Uncovering Dividend Opportunities with NASDAQ:NTAP.

Our stock screening tool has identified NETAPP INC (NASDAQ:NTAP) as a strong dividend contender with robust fundamentals. NASDAQ:NTAP exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Evaluating Dividend: NASDAQ:NTAP

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NASDAQ:NTAP has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.93, NTAP pays a better dividend. On top of this NTAP pays more dividend than 88.24% of the companies listed in the same industry.
• On average, the dividend of NTAP grows each year by 19.98%, which is quite nice.
• NTAP has been paying a dividend for at least 10 years, so it has a reliable track record.
• NTAP has not decreased their dividend for at least 10 years, which is a reliable track record.
• NTAP pays out 35.40% of its income as dividend. This is a sustainable payout ratio.

Assessing Health for NASDAQ:NTAP

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NTAP scores a 5 out of 10:

• The Debt to FCF ratio of NTAP is 2.23, which is a good value as it means it would take NTAP, 2.23 years of fcf income to pay off all of its debts.
• NTAP's Debt to FCF ratio of 2.23 is fine compared to the rest of the industry. NTAP outperforms 79.41% of its industry peers.
• Although NTAP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

What does the Profitability looks like for NASDAQ:NTAP

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NTAP, the assigned 9 is a significant indicator of profitability:

• NTAP has a Return On Assets of 13.04%. This is amongst the best in the industry. NTAP outperforms 88.24% of its industry peers.
• NTAP has a Return On Equity of 138.49%. This is amongst the best in the industry. NTAP outperforms 97.06% of its industry peers.
• NTAP has a Return On Invested Capital of 15.53%. This is in the better half of the industry: NTAP outperforms 79.41% of its industry peers.
• The last Return On Invested Capital (15.53%) for NTAP is above the 3 year average (15.40%), which is a sign of increasing profitability.
• NTAP's Profit Margin of 19.49% is amongst the best of the industry. NTAP outperforms 94.12% of its industry peers.
• NTAP's Profit Margin has improved in the last couple of years.
• NTAP has a better Operating Margin (17.62%) than 91.18% of its industry peers.
• In the last couple of years the Operating Margin of NTAP has grown nicely.
• The Gross Margin of NTAP (67.06%) is better than 88.24% of its industry peers.

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Check the latest full fundamental report of NTAP for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.