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NORTONLIFELOCK INC (NLOK) Stock Fundamental Analysis

USA - NASDAQ:NLOK - US6687711084 - Common Stock

21.66 USD
-0.5 (-2.26%)
Last: 11/7/2022, 8:00:02 PM
21.66 USD
0 (0%)
After Hours: 11/7/2022, 8:00:02 PM
Fundamental Rating

2

Taking everything into account, NLOK scores 2 out of 10 in our fundamental rating. NLOK was compared to 281 industry peers in the Software industry. Both the profitability and financial health of NLOK have multiple concerns. While showing a medium growth rate, NLOK is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

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.
NLOK had positive earnings in each of the past 5 years.
Of the past 5 years NLOK 4 years had a positive operating cash flow.
NLOK Yearly Net Income VS EBIT VS OCF VS FCFNLOK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

1.2 Ratios

Industry RankSector 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
NLOK Yearly ROA, ROE, ROICNLOK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10K 20K 30K

1.3 Margins

NLOK's Profit Margin has improved in the last couple of years.
NLOK's Operating Margin has improved in the last couple of years.
Industry RankSector 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
NLOK Yearly Profit, Operating, Gross MarginsNLOK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 50 100 150

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0

2. Health

2.1 Basic Checks

NLOK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NLOK has been increased compared to 1 year ago.
Compared to 1 year ago, NLOK has an improved debt to assets ratio.
NLOK Yearly Shares OutstandingNLOK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
NLOK Yearly Total Debt VS Total AssetsNLOK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

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.
NLOK has a debt to FCF ratio of 12.98. This is a negative value and a sign of low solvency as NLOK would need 12.98 years to pay back of 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 RankSector Rank
Debt/Equity 5.82
Debt/FCF 12.98
Altman-Z 0.75
ROIC/WACC0.8
WACC7.39%
NLOK Yearly LT Debt VS Equity VS FCFNLOK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

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.
A Quick Ratio of 0.57 indicates that NLOK may have some problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.57
NLOK Yearly Current Assets VS Current LiabilitesNLOK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.43% over the past year.
NLOK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.02% yearly.
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

Based on estimates for the next years, NLOK will show a small growth in Earnings Per Share. The EPS will grow by 7.98% on average per year.
NLOK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
NLOK Yearly Revenue VS EstimatesNLOK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
NLOK Yearly EPS VS EstimatesNLOK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.03, NLOK is valued correctly.
NLOK is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of NLOK.
NLOK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.62.
Industry RankSector Rank
PE 12.03
Fwd PE 10.76
NLOK Price Earnings VS Forward Price EarningsNLOK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF 18.47
EV/EBITDA 20.97
NLOK Per share dataNLOK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -5 -10 -15

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%

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3

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.
Compared to an average S&P500 Dividend Yield of 2.44, NLOK has a dividend comparable with the average S&P500 company.
Industry RankSector 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 paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)18.56%
Div Incr YearsN/A
Div Non Decr YearsN/A
NLOK Yearly Dividends per shareNLOK Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

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%
NLOK Yearly Income VS Free CF VS DividendNLOK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B
NLOK Dividend Payout.NLOK Dividend Payout, showing the Payout Ratio.NLOK Dividend Payout.PayoutRetained Earnings

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NORTONLIFELOCK INC

NASDAQ:NLOK (11/7/2022, 8:00:02 PM)

After market: 21.66 0 (0%)

21.66

-0.5 (-2.26%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-08 2022-11-08/amc
Earnings (Next)02-01 2023-02-01
Inst Owners79.11%
Inst Owner Change0.54%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%.