NETAPP INC (NTAP)
US64110D1046 - Common Stock
NTAP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 31 industry peers in the Technology Hardware, Storage & Peripherals industry. NTAP has an excellent profitability rating, but there are some minor concerns on its financial health. NTAP is not valued too expensively and it also shows a decent growth rate. NTAP also has an excellent dividend rating. With these ratings, NTAP could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year NTAP was profitable.
In the past year NTAP had a positive cash flow from operations.
NTAP had positive earnings in each of the past 5 years.
In the past 5 years NTAP always reported a positive cash flow from operatings.
1.2 Ratios
NTAP has a better Return On Assets (12.78%) than 90.32% of its industry peers.
NTAP has a better Return On Equity (129.04%) than 96.77% of its industry peers.
NTAP's Return On Invested Capital of 23.44% is amongst the best of the industry. NTAP outperforms 83.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTAP is in line with the industry average of 15.77%.
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
With an excellent Profit Margin value of 17.78%, NTAP belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
In the last couple of years the Profit Margin of NTAP has declined.
With an excellent Operating Margin value of 21.74%, NTAP belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Operating Margin of NTAP has remained more or less at the same level.
Looking at the Gross Margin, with a value of 71.10%, NTAP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
NTAP's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NTAP is creating value.
The number of shares outstanding for NTAP has been reduced compared to 1 year ago.
NTAP has less shares outstanding than it did 5 years ago.
NTAP has a better debt/assets ratio than last year.
2.2 Solvency
NTAP has an Altman-Z score of 2.97. This is not the best score and indicates that NTAP is in the grey zone with still only limited risk for bankruptcy at the moment.
NTAP has a better Altman-Z score (2.97) 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.
Looking at the Debt to Equity ratio, with a value of 1.39, NTAP is doing worse than 70.97% of the companies in the same industry.
Although NTAP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.99
WACC11.8%
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: 83.87% 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.
NTAP's Quick ratio of 0.84 is on the low side compared to the rest of the industry. NTAP is outperformed by 64.52% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
The Revenue has been growing slightly by 6.10% in the past year.
Measured over the past years, NTAP shows a small growth in Revenue. The Revenue has been growing by 0.39% on average per year.
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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 16.52, NTAP is valued correctly.
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.
NTAP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 14.78 indicates a correct valuation of NTAP.
61.29% of the companies in the same industry are more expensive than NTAP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, NTAP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
NTAP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTAP is cheaper than 70.97% of the companies 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 | 17.51 | ||
| EV/EBITDA | 13.92 |
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)1.09
PEG (5Y)2.22
EPS Next 2Y11.3%
EPS Next 3Y10.6%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
NTAP's Dividend Yield is rather good when compared to the industry average which is at 3.03. NTAP pays more dividend than 80.65% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, NTAP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of NTAP has a limited annual growth rate of 4.43%.
NTAP has been paying a dividend for at least 10 years, so it has 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
36.49% of the earnings are spent on dividend by NTAP. This is a low number and 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 (12/20/2024, 8:00:01 PM)
After market: 119.23 +0.78 (+0.66%)118.45
+1.87 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners94.7%
Inst Owner Change-0.37%
Ins Owners0.3%
Ins Owner Change-2.85%
Market Cap24.08B
Analysts70.34
Price Target140.61 (18.71%)
Short Float %4.58%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)4.3%
PT rev (3m)7.67%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)3.79%
EPS NY rev (1m)2.82%
EPS NY rev (3m)2.81%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.52 | ||
| Fwd PE | 14.78 | ||
| P/S | 3.72 | ||
| P/FCF | 17.51 | ||
| P/OCF | 15.61 | ||
| P/B | 27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.92 |
EPS(TTM)7.17
EY6.05%
EPS(NY)8.02
Fwd EY6.77%
FCF(TTM)6.76
FCFY5.71%
OCF(TTM)7.59
OCFY6.41%
SpS31.84
BVpS4.39
TBVpS-9.66
PEG (NY)1.09
PEG (5Y)2.22
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 | 2.97 |
F-Score8
WACC11.8%
ROIC/WACC1.99
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 Year21.55%
EBIT Next 3Y10.67%
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%