NETAPP INC (NTAP) Stock Fundamental Analysis
NASDAQ:NTAP - Nasdaq - US64110D1046 - Common Stock
Overall NTAP gets a fundamental rating of 7 out of 10. We evaluated NTAP against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the health and profitability get an excellent rating, making NTAP a very profitable company, without any liquidiy or solvency issues. NTAP has a decent growth rate and is not valued too expensively. NTAP also has an excellent dividend rating. With these ratings, NTAP could be worth investigating further for dividend and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year NTAP was profitable.
NTAP had a positive operating cash flow in the past year.
Each year in the past 5 years NTAP has been profitable.
Each year in the past 5 years NTAP had a positive operating cash flow.
1.2 Ratios
NTAP has a better Return On Assets (12.78%) than 90.32% of its industry peers.
Looking at the Return On Equity, with a value of 129.04%, NTAP belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 23.44%, NTAP belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTAP is in line with the industry average of 16.39%.
The last Return On Invested Capital (23.44%) for NTAP is above the 3 year average (15.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 129.04% | ||
| ROIC | 23.44% |
ROA(3y)10.76%
ROA(5y)10.2%
ROE(3y)102.59%
ROE(5y)150.56%
ROIC(3y)15.62%
ROIC(5y)15.13%
1.3 Margins
NTAP has a better Profit Margin (17.78%) than 96.77% of its industry peers.
NTAP's Profit Margin has declined in the last couple of years.
NTAP's Operating Margin of 21.74% is amongst the best of the industry. NTAP outperforms 93.55% of its industry peers.
In the last couple of years the Operating Margin of NTAP has remained more or less at the same level.
NTAP has a better Gross Margin (71.10%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of NTAP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.74% | ||
| PM (TTM) | 17.78% | ||
| GM | 71.1% |
OM growth 3Y7.4%
OM growth 5Y1%
PM growth 3Y7.37%
PM growth 5Y-3.73%
GM growth 3Y2.12%
GM growth 5Y1.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NTAP is creating value.
NTAP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NTAP has been reduced compared to 5 years ago.
The debt/assets ratio for NTAP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.04 indicates that NTAP is not in any danger for bankruptcy at the moment.
The Altman-Z score of NTAP (3.04) is better than 74.19% of its industry peers.
The Debt to FCF ratio of NTAP is 1.45, which is an excellent value as it means it would take NTAP, only 1.45 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.45, NTAP belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
A Debt/Equity ratio of 1.39 is on the high side and indicates that NTAP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.39, NTAP is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for NTAP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | 3.04 |
ROIC/WACC2.08
WACC11.29%
2.3 Liquidity
A Current Ratio of 0.91 indicates that NTAP may have some problems paying its short term obligations.
With a Current ratio value of 0.91, NTAP is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that NTAP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.84, NTAP is doing worse than 61.29% of the companies in the same industry.
The current and quick ratio evaluation for NTAP is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
NTAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.13%, which is quite impressive.
NTAP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
Looking at the last year, NTAP shows a small growth in Revenue. The Revenue has grown by 6.10% in the last year.
The Revenue has been growing slightly by 0.39% on average over the past years.
EPS 1Y (TTM)27.13%
EPS 3Y16.9%
EPS 5Y7.44%
EPS Q2Q%18.35%
Revenue 1Y (TTM)6.1%
Revenue growth 3Y2.95%
Revenue growth 5Y0.39%
Sales Q2Q%6.15%
3.2 Future
Based on estimates for the next years, NTAP will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y15.18%
EPS Next 2Y11.3%
EPS Next 3Y10.6%
EPS Next 5YN/A
Revenue Next Year6.33%
Revenue Next 2Y5.95%
Revenue Next 3Y5.75%
Revenue Next 5YN/A
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 accelerating.
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
A Price/Earnings ratio of 17.25 indicates a rather expensive valuation of NTAP.
NTAP's Price/Earnings ratio is a bit cheaper when compared to the industry. NTAP is cheaper than 70.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of NTAP to the average of the S&P500 Index (28.29), we can say NTAP is valued slightly cheaper.
NTAP is valuated correctly with a Price/Forward Earnings ratio of 15.43.
NTAP's Price/Forward Earnings ratio is in line with the industry average.
NTAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTAP indicates a somewhat cheap valuation: NTAP is cheaper than 70.97% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NTAP is valued a bit cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.29 | ||
| EV/EBITDA | 14.56 |
4.3 Compensation for Growth
NTAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NTAP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.14
PEG (5Y)2.32
EPS Next 2Y11.3%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, NTAP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, NTAP pays a better dividend. On top of this NTAP pays more dividend than 80.65% of the companies listed in the same industry.
