. On the FX side, yes, obviously, we take forward cover. And that won't -- the benefit of the currency, if there is any, will be it won't be until the first half next year, next financial year. And clearly, being in a competitive environment, not necessarily we will bank the currency. We might pass it on with further promotion.
Terrific. And if I may, one more, just the tax rate that was -- the effective tax rate in the half was up quite a bit. Can you just maybe -- was there anything in there that resulted in that? Were you not allowed to deduct U.K. losses or had something else? Was there another impact that we should be aware of?
No, nothing out of the ordinary.
So is the 30% tax rate going forward more likely or something.
Yes. Traditionally, that has been the rate.
Yes.
Yes.
Your next question comes from James Ferrier with Canaccord Genuity.
Can I ask you, first of all, about the store sales team in the U.K. You've been on a bit of a journey there to improve the quality capability of that team. Where are you at, at this point in time?
Well, looking at the January results, say a lot better at the moment. So yes, I think the leadership -- we've got good leadership in the U.K. and they -- I mean, it's always something that you continually work on better sales teams. It's -- there's never any point you say it's as good as I can get and it's never as bad. So I think we're making good progress in the U.K., and we can see that from the January results.
And would you -- like if you use a benchmark like foot traffic conversion to sales orders, would you say it's now comparable to Australia?
It's improving, yes, not quite yet at Australian level, Nick Scali Australia anyway, but it's improved a lot.
Yes. Yes. Understood. Second thing I want to ask about was marketing spend. Just in your earlier remarks and maybe Kylie's as well, you mentioned that marketing spend in ANZ increased in line with sales. So if my math is right, that would imply that you spend about AUD 0.5 million on marketing in the U.K. Does that sound about right?
It's -- yes, yes, it could be -- yes, maybe marginally more in fact. You're converting Australian dollars, yes.
Yes. That's right. So just based on that, when you look forward now, Anthony, and you sort of see the landscape as it is, sales trends, things like that, what are your plans with marketing spend in the ANZ business through the rest of the year? Do you sort of see it sort of pretty stable? Or do you see an opportunity to lift it up, maybe reinvest some of that stronger gross margin. What are your plans on that marketing spend?
Yes. Look -- it's something we continually manage on a month-to-month basis, to be honest. So depending on the strength and the traffic into stores, we may in certain promotions where we think we've got a strong offer may increase the spend. It's something we manage. But if we do increase, it's managed. We're trying to ensure we don't waste money on advertising. We need to get the result. And we continue to invest -- able to invest more as we open more stores. So that's beneficial for the whole brand.
Yes. And then just lastly, same topic, but for the U.K., how quickly do you see the trajectory for marketing spend as a percentage of sales to move up towards maybe not to 10%, but towards 10%?
Yes. I think -- well, yes, 10% is a lot. I'm not sure we want to get to that. I mean, well, it depends -- the marketing gets more efficient with more stores. And clearly, at the moment, we have quite a bit of waste in our spend in the U.K. because we've only got 16 stores, and they're spread across the U.K. So there's not a lot of opportunity for localized advertising. It's mainly national. And hence, we are aggressively pursuing more stores to open in the short term, so we can then increase the spend in marketing, which increases the brand awareness, which does 2 things, helps the same-store sales improve, we would expect from that and a larger store network.
Your next question comes from Chami Ratnapala with Bell Potter Securities.
Just the first question is on the U.K. like-for-likes, I mean, with those 4 rebranded stores that were trading last year as well, the 32% up figure, what sort of confidence does it give you on, firstly, the breakeven position and sort of where some of these stores still hit revenue per store versus some of the Australian stores?
Yes. Well, yes, it certainly gives us that is -- that's not the January number on the like-for-like stores was a great uplift. The whole January result was very good in the U.K. Clearly, we need to continue that momentum, particularly in this half, which will get us sooner to the breakeven point in the short term.
But look, I'm not so focused in the short term, whether it's a small loss or a small profit is what's really relevant is that we open new stores and continue with the strategy and have a conviction to continue to open stores and improve every aspect of the business is which we are doing. But yes, on the whole, really encouraging result for January.
