nCino Inc. Common Stock (NCNO)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at nCino as a potential Graham-style turnaround, not a proven compounder. The business sells software to financial institutions, a market where switching costs can matter, but the provided numbers do not yet show a wide moat. Revenue rose from $476.5M in FY2024 to $540.7M in FY2025 to $594.8M in FY2026. More importantly, the company moved from a net loss of $37.9M in FY2025 to net income of $5.2M in FY2026. In fiscal Q2 2027, the quarter ended 2026-07-31, it earned $5.1M on $161.0M of revenue, a thin 3.16% margin. Free cash flow is positive at $132.2M trailing twelve months, a 6.3% FCF yield on the $2.1B market cap. Debt-to-equity is moderate at 0.36, and beta is 0.69. But the quality metrics are mixed: ROE is 3.85%, ROCE is 1.99%, Piotroski is 5/9, and Altman Z is 1.78. At the 2026-10-13 close of $19.71, FairStock's P/E is 63.58, P/B is 2.23, EV/EBITDA is 25.29, and PEG is 0.48. The Graham Number is $7.85, implying a negative margin of safety of 151.08%. So the price already discounts a lot of future improvement. I like the cash generation and the return to profit, but I need much better returns on capital and a wider margin of safety before calling this a classic value opportunity. The Lynch category of TURNAROUND fits: it returned to profit after a loss within the last three years, but turnarounds are fragile.

In plain English: nCino sells software that helps banks and financial companies open accounts and bring on customers. The company has started making small profits after losing money, and it generates cash, but profit margins are thin and revenue growth is modest. At $19.71 per share, the price looks high compared with its earnings and accounting value, so it does not look inexpensive based on those numbers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer