115.66 USD
-3.45 (-2.9%)
115.67 USD
+0.01 (+0.01%)
We assign a fundamental rating of 6 out of 10 to NTAP. NTAP was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While NTAP belongs to the best of the industry regarding profitability, 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
NTAP had positive earnings in the past year.
In the past year NTAP had a positive cash flow from operations.
In the past 5 years NTAP has always been profitable.
Each year in the past 5 years NTAP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.22%, NTAP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
NTAP has a better Return On Equity (119.37%) than 97.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.95%, NTAP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTAP is above the industry average of 15.26%.
The last Return On Invested Capital (19.95%) for NTAP is above the 3 year average (17.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 119.37% | ||
| ROIC | 19.95% |
ROA(3y)11.3%
ROA(5y)10.21%
ROE(3y)103.33%
ROE(5y)105.68%
ROIC(3y)17.3%
ROIC(5y)16.23%
1.3 Margins
With an excellent Profit Margin value of 17.73%, NTAP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NTAP's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.60%, NTAP belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
NTAP's Operating Margin has improved in the last couple of years.
The Gross Margin of NTAP (70.26%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of NTAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.6% | ||
| PM (TTM) | 17.73% | ||
| GM | 70.26% |
OM growth 3Y4.43%
OM growth 5Y4.81%
PM growth 3Y6.76%
PM growth 5Y3.58%
GM growth 3Y1.67%
GM growth 5Y0.95%
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.
Compared to 1 year ago, NTAP has less shares outstanding
The number of shares outstanding for NTAP has been reduced compared to 5 years ago.
The debt/assets ratio for NTAP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.99 indicates that NTAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
NTAP has a better Altman-Z score (2.99) than 65.71% of its industry peers.
NTAP has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
NTAP has a better Debt to FCF ratio (1.48) than 85.71% of its industry peers.
NTAP has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
NTAP has a worse Debt to Equity ratio (2.52) than 68.57% 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 | 2.52 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 2.99 |
ROIC/WACC2.48
WACC8.03%
2.3 Liquidity
NTAP has a Current Ratio of 1.34. This is a normal value and indicates that NTAP is financially healthy and should not expect problems in meeting its short term obligations.
NTAP's Current ratio of 1.34 is in line compared to the rest of the industry. NTAP outperforms 45.71% of its industry peers.
NTAP has a Quick Ratio of 1.30. This is a normal value and indicates that NTAP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, NTAP is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
NTAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.77%.
Measured over the past years, NTAP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.19% on average per year.
NTAP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
Measured over the past years, NTAP shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
EPS 1Y (TTM)3.77%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%9.63%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%2.83%
3.2 Future
The Earnings Per Share is expected to grow by 8.53% 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 4.23% yearly.
EPS Next Y10.99%
EPS Next 2Y9.57%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue Next Year2.99%
Revenue Next 2Y3.92%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.55 indicates a correct valuation of NTAP.
Based on the Price/Earnings ratio, NTAP is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NTAP to the average of the S&P500 Index (26.54), we can say NTAP is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.25, NTAP is valued correctly.
Based on the Price/Forward Earnings ratio, NTAP is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
NTAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than NTAP, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTAP indicates a somewhat cheap valuation: NTAP is cheaper than 77.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NTAP may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)1.28
EPS Next 2Y9.57%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, NTAP has a reasonable but not impressive dividend return.
NTAP's Dividend Yield is rather good when compared to the industry average which is at 1.72. NTAP pays more dividend than 88.57% of the companies in the same industry.
NTAP's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of NTAP has a limited annual growth rate of 1.72%.
NTAP has been paying a dividend for at least 10 years, so it has a reliable track record.
NTAP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.72%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
NTAP pays out 35.51% of its income as dividend. This is a sustainable payout ratio.
