26.84 USD
+0.45 (+1.71%)
26.84 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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NTCT may be a bit undervalued, certainly considering the very reasonable score on growth 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.
In multiple years NTCT reported negative net income over the last 5 years.
NTCT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTCT's Return On Assets of 4.12% is fine compared to the rest of the industry. NTCT outperforms 68.75% 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 has a Return On Invested Capital of 4.83%. This is in the better half of the industry: NTCT outperforms 68.75% 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 12.82%.
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
NTCT has a better Profit Margin (10.38%) 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.
Looking at the Gross Margin, with a value of 79.21%, NTCT belongs to the top of the industry, outperforming 97.92% 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
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.
NTCT has about the same amout of shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 2.62 indicates that NTCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.62, NTCT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 | 2.62 |
ROIC/WACC0.52
WACC9.33%
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.
A Quick Ratio of 1.84 indicates that NTCT should not have too much problems paying its short term obligations.
The Quick ratio of NTCT (1.84) is better 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.
The Revenue has grown by 9.60% in the past year. This is quite good.
The Revenue has been decreasing by -1.60% on average over the past years.
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
Based on estimates for the next years, NTCT will show a small growth in Earnings Per Share. The EPS will grow by 5.12% on average per year.
Based on estimates for the next years, NTCT will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y7.77%
EPS Next 2Y6.01%
EPS Next 3Y5.12%
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y3.44%
Revenue Next 3Y3.6%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.09, the valuation of NTCT can be described as reasonable.
NTCT's Price/Earnings ratio is rather cheap when compared to the industry. NTCT is cheaper than 89.58% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.98, NTCT is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.81, the valuation of NTCT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, NTCT is valued cheaper than 93.75% of the companies in the same industry.
NTCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
NTCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTCT is cheaper than 81.25% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTCT is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 7.92 |
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)1.43
PEG (5Y)1.6
EPS Next 2Y6.01%
EPS Next 3Y5.12%
5. Dividend
5.1 Amount
NTCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.84
+0.45 (+1.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.46%
Inst Owner Change9.48%
Ins Owners3.72%
Ins Owner Change5.44%
Market Cap1.93B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (29.47%)
Short Float %3.5%
Short Ratio4.34
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)13.13%
PT rev (3m)16.87%
EPS NQ rev (1m)-3.88%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)-2.56%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 10.81 | ||
| P/S | 2.24 | ||
| P/FCF | 7.54 | ||
| P/OCF | 7.33 | ||
| P/B | 1.23 | ||
| P/tB | 7.26 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)2.42
EY9.02%
EPS(NY)2.48
Fwd EY9.25%
FCF(TTM)3.56
FCFY13.26%
OCF(TTM)3.66
OCFY13.64%
SpS12
BVpS21.89
TBVpS3.7
PEG (NY)1.43
PEG (5Y)1.6
Graham Number34.53
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 | 2.62 |
F-Score9
WACC9.33%
ROIC/WACC0.52
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 Y7.77%
EPS Next 2Y6.01%
EPS Next 3Y5.12%
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 Year4.21%
Revenue Next 2Y3.44%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y158.09%
EBIT growth 3Y18.01%
EBIT growth 5Y31.51%
EBIT Next Year3.21%
EBIT Next 3Y4.75%
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 11.09 and the Price/Book (PB) ratio is 1.23.
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 7.77% in the next year.