Nutanix Inc. Class A Common Stock (NTNX)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Generates $665 million in annual free cash flow (6.5% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Elevated P/E of 50.4x prices in substantial future growth that may not materialize
• Altman Z-Score of 0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Nutanix Inc. Class A Common Stock is a mid-cap technology company valued at $10.3 billion. The business generates $2.7 billion in annual revenue with a 3.8% net margin and $665 million in free cash flow. From a quality standpoint, Nutanix shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.0 warrants caution. On valuation, the stock is commanding a steep 50.4x multiple, with PEG of 0.61 suggests growth is underpriced. Growth dynamics show revenue growing at 10.4% and profit growth of 82.6%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $665 million in annual free cash flow (6.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 50x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer