NETSCOUT SYSTEMS INC (NTCT) Fundamental Analysis & Valuation

NASDAQ:NTCT • US64115T1043

Current stock price

32.45 USD
-0.2 (-0.61%)
At close:
32.5995 USD
+0.15 (+0.46%)
After Hours:

This NTCT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NTCT Profitability Analysis

1.1 Basic Checks

  • In the past year NTCT was profitable.
  • NTCT had a positive operating cash flow in the past year.
  • In multiple years NTCT reported negative net income over the last 5 years.
  • Each year in the past 5 years NTCT had a positive operating cash flow.
NTCT Yearly Net Income VS EBIT VS OCF VS FCFNTCT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M

1.2 Ratios

  • With a decent Return On Assets value of 4.13%, NTCT is doing good in the industry, outperforming 72.34% of the companies in the same industry.
  • With a decent Return On Equity value of 5.84%, NTCT is doing good in the industry, outperforming 68.09% of the companies in the same industry.
  • NTCT has a better Return On Invested Capital (4.69%) than 68.09% of its industry peers.
  • NTCT had an Average Return On Invested Capital over the past 3 years of 2.83%. This is significantly below the industry average of 10.41%.
  • The last Return On Invested Capital (4.69%) for NTCT is above the 3 year average (2.83%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.13%
ROE 5.84%
ROIC 4.69%
ROA(3y)-6.79%
ROA(5y)-3.72%
ROE(3y)-9.46%
ROE(5y)-5.14%
ROIC(3y)2.83%
ROIC(5y)2.2%
NTCT Yearly ROA, ROE, ROICNTCT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5 -10 -15 -20

1.3 Margins

  • The Profit Margin of NTCT (11.13%) is better than 78.72% of its industry peers.
  • Looking at the Operating Margin, with a value of 12.95%, NTCT is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
  • In the last couple of years the Operating Margin of NTCT has grown nicely.
  • NTCT's Gross Margin of 79.25% is amongst the best of the industry. NTCT outperforms 95.74% of its industry peers.
  • In the last couple of years the Gross Margin of NTCT has remained more or less at the same level.
Industry RankSector Rank
OM 12.95%
PM (TTM) 11.13%
GM 79.25%
OM growth 3Y19.56%
OM growth 5Y33.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.45%
GM growth 5Y1.45%
NTCT Yearly Profit, Operating, Gross MarginsNTCT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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6

2. NTCT Health Analysis

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.
  • Compared to 1 year ago, NTCT has more shares outstanding
  • The number of shares outstanding for NTCT remains at a similar level compared to 5 years ago.
  • NTCT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NTCT Yearly Shares OutstandingNTCT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
NTCT Yearly Total Debt VS Total AssetsNTCT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • NTCT has an Altman-Z score of 2.84. 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's Altman-Z score of 2.84 is in line compared to the rest of the industry. NTCT outperforms 59.57% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.84
ROIC/WACC0.48
WACC9.68%
NTCT Yearly LT Debt VS Equity VS FCFNTCT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.3 Liquidity

  • NTCT has a Current Ratio of 1.94. This is a normal value and indicates that NTCT is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.94, NTCT perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
  • A Quick Ratio of 1.91 indicates that NTCT should not have too much problems paying its short term obligations.
  • NTCT's Quick ratio of 1.91 is in line compared to the rest of the industry. NTCT outperforms 55.32% of its industry peers.
Industry RankSector Rank
Current Ratio 1.94
Quick Ratio 1.91
NTCT Yearly Current Assets VS Current LiabilitesNTCT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NTCT Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.71% over the past year.
  • Measured over the past 5 years, NTCT shows a small growth in Earnings Per Share. The EPS has been growing by 6.94% on average per year.
  • The Revenue has been growing slightly by 4.91% in the past year.
  • Measured over the past years, NTCT shows a decrease in Revenue. The Revenue has been decreasing by -1.60% on average per year.
EPS 1Y (TTM)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%

3.2 Future

  • NTCT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.67% yearly.
  • Based on estimates for the next years, NTCT will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y11.38%
EPS Next 2Y7.99%
EPS Next 3Y6.67%
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y3.73%
Revenue Next 3Y3.61%
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.
NTCT Yearly Revenue VS EstimatesNTCT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
NTCT Yearly EPS VS EstimatesNTCT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