The dividend of NTAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.51%
EPS Next 2Y9.57%
EPS Next 3Y8.53%
115.66
-3.45 (-2.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners100.04%
Inst Owner Change0.36%
Ins Owners0.23%
Ins Owner Change-0.92%
Market Cap22.91B
Revenue(TTM)6.64B
Net Income(TTM)1.18B
Analysts71.85
Price Target125.69 (8.67%)
Short Float %7.75%
Short Ratio7.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP35.51%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.72%
Min EPS beat(2)-1.15%
Max EPS beat(2)6.58%
EPS beat(4)1
Avg EPS beat(4)0.83%
Min EPS beat(4)-1.89%
Max EPS beat(4)6.58%
EPS beat(8)4
Avg EPS beat(8)2.83%
EPS beat(12)8
Avg EPS beat(12)4.54%
EPS beat(16)12
Avg EPS beat(16)5.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.03%
Max Revenue beat(4)-0.99%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.64%
PT rev (1m)2.68%
PT rev (3m)5.01%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)2%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 13.25 | ||
| P/S | 3.45 | ||
| P/FCF | 13.67 | ||
| P/OCF | 12.32 | ||
| P/B | 23.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.86 |
EPS(TTM)7.44
EY6.43%
EPS(NY)8.73
Fwd EY7.55%
FCF(TTM)8.46
FCFY7.32%
OCF(TTM)9.39
OCFY8.12%
SpS33.51
BVpS4.98
TBVpS-8.97
PEG (NY)1.41
PEG (5Y)1.28
Graham Number28.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 119.37% | ||
| ROCE | 24.35% | ||
| ROIC | 19.95% | ||
| ROICexc | 39.06% | ||
| ROICexgc | 319.97% | ||
| OM | 22.6% | ||
| PM (TTM) | 17.73% | ||
| GM | 70.26% | ||
| FCFM | 25.25% |
ROA(3y)11.3%
ROA(5y)10.21%
ROE(3y)103.33%
ROE(5y)105.68%
ROIC(3y)17.3%
ROIC(5y)16.23%
ROICexc(3y)40.17%
ROICexc(5y)45.98%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.12%
ROCE(5y)19.81%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.26%
ROICexc growth 5Y0.5%
OM growth 3Y4.43%
OM growth 5Y4.81%
PM growth 3Y6.76%
PM growth 5Y3.58%
GM growth 3Y1.67%
GM growth 5Y0.95%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 83.64% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 18.52 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 142.4% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.99 |
F-Score5
WACC8.03%
ROIC/WACC2.48
Cap/Depr(3y)75.43%
Cap/Depr(5y)84.21%
Cap/Sales(3y)2.93%
Cap/Sales(5y)3.04%
Profit Quality(3y)112.04%
Profit Quality(5y)120.33%
High Growth Momentum
Growth
EPS 1Y (TTM)3.77%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%9.63%
EPS Next Y10.99%
EPS Next 2Y9.57%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%2.83%
Revenue Next Year2.99%
Revenue Next 2Y3.92%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
EBIT growth 1Y6.61%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year20.07%
EBIT Next 3Y9.34%
EBIT Next 5YN/A
FCF growth 1Y62.72%
FCF growth 3Y10.75%
FCF growth 5Y7.41%
OCF growth 1Y55%
OCF growth 3Y7.54%
OCF growth 5Y7.28%
NETAPP INC / NTAP FAQ
What is the ChartMill fundamental rating of NETAPP INC (NTAP) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NTAP.
What is the valuation status for NTAP stock?
ChartMill assigns a valuation rating of 5 / 10 to NETAPP INC (NTAP). This can be considered as Fairly Valued.
Can you provide the profitability details for NETAPP INC?
NETAPP INC (NTAP) has a profitability rating of 9 / 10.
How financially healthy is NETAPP INC?
The financial health rating of NETAPP INC (NTAP) is 6 / 10.
What is the earnings growth outlook for NETAPP INC?
The Earnings per Share (EPS) of NETAPP INC (NTAP) is expected to grow by 10.99% in the next year.