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NORTONLIFELOCK INC (NLOK) Stock Fundamental Analysis

NASDAQ:NLOK - Nasdaq - US6687711084 - Common Stock - Currency: USD

21.66  -0.5 (-2.26%)

After market: 21.66 0 (0%)

Fundamental Rating

2

Overall NLOK gets a fundamental rating of 2 out of 10. We evaluated NLOK against 282 industry peers in the Software industry. NLOK may be in some trouble as it scores bad on both profitability and health. 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.
NLOK had a positive operating cash flow in 4 of the past 5 years.
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.
In the last couple of years the Operating Margin of NLOK has grown nicely.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NLOK is destroying value.
Compared to 1 year ago, NLOK has more shares outstanding
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.
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 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

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 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

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.
The Revenue has been growing slightly by 6.84% in the past 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

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.
Based on estimates for the next years, NLOK will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
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.
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

A Price/Earnings ratio of 12.03 indicates a correct valuation of NLOK.
The average S&P500 Price/Earnings ratio is at 27.30. NLOK is valued rather cheaply when compared to this.
NLOK is valuated reasonably with a Price/Forward Earnings ratio of 10.76.
NLOK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
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 20 40 60

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%.
NLOK's Dividend Yield is comparable with the S&P500 average which is at 2.37.
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.
The dividend of NLOK is growing, but the earnings are growing slower. 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 SectorInformation Technology
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 Change-0.02%
Ins Owners0.22%
Ins Owner Change0%
Market Cap14.32B
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
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
ROICexcg growth 3YN/A
ROICexcg 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