Perfect. And the second question, you talked a bit about earlier, it came up that pretty intense promo environment here in Australia, but margins have been very solid. Turning to U.K., 59%. I mean, how did that track? And into the rest of the second half, how will that balancing act of margins versus driving sales work as the brand awareness increases?
Yes. Well, look, our -- look, the first thing is, obviously, our buying strength is helping us have prices even on promotion that are very, very competitive and yet be able to deliver that margin. And that's particularly because of our lounge volumes across Australia and now the U.K. So we are very confident that we're going to be more than competitive in our pricing yet maintain this margin.
And as I said earlier, look, we expect in the medium term that margin will improve in the U.K. One thing to also point out with that margin is there's an interest rate subsidy cost that does -- is included as a cost in the margin, which is necessarily not here in Australia.
Your next question comes from Sean Xu with CLSA.
Can you hear me?
Yes. Can hear you, Sean.
Just hoping to do a follow-up question on the order banking within ANZ business. Could you please tell me what's the implied GP margin performance for your order bank compared to the same time last year?
The implied margin on the order bank. Well, it's going to be slightly higher, I guess, given what our margin has been delivering. We don't expect our margin to -- it will be consistent with the first half for the second half is what our expectation is subject to external factors that may potentially impact it like a shipping issue. But at the moment, that's -- the order bank is in line with the first half margin.
Got it. Got it. Can I just do another follow-up? So this is the same question I asked you 6 months ago. I'd love to have an update on this -- because of the U.S. tariff situation, my understanding is the access manufacturing capacity in China from your supplier with their manufacturing plant moving to Vietnam to catering for the U.S. export business. I guess, I just want to hoping to get an update how Nick Scali is positioned to negotiate or renegotiate a more favorable supply term with some of your partners in Asia, please?
Well, that has been occurring already. Yes. I mean the factories, a lot of the production for the U.S. -- well, all the production in the U.S. has moved to Vietnam from many of the China factories. And yes, you've got more capacity in China, but that's been for some time now. So I think yes, we've been getting better value, and we've had good support from the factories, but I don't see any more change now in respect of that.
We have reached the end of our question-and-answer session. I would like to turn the conference back over to Mr. Scali for closing remarks.
Thank you, everyone, for attending the results presentation. And we plan to provide a good result for the first half and look forward to good results for the full year. Thank you.
That does conclude our conference for today.
Nick Scali — Q2 2026 Earnings Call
Financial data from Nick Scali
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Dec '25 |
+/-
%
|
||
| Revenue | 513 513 |
4%
4%
100%
|
|
| - Direct Costs | 179 179 |
0%
0%
35%
|
|
| Gross Profit | 335 335 |
6%
6%
65%
|
|
| - Selling and Administrative Expenses | 163 163 |
7%
7%
32%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 173 173 |
5%
5%
34%
|
|
| - Depreciation and Amortization | 54 54 |
8%
8%
11%
|
|
| EBIT (Operating Income) EBIT | 119 119 |
4%
4%
23%
|
|
| Net Profit | 69 69 |
1%
1%
13%
|
|
In millions AUD.
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Nick Scali Stock News
Company Profile
Nick Scali Ltd. engages in the sourcing and retailing of household furniture and related accessories. The company is headquartered in North Ryde, New South Wales and currently employs 930 full-time employees. The company went IPO on 2004-05-26. The firm is engaged in the sourcing and retailing of household furniture and related accessories. Its sofas and armchairs collection include recliner sofa collections, leather sofa collections, fabric sofa collections, occasional armchairs, and others. Its living room collections include TV and entertainment units, coffee tables, side tables, console and hallway tables, and others. Its dining room collections include dining tables, dining chairs, and buffet tables and sideboards. Its bedroom collections include mattresses, bedframes, bedside tables, and dressers, among others. Its rugs and accessories collections include rugs and mirrors. The firm imports leather and fabric lounges as well as dining room and occasional furniture. The firm has stores located in New South Wales, Queensland, Victoria, Tasmania, South Australia, Western Australia, and others.
StocksGuide Premium
| Head office | Australia |
| CEO | Mr. Scali |
| Employees | 850 |
| Website | www.nickscali.com.au |