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7

4. NTCT Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.08, the valuation of NTCT can be described as correct.
  • Based on the Price/Earnings ratio, NTCT is valued cheaply inside the industry as 91.49% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (27.34), we can say NTCT is valued rather cheaply.
  • NTCT is valuated correctly with a Price/Forward Earnings ratio of 12.59.
  • NTCT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NTCT is cheaper than 97.87% of the companies in the same industry.
  • NTCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.18, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.08
Fwd PE 12.59
NTCT Price Earnings VS Forward Price EarningsNTCT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NTCT is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, NTCT is valued cheaply inside the industry as 93.62% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.51
EV/EBITDA 10.34
NTCT Per share dataNTCT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • NTCT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • NTCT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.15
PEG (5Y)1.88
EPS Next 2Y7.99%
EPS Next 3Y6.67%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NTCT Dividend Analysis

5.1 Amount

  • No dividends for NTCT!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

NTCT Fundamentals: All Metrics, Ratios and Statistics

NETSCOUT SYSTEMS INC

NASDAQ:NTCT (4/14/2026, 8:00:02 PM)

After market: 32.5995 +0.15 (+0.46%)

32.45

-0.2 (-0.61%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners95.73%
Inst Owner Change0.03%
Ins Owners3.67%
Ins Owner Change-2.17%
Market Cap2.34B
Revenue(TTM)861.43M
Net Income(TTM)95.91M
Analysts76
Price Target35 (7.86%)
Short Float %3.41%
Short Ratio3.77
Dividend
Industry RankSector 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)27.85%
Min EPS beat(2)18.6%
Max EPS beat(2)37.11%
EPS beat(4)3
Avg EPS beat(4)17.16%
Min EPS beat(4)-0.04%
Max EPS beat(4)37.11%
EPS beat(8)7
Avg EPS beat(8)28.93%
EPS beat(12)11
Avg EPS beat(12)30.67%
EPS beat(16)15
Avg EPS beat(16)29.29%
Revenue beat(2)2
Avg Revenue beat(2)6.22%
Min Revenue beat(2)5.24%
Max Revenue beat(2)7.2%
Revenue beat(4)4
Avg Revenue beat(4)3.99%
Min Revenue beat(4)1.1%
Max Revenue beat(4)7.2%
Revenue beat(8)6
Avg Revenue beat(8)2.67%
Revenue beat(12)8
Avg Revenue beat(12)1.29%
Revenue beat(16)10
Avg Revenue beat(16)1.57%
PT rev (1m)0%
PT rev (3m)0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 13.08
Fwd PE 12.59
P/S 2.72
P/FCF 8.51
P/OCF 8.26
P/B 1.43
P/tB 6.78
EV/EBITDA 10.34
EPS(TTM)2.48
EY7.64%
EPS(NY)2.58
Fwd EY7.94%
FCF(TTM)3.81
FCFY11.75%
OCF(TTM)3.93
OCFY12.11%
SpS11.93
BVpS22.73
TBVpS4.78
PEG (NY)1.15
PEG (5Y)1.88
Graham Number35.61
Profitability
Industry RankSector Rank
ROA 4.13%
ROE 5.84%
ROCE 5.94%
ROIC 4.69%
ROICexc 6.75%
ROICexgc 864.84%
OM 12.95%
PM (TTM) 11.13%
GM 79.25%
FCFM 31.98%
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-Score8
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 14.38%
Cap/Sales 0.97%
Interest Coverage 281.07
Cash Conversion 167.44%
Profit Quality 287.23%
Current Ratio 1.94
Quick Ratio 1.91
Altman-Z 2.84
F-Score8
WACC9.68%
ROIC/WACC0.48
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)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
EPS Next Y11.38%
EPS Next 2Y7.99%
EPS Next 3Y6.67%
EPS Next 5YN/A
Revenue 1Y (TTM)4.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%
Revenue Next Year4.92%
Revenue Next 2Y3.73%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
EBIT growth 1Y53.8%
EBIT growth 3Y18.01%
EBIT growth 5Y31.51%
EBIT Next Year14.45%
EBIT Next 3Y8.44%
EBIT Next 5YN/A
FCF growth 1Y286.94%
FCF growth 3Y-9.6%
FCF growth 5Y0.57%
OCF growth 1Y263.69%
OCF growth 3Y-9.74%
OCF growth 5Y-0.66%

NETSCOUT SYSTEMS INC / NTCT Fundamental Analysis FAQ

What is the fundamental rating for NTCT stock?

ChartMill assigns a fundamental rating of 5 / 10 to NTCT.


Can you provide the valuation status for NETSCOUT SYSTEMS INC?

ChartMill assigns a valuation rating of 7 / 10 to NETSCOUT SYSTEMS INC (NTCT). This can be considered as Undervalued.


What is the profitability of NTCT stock?

NETSCOUT SYSTEMS INC (NTCT) has a profitability rating of 6 / 10.


How financially healthy is NETSCOUT SYSTEMS INC?

The financial health rating of NETSCOUT SYSTEMS INC (NTCT) is 6 / 10.