NTAP's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of NTAP has a limited annual growth rate of 4.43%.
NTAP has paid a dividend for at least 10 years, which is a reliable track record.
NTAP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.43%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
NTAP pays out 36.49% of its income as dividend. This is a sustainable payout ratio.
NTAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.49%
EPS Next 2Y11.3%
EPS Next 3Y10.6%
NETAPP INC
NASDAQ:NTAP (1/21/2025, 8:17:35 PM)
After market: 123.67 0 (0%)123.67
+1.58 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners94.7%
Inst Owner Change0.04%
Ins Owners0.3%
Ins Owner Change-2.28%
Market Cap25.14B
Analysts71.03
Price Target140.82 (13.87%)
Short Float %5.28%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend1.99
Dividend Growth(5Y)4.43%
DP36.49%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.99%
Min EPS beat(2)2.8%
Max EPS beat(2)5.17%
EPS beat(4)3
Avg EPS beat(4)4.84%
Min EPS beat(4)-1.16%
Max EPS beat(4)12.55%
EPS beat(8)7
Avg EPS beat(8)6.39%
EPS beat(12)11
Avg EPS beat(12)7.2%
EPS beat(16)15
Avg EPS beat(16)7.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.19%
Max Revenue beat(4)-0.96%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)3
Avg Revenue beat(12)-1.47%
Revenue beat(16)5
Avg Revenue beat(16)-1.03%
PT rev (1m)0.15%
PT rev (3m)4.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.79%
EPS NY rev (1m)0%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.25 | ||
| Fwd PE | 15.43 | ||
| P/S | 3.88 | ||
| P/FCF | 18.29 | ||
| P/OCF | 16.3 | ||
| P/B | 28.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.56 |
EPS(TTM)7.17
EY5.8%
EPS(NY)8.02
Fwd EY6.48%
FCF(TTM)6.76
FCFY5.47%
OCF(TTM)7.59
OCFY6.14%
SpS31.84
BVpS4.39
TBVpS-9.66
PEG (NY)1.14
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.78% | ||
| ROE | 129.04% | ||
| ROCE | 30.02% | ||
| ROIC | 23.44% | ||
| ROICexc | 44.56% | ||
| ROICexgc | N/A | ||
| OM | 21.74% | ||
| PM (TTM) | 17.78% | ||
| GM | 71.1% | ||
| FCFM | 21.24% |
ROA(3y)10.76%
ROA(5y)10.2%
ROE(3y)102.59%
ROE(5y)150.56%
ROIC(3y)15.62%
ROIC(5y)15.13%
ROICexc(3y)38.41%
ROICexc(5y)43.58%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.01%
ROCE(5y)19.93%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.15%
ROICexc growth 5Y-12.3%
OM growth 3Y7.4%
OM growth 5Y1%
PM growth 3Y7.37%
PM growth 5Y-3.73%
GM growth 3Y2.12%
GM growth 5Y1.96%
F-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 66.4% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 23.85 | ||
| Cash Conversion | 92.95% | ||
| Profit Quality | 119.46% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 3.04 |
F-Score8
WACC11.29%
ROIC/WACC2.08
Cap/Depr(3y)91.22%
Cap/Depr(5y)83.23%
Cap/Sales(3y)3.27%
Cap/Sales(5y)2.98%
Profit Quality(3y)109.48%
Profit Quality(5y)120.63%
High Growth Momentum
Growth
EPS 1Y (TTM)27.13%
EPS 3Y16.9%
EPS 5Y7.44%
EPS Q2Q%18.35%
EPS Next Y15.18%
EPS Next 2Y11.3%
EPS Next 3Y10.6%
EPS Next 5YN/A
Revenue 1Y (TTM)6.1%
Revenue growth 3Y2.95%
Revenue growth 5Y0.39%
Sales Q2Q%6.15%
Revenue Next Year6.33%
Revenue Next 2Y5.95%
Revenue Next 3Y5.75%
Revenue Next 5YN/A
EBIT growth 1Y27.1%
EBIT growth 3Y10.57%
EBIT growth 5Y1.4%
EBIT Next Year25.12%
EBIT Next 3Y12.3%
EBIT Next 5YN/A
FCF growth 1Y53.63%
FCF growth 3Y9.32%
FCF growth 5Y5.55%
OCF growth 1Y32.33%
OCF growth 3Y8.12%
OCF growth 5Y4.67%