NORTONLIFELOCK INC (NLOK) Fundamental Analysis & Valuation

NASDAQ:NLOK • US6687711084

Current stock price

21.66 USD
-0.5 (-2.26%)
At close:
21.66 USD
0 (0%)
After Hours:

This NLOK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. NLOK Profitability Analysis

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 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 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 2016 2017 2018 2019 2020 2021 2022 0 10K 20K 30K

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 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 2016 2017 2018 2019 2020 2021 2022 0 50 100 150

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0

2. NLOK Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NLOK is destroying value.
  • The number of shares outstanding for NLOK has been increased compared to 1 year ago.
  • NLOK has a better debt/assets ratio than last year.
NLOK Yearly Shares OutstandingNLOK Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

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.
  • 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.
  • NLOK has a Debt/Equity ratio of 5.82. This is a high value indicating a heavy dependency on external 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 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.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NLOK Growth Analysis

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.
  • Measured over the past years, NLOK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.02% on average per year.
  • Looking at the last year, NLOK shows a small growth in Revenue. The Revenue has grown by 6.84% in the last year.
  • The Revenue has been decreasing by -7.00% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 7.98% on average over the next years.
  • 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

  • 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.
NLOK Yearly Revenue VS EstimatesNLOK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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 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. NLOK Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.03, NLOK is valued correctly.
  • NLOK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
  • Based on the Price/Forward Earnings ratio of 10.76, the valuation of NLOK can be described as reasonable.
  • The average S&P500 Price/Forward Earnings ratio is at 22.29. NLOK is valued rather cheaply when compared to this.
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

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 an expensive valuation of the company.
PEG (NY)1.94
PEG (5Y)1.5
EPS Next 2Y7.23%
EPS Next 3Y8.03%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. NLOK Dividend Analysis

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 1.81, NLOK pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.26%

5.2 History

  • On average, the dividend of NLOK grows each year by 18.56%, which is quite nice.
  • 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

  • NLOK pays out 50.59% of its income as dividend. 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 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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NLOK Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)02-01
Inst Owners79.11%
Inst Owner Change-0.46%
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 Number0 (-100%)
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 Fundamental Analysis 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.


What is the profitability of NLOK stock?

NORTONLIFELOCK INC (NLOK) has a profitability rating of 7 / 10.


Can you provide the expected EPS growth for NLOK stock?

The Earnings per Share (EPS) of NORTONLIFELOCK INC (NLOK) is expected to grow by 6.2% in the next year.


How sustainable is the dividend of NORTONLIFELOCK INC (NLOK) stock?

The dividend rating of NORTONLIFELOCK INC (NLOK) is 5 / 10 and the dividend payout ratio is 50.59%.