21.66 USD
-0.5 (-2.26%)
21.66 USD
0 (0%)
Taking everything into account, NLOK scores 2 out of 10 in our fundamental rating. NLOK was compared to 278 industry peers in the Software industry. NLOK may be in some trouble as it scores bad on both profitability and health. NLOK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NLOK was profitable.
In the past year NLOK had a positive cash flow from operations.
NLOK had positive earnings in each of the past 5 years.
NLOK had a positive operating cash flow in 4 of the past 5 years.
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.
In the last couple of years the Operating Margin of NLOK has grown nicely.
| 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
Based on the Altman-Z score of 0.75, we must say that NLOK is in the distress zone and 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.
NLOK has a Debt/Equity ratio of 5.82. This is a high value indicating a heavy dependency on external 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
A Current Ratio of 0.57 indicates that NLOK may have some problems paying its short term obligations.
A Quick Ratio of 0.57 indicates that NLOK may have some problems paying 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.
The Earnings Per Share has been growing by 8.02% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.84% in the past year.
NLOK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.00% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.03, the valuation of NLOK can be described as correct.
When comparing the Price/Earnings ratio of NLOK to the average of the S&P500 Index (26.39), we can say NLOK is valued rather cheaply.
The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of NLOK.
NLOK is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| 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 NLOK does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.94
PEG (5Y)1.5
EPS Next 2Y7.23%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, NLOK has a reasonable but not impressive dividend return.
Compared to an average S&P500 Dividend Yield of 1.87, NLOK pays a bit more dividend than the S&P500 average.
| 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
NLOK pays out 50.59% of its income as dividend. 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%
21.66
-0.5 (-2.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners79.11%
Inst Owner Change0.49%
Ins Owners0.22%
Ins Owner Change0%
Market Cap14.32B
Revenue(TTM)2.87B
Net Income(TTM)591.00M
Analysts76.92
Price Target27.07 (24.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend0.5
Dividend Growth(5Y)18.56%
DP50.59%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.46%
Min EPS beat(2)-6.13%
Max EPS beat(2)-4.78%
EPS beat(4)1
Avg EPS beat(4)-3.45%
Min EPS beat(4)-6.13%
Max EPS beat(4)0.97%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-15.97%
Min Revenue beat(2)-17.57%
Max Revenue beat(2)-14.37%
Revenue beat(4)0
Avg Revenue beat(4)-13%
Min Revenue beat(4)-17.57%
Max Revenue beat(4)-4.92%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.76 | ||
| P/S | 4.98 | ||
| P/FCF | 18.47 | ||
| P/OCF | 18.29 | ||
| P/B | 8.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.97 |
EPS(TTM)1.8
EY8.31%
EPS(NY)2.01
Fwd EY9.29%
FCF(TTM)1.17
FCFY5.41%
OCF(TTM)1.18
OCFY5.47%
SpS4.35
BVpS2.57
TBVpS-17.79
PEG (NY)1.94
PEG (5Y)1.5
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 34.81% | ||
| ROCE | N/A | ||
| ROIC | 5.9% | ||
| ROICexc | 6.44% | ||
| ROICexgc | N/A | ||
| OM | 33.52% | ||
| PM (TTM) | 20.57% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score4
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.82 | ||
| Debt/FCF | 12.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 5.44% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 131.13% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.75 |
F-Score4
WACC7.39%
ROIC/WACC0.8
Cap/Depr(3y)10.98%
Cap/Depr(5y)17.76%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.43%
EPS 3Y3.25%
EPS 5Y8.02%
EPS Q2Q%4.65%
EPS Next Y6.2%
EPS Next 2Y7.23%
EPS Next 3Y8.03%
EPS Next 5Y7.98%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.42%
Revenue growth 5Y-7%
Sales Q2Q%8.09%
Revenue Next Year5.5%
Revenue Next 2Y6.79%
Revenue Next 3Y6.75%
Revenue Next 5Y4.64%
EBIT growth 1Y-16.26%
EBIT growth 3Y39.82%
EBIT growth 5Y43.04%
EBIT Next Year11.19%
EBIT Next 3Y9.61%
EBIT Next 5Y6.54%
FCF growth 1Y158.45%
FCF growth 3Y-9.08%
FCF growth 5YN/A
OCF growth 1Y159.77%
OCF growth 3Y-13.31%
OCF growth 5YN/A
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.
What is the valuation status of NORTONLIFELOCK INC (NLOK) stock?
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.
How financially healthy is NORTONLIFELOCK INC?
The financial health rating of NORTONLIFELOCK INC (NLOK) is 1 / 10.
Is the dividend of NORTONLIFELOCK INC sustainable?
The dividend rating of NORTONLIFELOCK INC (NLOK) is 5 / 10 and the dividend payout ratio is 50.59%.