Last Updated: 18 Sep 2024
Executive Summary
nCino Inc. (NCNO) is a cloud-based software provider for financial institutions. The company's software helps banks and credit unions automate and streamline their operations, including lending, account management, and customer service. nCino has been growing rapidly in recent years, and its revenue is expected to continue to grow in the future. The company is profitable, and its stock is trading at a reasonable valuation.
Company Overview
nCino was founded in 2012 and is headquartered in Wilmington, North Carolina. The company's software is used by over 1,200 financial institutions in the United States and internationally. nCino's software is designed to be easy to use and integrate with other systems, and it can be deployed quickly and cost-effectively.
Fundamental Analysis
nCino's financial performance has been strong in recent years. The company's revenue has grown from $50.6 million in 2018 to $151.2 million in 2022. nCino is also profitable, with net income of $24.8 million in 2022. The company's gross margin is 47.2%, and its operating margin is 6.2%.
nCino's financial ratios are also healthy. The company's debt-to-equity ratio is 0.3, and its current ratio is 1.5. nCino is also generating strong cash flow from operations, with $45.1 million in cash flow from operations in 2022.
Technical Analysis
nCino's stock price has been trending higher in recent years. The stock price reached a 52-week high of $37.48 in January 2023. The stock price has since pulled back, but it is still trading above its 50-day and 200-day moving averages.
The relative strength index (RSI) is a technical indicator that measures the strength of a stock's price momentum. The RSI is currently at 55.4, which indicates that the stock is in a neutral position.
Short Term Outlook
nCino's stock price is expected to continue to trade in a range in the near term. The stock price could rise if the company reports strong financial results or if there is positive news about the company's industry. However, the stock price could also fall if the company reports weak financial results or if there is negative news about the company's industry.
Long Term Outlook
nCino's long-term outlook is positive. The company's software is in high demand, and the company is expected to continue to grow its revenue and profitability in the future. nCino is also well-positioned to benefit from the increasing adoption of cloud-based software by financial institutions.
Analyst Recommendations
The majority of analysts have a "buy" rating on nCino's stock. The average analyst price target is $37.86, which represents a potential upside of 27.4% from the current stock price.
