- The market seems somewhat oblivious of Nutanix's double-digit growth and ability to lower operating expenses.
- In order to understand the reason for this, I first dive into the competitive position, which is a strong one.
- Next, the use of GAAP accounting standards which make possible peer comparison reveals that despite high gross margins, the company still has work to do on the operating profitability front.
- There has sure been a slight improvement, but this has to be sustained in fiscal 2022, especially in view of the high debt level.
- With an adequate cash position but still bearing high valuations despite the downside, Nutanix does not offer any compelling investment opportunity at this moment.
For further details see:
Nutanix: Should Definitely Be On Your Watchlist As It Improves On Profitability