NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis

NASDAQ:NTCT • US64115T1043

29.44 USD
+0.93 (+3.26%)
Last: Feb 13, 2026, 11:59 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall NTCT gets a fundamental rating of 5 out of 10. We evaluated NTCT against 48 industry peers in the Communications Equipment industry. Both the profitability and the financial health of NTCT get a neutral evaluation. Nothing too spectacular is happening here. NTCT has a bad growth rate and is valued cheaply. With these ratings, NTCT could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

6

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.
  • NTCT had a positive operating cash flow in each of the past 5 years.
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

  • NTCT has a better Return On Assets (4.12%) than 70.83% of its industry peers.
  • NTCT has a Return On Equity of 5.69%. This is in the better half of the industry: NTCT outperforms 66.67% of its industry peers.
  • NTCT's Return On Invested Capital of 4.83% is fine compared to the rest of the industry. NTCT outperforms 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 11.29%.
  • The 3 year average ROIC (2.83%) for NTCT is below the current ROIC(4.83%), indicating increased profibility in the last year.
Industry RankSector 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%
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 (10.38%) is better than 79.17% 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.
  • Looking at the Gross Margin, with a value of 79.21%, NTCT belongs to the top 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 RankSector 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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • NTCT has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, NTCT has about the same amount of shares outstanding.
  • 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.
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

  • An Altman-Z score of 2.78 indicates that NTCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • NTCT has a Altman-Z score of 2.78. This is in the better half 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.78
ROIC/WACC0.51
WACC9.46%
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

  • 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 (1.88) which 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 has a Quick ratio of 1.84. This is in the better half of the industry: NTCT outperforms 68.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.84
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

3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 10.71% 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.
  • The Revenue has decreased by -0.82% 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)-0.82%
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 6.63% yearly.
  • The Revenue is expected to grow by 3.53% on average over the next years.
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.
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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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • NTCT is valuated reasonably with a Price/Earnings ratio of 11.87.
  • 91.67% of the companies in the same industry are more expensive than NTCT, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (27.67), we can say NTCT is valued rather cheaply.
  • NTCT is valuated reasonably with a Price/Forward Earnings ratio of 11.42.
  • NTCT's Price/Forward 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/Forward Earnings ratio of NTCT to the average of the S&P500 Index (27.69), we can say NTCT is valued rather cheaply.
Industry RankSector Rank
PE 11.87
Fwd PE 11.42
NTCT Price Earnings VS Forward Price EarningsNTCT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, NTCT is valued cheaper than 83.33% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NTCT is valued cheaper than 95.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.31
EV/EBITDA 8.88
NTCT Per share dataNTCT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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)1.09
PEG (5Y)1.71
EPS Next 2Y7.99%
EPS Next 3Y6.63%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

NETSCOUT SYSTEMS INC

NASDAQ:NTCT (2/13/2026, 11:59:51 AM)

29.44

+0.93 (+3.26%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners94.63%
Inst Owner Change-0.27%
Ins Owners3.68%
Ins Owner Change2.08%
Market Cap2.13B
Revenue(TTM)822.68M
Net Income(TTM)89.58M
Analysts76
Price Target34.24 (16.3%)
Short Float %2.74%
Short Ratio3.93
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)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)-1.47%
PT rev (3m)8.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 11.87
Fwd PE 11.42
P/S 2.46
P/FCF 8.31
P/OCF 8.08
P/B 1.35
P/tB 8
EV/EBITDA 8.88
EPS(TTM)2.48
EY8.42%
EPS(NY)2.58
Fwd EY8.75%
FCF(TTM)3.54
FCFY12.03%
OCF(TTM)3.64
OCFY12.38%
SpS11.95
BVpS21.79
TBVpS3.68
PEG (NY)1.09
PEG (5Y)1.71
Graham Number34.87
Profitability
Industry RankSector 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 RankSector 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 2.78
F-Score9
WACC9.46%
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)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%
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 5 / 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 6 / 10.


How financially healthy is NETSCOUT SYSTEMS INC?

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