NCINO INC (NCNO) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:NCNO - US63947X1019 - Common Stock

24.37 USD

+0.07 (+0.29%)

Last: 1/26/2026, 3:01:01 PM

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to NCNO. NCNO was compared to 278 industry peers in the Software industry. While NCNO seems to be doing ok healthwise, there are quite some concerns on its profitability. NCNO is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

NCNO had positive earnings in the past year.
NCNO had a positive operating cash flow in the past year.
NCNO had negative earnings in each of the past 5 years.
In multiple years NCNO reported negative operating cash flow during the last 5 years.

1.2 Ratios

NCNO has a Return On Assets (-1.39%) which is in line with its industry peers.
NCNO has a Return On Equity (-2.09%) which is comparable to the rest of the industry.
NCNO has a Return On Invested Capital (0.31%) which is in line with its industry peers.

		Industry Rank	Sector Rank
ROA	-1.39%
ROE	-2.09%
ROIC	0.31%

ROA(3y)-4.42%

ROA(5y)-4.85%

ROE(3y)-5.85%

ROE(5y)-6.34%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

NCNO has a Operating Margin (0.90%) which is in line with its industry peers.
The Gross Margin of NCNO (60.33%) is worse than 62.95% of its industry peers.
In the last couple of years the Gross Margin of NCNO has grown nicely.

		Industry Rank	Sector Rank
OM	0.9%
PM (TTM)	N/A
GM	60.33%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.42%

GM growth 5Y2.3%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

NCNO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NCNO has more shares outstanding
NCNO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NCNO is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.26 indicates that NCNO is not in any danger for bankruptcy at the moment.
NCNO's Altman-Z score of 3.26 is fine compared to the rest of the industry. NCNO outperforms 62.95% of its industry peers.
NCNO has a debt to FCF ratio of 4.27. This is a neutral value as NCNO would need 4.27 years to pay back of all of its debts.
NCNO's Debt to FCF ratio of 4.27 is in line compared to the rest of the industry. NCNO outperforms 59.71% of its industry peers.
NCNO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
NCNO has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	4.27
Altman-Z	3.26

ROIC/WACC0.03

WACC11.07%

2.3 Liquidity

A Current Ratio of 1.01 indicates that NCNO should not have too much problems paying its short term obligations.
The Current ratio of NCNO (1.01) is worse than 73.74% of its industry peers.
NCNO has a Quick Ratio of 1.01. This is a normal value and indicates that NCNO is financially healthy and should not expect problems in meeting its short term obligations.
NCNO has a worse Quick ratio (1.01) than 72.66% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.01
Quick Ratio	1.01

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 8.00% over the past year.
NCNO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.14%.
The Revenue has been growing by 31.37% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)8%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%47.62%

Revenue 1Y (TTM)12.14%

Revenue growth 3Y25.44%

Revenue growth 5Y31.37%

Sales Q2Q%9.63%

3.2 Future

The Earnings Per Share is expected to grow by 24.36% on average over the next years. This is a very strong growth
Based on estimates for the next years, NCNO will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.

EPS Next Y40%

EPS Next 2Y25.95%

EPS Next 3Y24.36%

EPS Next 5YN/A

Revenue Next Year9.78%

Revenue Next 2Y8.82%

Revenue Next 3Y9.18%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 30.09, NCNO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NCNO is valued a bit cheaper than the industry average as 63.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. NCNO is around the same levels.
A Price/Forward Earnings ratio of 23.27 indicates a rather expensive valuation of NCNO.
Based on the Price/Forward Earnings ratio, NCNO is valued a bit cheaper than the industry average as 66.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.98. NCNO is around the same levels.

		Industry Rank	Sector Rank
PE	30.09
Fwd PE	23.27

4.2 Price Multiples

NCNO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NCNO is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	46.8
EV/EBITDA	62.18

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NCNO's earnings are expected to grow with 24.36% in the coming years.