Exploring NASDAQ:NTAP's dividend characteristics.

Last update: Nov 8, 2023

Our stock screener has singled out NETAPP INC (NASDAQ:NTAP) as a promising choice for dividend investors. NASDAQ:NTAP not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Understanding NASDAQ:NTAP's Dividend Score

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:NTAP has been assigned a 7 for dividend:

NTAP's Dividend Yield is rather good when compared to the industry average which is at 2.99. NTAP pays more dividend than 87.88% of the companies in the same industry.
On average, the dividend of NTAP grows each year by 19.98%, which is quite nice.
NTAP has paid a dividend for at least 10 years, which is a reliable track record.
NTAP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
35.40% of the earnings are spent on dividend by NTAP. This is a low number and sustainable payout ratio.

Health Examination for NASDAQ:NTAP

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NTAP has received 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.
The Debt to FCF ratio of NTAP (2.23) is better than 78.79% of its industry peers.
Even though the debt/equity ratio score it not favorable for NTAP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:NTAP scores a 9 out of 10:

NTAP has a Return On Assets of 13.04%. This is amongst the best in the industry. NTAP outperforms 87.88% of its industry peers.
NTAP has a better Return On Equity (138.49%) than 96.97% of its industry peers.
NTAP's Return On Invested Capital of 15.53% is fine compared to the rest of the industry. NTAP outperforms 78.79% of its industry peers.
The 3 year average ROIC (15.40%) for NTAP is below the current ROIC(15.53%), indicating increased profibility in the last year.
NTAP has a Profit Margin of 19.49%. This is amongst the best in the industry. NTAP outperforms 93.94% of its industry peers.
In the last couple of years the Profit Margin of NTAP has grown nicely.
Looking at the Operating Margin, with a value of 17.62%, NTAP belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Operating Margin of NTAP has grown nicely.
NTAP has a better Gross Margin (67.06%) than 87.88% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of NTAP

Keep in mind

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.