27.015 USD
-0.04 (-0.17%)
Taking everything into account, NTCT scores 6 out of 10 in our fundamental rating. NTCT was compared to 48 industry peers in the Communications Equipment industry. NTCT has an excellent profitability rating, but there are some minor concerns on its financial health. NTCT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make NTCT suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NTCT was profitable.
In the past year NTCT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NTCT reported negative net income in multiple years.
Each year in the past 5 years NTCT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.12%, NTCT is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
NTCT has a Return On Equity of 5.69%. This is in the better half of the industry: NTCT outperforms 68.75% of its industry peers.
The Return On Invested Capital of NTCT (4.83%) is better than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTCT is significantly below the industry average of 12.15%.
The 3 year average ROIC (2.83%) for NTCT is below the current ROIC(4.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 5.69% | ||
| ROIC | 4.83% |
ROA(3y)-6.79%
ROA(5y)-3.72%
ROE(3y)-9.46%
ROE(5y)-5.14%
ROIC(3y)2.83%
ROIC(5y)2.2%
1.3 Margins
The Profit Margin of NTCT (10.38%) is better than 83.33% of its industry peers.
NTCT has a better Operating Margin (12.74%) than 77.08% of its industry peers.
In the last couple of years the Operating Margin of NTCT has grown nicely.
With an excellent Gross Margin value of 79.21%, NTCT belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
In the last couple of years the Gross Margin of NTCT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.74% | ||
| PM (TTM) | 10.38% | ||
| GM | 79.21% |
OM growth 3Y19.56%
OM growth 5Y33.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.45%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
NTCT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NTCT has been increased compared to 1 year ago.
The number of shares outstanding for NTCT remains at a similar level compared to 5 years ago.
There is no outstanding debt for NTCT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
NTCT has an Altman-Z score of 2.68. This is not the best score and indicates that NTCT is in the grey zone with still only limited risk for bankruptcy at the moment.
NTCT has a better Altman-Z score (2.68) than 62.50% of its industry peers.
There is no outstanding debt for NTCT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.49
WACC9.82%
2.3 Liquidity
A Current Ratio of 1.88 indicates that NTCT should not have too much problems paying its short term obligations.
NTCT has a Current ratio of 1.88. This is comparable to the rest of the industry: NTCT outperforms 43.75% of its industry peers.
A Quick Ratio of 1.84 indicates that NTCT should not have too much problems paying its short term obligations.
NTCT has a better Quick ratio (1.84) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.21% over the past year.
NTCT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.94% yearly.
Looking at the last year, NTCT shows a quite strong growth in Revenue. The Revenue has grown by 9.60% in the last year.
NTCT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
EPS 1Y (TTM)19.21%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%31.91%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%14.6%
3.2 Future
The Earnings Per Share is expected to grow by 6.63% on average over the next years.
NTCT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
EPS Next 5YN/A
Revenue Next Year4.81%
Revenue Next 2Y3.71%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
NTCT is valuated reasonably with a Price/Earnings ratio of 11.16.
Based on the Price/Earnings ratio, NTCT is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, NTCT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.48, the valuation of NTCT can be described as reasonable.
Based on the Price/Forward Earnings ratio, NTCT is valued cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NTCT to the average of the S&P500 Index (23.13), we can say NTCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTCT is valued cheaper than 81.25% of the companies in the same industry.
NTCT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTCT is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.62 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NTCT may justify a higher PE ratio.
