21.66 USD
-0.5 (-2.26%)
21.66 USD
0 (0%)
NLOK gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. Both the profitability and financial health of NLOK have multiple concerns. NLOK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- NLOK had positive earnings in the past year.
- In the past year NLOK had a positive cash flow from operations.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 34.81% | ||
| ROIC | 5.9% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Profit Margin of NLOK has grown nicely.
- NLOK's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.52% | ||
| PM (TTM) | 20.57% | ||
| GM | N/A |
OM growth 3Y33.91%
OM growth 5Y53.81%
PM growth 3Y187.2%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLOK is destroying value.
- The number of shares outstanding for NLOK has been increased compared to 1 year ago.
- The debt/assets ratio for NLOK has been reduced compared to a year ago.
2.2 Solvency
- NLOK has an Altman-Z score of 0.75. This is a bad value and indicates that NLOK is not financially healthy and even has some risk of bankruptcy.
- The Debt to FCF ratio of NLOK is 12.98, which is on the high side as it means it would take NLOK, 12.98 years of fcf income to pay off all of its debts.
- A Debt/Equity ratio of 5.82 is on the high side and indicates that NLOK has dependencies on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.82 | ||
| Debt/FCF | 12.98 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.8
WACC7.39%
2.3 Liquidity
- NLOK has a Current Ratio of 0.57. This is a bad value and indicates that NLOK is not financially healthy enough and could expect problems in meeting its short term obligations.
- NLOK has a Quick Ratio of 0.57. This is a bad value and indicates that NLOK is not financially healthy enough and could expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
- NLOK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.43%, which is quite good.
- NLOK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.02% yearly.
- Looking at the last year, NLOK shows a small growth in Revenue. The Revenue has grown by 6.84% in the last year.
- Measured over the past years, NLOK shows a decrease in Revenue. The Revenue has been decreasing by -7.00% on average per year.
EPS 1Y (TTM)10.43%
EPS 3Y3.25%
EPS 5Y8.02%
EPS Q2Q%4.65%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.42%
Revenue growth 5Y-7%
Sales Q2Q%8.09%
3.2 Future
- NLOK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.98% yearly.
- The Revenue is expected to grow by 4.64% on average over the next years.
EPS Next Y6.2%
EPS Next 2Y7.23%
EPS Next 3Y8.03%
EPS Next 5Y7.98%
Revenue Next Year5.5%
Revenue Next 2Y6.79%
Revenue Next 3Y6.75%
Revenue Next 5Y4.64%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- NLOK is valuated correctly with a Price/Earnings ratio of 12.03.
- When comparing the Price/Earnings ratio of NLOK to the average of the S&P500 Index (27.30), we can say NLOK is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.76, the valuation of NLOK can be described as very reasonable.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. NLOK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.94
PEG (5Y)1.5
EPS Next 2Y7.23%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
- NLOK has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
- NLOK's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
- The dividend of NLOK is nicely growing with an annual growth rate of 18.56%!
- NLOK has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)18.56%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 50.59% of the earnings are spent on dividend by NLOK. This is a bit on the high side, but may be sustainable.
- NLOK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.59%
EPS Next 2Y7.23%
EPS Next 3Y8.03%
NORTONLIFELOCK INC / NLOK FAQ
What is the ChartMill fundamental rating of NORTONLIFELOCK INC (NLOK) stock?
ChartMill assigns a fundamental rating of 4 / 10 to NLOK.
Can you provide the valuation status for NORTONLIFELOCK INC?
ChartMill assigns a valuation rating of 3 / 10 to NORTONLIFELOCK INC (NLOK). This can be considered as Overvalued.
Can you provide the profitability details for NORTONLIFELOCK INC?
NORTONLIFELOCK INC (NLOK) has a profitability rating of 7 / 10.
What are the PE and PB ratios of NORTONLIFELOCK INC (NLOK) stock?
The Price/Earnings (PE) ratio for NORTONLIFELOCK INC (NLOK) is 12.03 and the Price/Book (PB) ratio is 8.43.
Can you provide the financial health for NLOK stock?
The financial health rating of NORTONLIFELOCK INC (NLOK) is 1 / 10.