27.34 USD
+0.35 (+1.3%)
27.34 USD
0 (0%)
NTCT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While NTCT has a great profitability rating, there are some minor concerns on its financial health. NTCT may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, NTCT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
NTCT had positive earnings in the past year.
NTCT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NTCT reported negative net income in multiple years.
In the past 5 years NTCT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.12%, NTCT is doing good in the industry, outperforming 70.83% of the companies in the same industry.
NTCT's Return On Equity of 5.69% is fine compared to the rest of the industry. NTCT outperforms 66.67% of its industry peers.
NTCT has a better Return On Invested Capital (4.83%) than 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTCT is significantly below the industry average of 12.31%.
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
Looking at the Profit Margin, with a value of 10.38%, NTCT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Operating Margin, with a value of 12.74%, NTCT is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
In the last couple of years the Operating Margin of NTCT has grown nicely.
NTCT has a better Gross Margin (79.21%) than 97.92% of its industry peers.
NTCT's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTCT 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 2.67. 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 2.67 is fine compared to the rest of the industry. NTCT outperforms 62.50% of its industry peers.
NTCT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.51
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.88 indicates that NTCT should not have too much problems paying its short term obligations.
The Current ratio of NTCT (1.88) is comparable to the rest of the industry.
NTCT has a Quick Ratio of 1.84. This is a normal value and indicates that NTCT is financially healthy and should not expect problems in meeting its short term obligations.
NTCT's Quick ratio of 1.84 is fine compared to the rest of the industry. NTCT outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.84 |
3. Growth
3.1 Past
NTCT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.21%, which is quite good.
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.
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)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.
Based on estimates for the next years, NTCT will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 11.30, which indicates a very decent valuation of NTCT.
NTCT's Price/Earnings ratio is rather cheap when compared to the industry. NTCT is cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (26.28), we can say NTCT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.61, which indicates a very decent valuation of NTCT.
Based on the Price/Forward Earnings ratio, NTCT is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, NTCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 81.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NTCT is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
NTCT's 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)1.03
PEG (5Y)1.63
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 | N/A |
27.34
+0.35 (+1.3%)
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 Change3.59%
Market Cap1.97B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (27.1%)
Short Float %3.24%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)9.66%
PT rev (3m)13.13%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)2.93%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)-1.75%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.61 | ||
| P/S | 2.29 | ||
| P/FCF | 7.72 | ||
| P/OCF | 7.5 | ||
| P/B | 1.25 | ||
| P/tB | 7.43 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)2.42
EY8.85%
EPS(NY)2.58
Fwd EY9.43%
FCF(TTM)3.54
FCFY12.96%
OCF(TTM)3.65
OCFY13.33%
SpS11.95
BVpS21.8
TBVpS3.68
PEG (NY)1.03
PEG (5Y)1.63
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 | 2.67 |
F-Score9
WACC9.42%
ROIC/WACC0.51
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.
What is the valuation status of NETSCOUT SYSTEMS INC (NTCT) stock?
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.
What are the PE and PB ratios of NETSCOUT SYSTEMS INC (NTCT) stock?
The Price/Earnings (PE) ratio for NETSCOUT SYSTEMS INC (NTCT) is 11.3 and the Price/Book (PB) ratio is 1.25.
Can you provide the expected EPS growth for NTCT stock?
The Earnings per Share (EPS) of NETSCOUT SYSTEMS INC (NTCT) is expected to grow by 10.92% in the next year.