PEG (NY)1.02
PEG (5Y)1.61
EPS Next 2Y7.99%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
NTCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:NTCT (1/2/2026, 9:46:24 AM)
27.015
-0.04 (-0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.17%
Inst Owner Change8.87%
Ins Owners3.7%
Ins Owner Change1.66%
Market Cap1.95B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (28.63%)
Short Float %2.59%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.05%
Min EPS beat(2)12.99%
Max EPS beat(2)37.11%
EPS beat(4)3
Avg EPS beat(4)19.74%
Min EPS beat(4)-0.04%
Max EPS beat(4)37.11%
EPS beat(8)7
Avg EPS beat(8)38.07%
EPS beat(12)11
Avg EPS beat(12)32.8%
EPS beat(16)15
Avg EPS beat(16)30.67%
Revenue beat(2)2
Avg Revenue beat(2)4.15%
Min Revenue beat(2)1.1%
Max Revenue beat(2)7.2%
Revenue beat(4)4
Avg Revenue beat(4)5.58%
Min Revenue beat(4)1.1%
Max Revenue beat(4)11.59%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)8
Avg Revenue beat(12)1.7%
Revenue beat(16)10
Avg Revenue beat(16)1.89%
PT rev (1m)0%
PT rev (3m)13.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)2.93%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.48 | ||
| P/S | 2.26 | ||
| P/FCF | 7.62 | ||
| P/OCF | 7.41 | ||
| P/B | 1.24 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)2.42
EY8.96%
EPS(NY)2.58
Fwd EY9.54%
FCF(TTM)3.54
FCFY13.12%
OCF(TTM)3.65
OCFY13.49%
SpS11.95
BVpS21.8
TBVpS3.68
PEG (NY)1.02
PEG (5Y)1.61
Graham Number34.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 5.69% | ||
| ROCE | 6.11% | ||
| ROIC | 4.83% | ||
| ROICexc | 6.77% | ||
| ROICexgc | N/A | ||
| OM | 12.74% | ||
| PM (TTM) | 10.38% | ||
| GM | 79.21% | ||
| FCFM | 29.65% |
ROA(3y)-6.79%
ROA(5y)-3.72%
ROE(3y)-9.46%
ROE(5y)-5.14%
ROIC(3y)2.83%
ROIC(5y)2.2%
ROICexc(3y)3.67%
ROICexc(5y)2.85%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.58%
ROCE(5y)2.78%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y37.03%
ROICexc growth 5Y48.15%
OM growth 3Y19.56%
OM growth 5Y33.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.45%
GM growth 5Y1.45%
F-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 12.26% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 73.4 | ||
| Cash Conversion | 154.83% | ||
| Profit Quality | 285.58% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.84 | ||
| Altman-Z | 2.68 |
F-Score9
WACC9.82%
ROIC/WACC0.49
Cap/Depr(3y)10.43%
Cap/Depr(5y)11.55%
Cap/Sales(3y)0.91%
Cap/Sales(5y)1.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.21%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%31.91%
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
EPS Next 5YN/A
Revenue 1Y (TTM)9.6%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%14.6%
Revenue Next Year4.81%
Revenue Next 2Y3.71%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
EBIT growth 1Y158.09%
EBIT growth 3Y18.01%
EBIT growth 5Y31.51%
EBIT Next Year14.3%
EBIT Next 3Y8.33%
EBIT Next 5YN/A
FCF growth 1Y151.53%
FCF growth 3Y-9.6%
FCF growth 5Y0.57%
OCF growth 1Y138.39%
OCF growth 3Y-9.74%
OCF growth 5Y-0.66%
NETSCOUT SYSTEMS INC / NTCT FAQ
What is the fundamental rating for NTCT stock?
ChartMill assigns a fundamental rating of 6 / 10 to NTCT.
Can you provide the valuation status for NETSCOUT SYSTEMS INC?
ChartMill assigns a valuation rating of 8 / 10 to NETSCOUT SYSTEMS INC (NTCT). This can be considered as Undervalued.
Can you provide the profitability details for NETSCOUT SYSTEMS INC?
NETSCOUT SYSTEMS INC (NTCT) has a profitability rating of 7 / 10.
How financially healthy is NETSCOUT SYSTEMS INC?
The financial health rating of NETSCOUT SYSTEMS INC (NTCT) is 6 / 10.