NETAPP INC (NTAP)
US64110D1046 - Common Stock
We assign a fundamental rating of 6 out of 10 to NTAP. NTAP was compared to 32 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 has a correct valuation and a medium growth rate. Finally 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.
NTAP had a positive operating cash flow in the past year.
In the past 5 years NTAP has always been profitable.
NTAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTAP has a better Return On Assets (11.65%) than 84.38% of its industry peers.
The Return On Equity of NTAP (116.79%) is better than 96.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.14%, NTAP belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NTAP is in line with the industry average of 16.81%.
The last Return On Invested Capital (22.14%) for NTAP is above the 3 year average (15.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 116.79% | ||
| ROIC | 22.14% |
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 (17.01%) than 93.75% of its industry peers.
In the last couple of years the Profit Margin of NTAP has declined.
Looking at the Operating Margin, with a value of 21.34%, NTAP belongs to the top of the industry, outperforming 90.63% 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.
NTAP has a better Gross Margin (71.11%) than 96.88% of its industry peers.
NTAP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.34% | ||
| PM (TTM) | 17.01% | ||
| GM | 71.11% |
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.
NTAP has a better debt/assets ratio than last year.
2.2 Solvency
NTAP has an Altman-Z score of 2.89. 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 (2.89) than 75.00% of its industry peers.
The Debt to FCF ratio of NTAP is 1.69, which is an excellent value as it means it would take NTAP, only 1.69 years of fcf income to pay off all of its debts.
NTAP has a Debt to FCF ratio of 1.69. This is amongst the best in the industry. NTAP outperforms 81.25% of its industry peers.
NTAP has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
NTAP's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. NTAP is outperformed by 71.88% of its industry peers.
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 | 1.34 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 2.89 |
ROIC/WACC2.1
WACC10.55%
2.3 Liquidity
A Current Ratio of 0.96 indicates that NTAP may have some problems paying its short term obligations.
The Current ratio of NTAP (0.96) is worse than 81.25% of its industry peers.
A Quick Ratio of 0.91 indicates that NTAP may have some problems paying its short term obligations.
NTAP has a worse Quick ratio (0.91) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
NTAP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.19%, 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.
NTAP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.82%.
NTAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.39% yearly.
EPS 1Y (TTM)24.19%
EPS 3Y16.9%
EPS 5Y7.44%
EPS Q2Q%35.65%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y2.95%
Revenue growth 5Y0.39%
Sales Q2Q%7.61%
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 10.09% on average per year.
NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
EPS Next Y12.03%
EPS Next 2Y9.34%
EPS Next 3Y10.09%
EPS Next 5YN/A
Revenue Next Year5.44%
Revenue Next 2Y5.19%
Revenue Next 3Y5.17%
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
With a Price/Earnings ratio of 17.35, NTAP is valued on the expensive side.
Based on the Price/Earnings ratio, NTAP is valued a bit cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. NTAP is valued slightly cheaper when compared to this.
NTAP is valuated correctly with a Price/Forward Earnings ratio of 15.43.
The rest of the industry has a similar Price/Forward Earnings ratio as NTAP.
The average S&P500 Price/Forward Earnings ratio is at 23.50. NTAP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than NTAP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NTAP is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.31 | ||
| EV/EBITDA | 13.9 |
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)1.44
PEG (5Y)2.33
EPS Next 2Y9.34%
EPS Next 3Y10.09%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.76%.
NTAP's Dividend Yield is rather good when compared to the industry average which is at 2.98. NTAP pays more dividend than 81.25% of the companies in the same industry.
NTAP's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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 Years0
Div Non Decr Years10
5.3 Sustainability
38.43% of the earnings are spent on dividend by NTAP. This is a low number and sustainable payout ratio.
The dividend of NTAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.43%
EPS Next 2Y9.34%
EPS Next 3Y10.09%
NETAPP INC
NASDAQ:NTAP (11/18/2024, 8:00:01 PM)
Premarket: 118.8 -0.54 (-0.45%)119.34
+2.13 (+1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 15.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.44
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 116.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.34% | ||
| PM (TTM) | 17.01% | ||
| GM | 71.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)24.19%
EPS 3Y16.9%
EPS 5Y
EPS Q2Q%
EPS Next Y12.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.82%
Revenue growth 3Y2.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y