NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis

NASDAQ:NTCT • US64115T1043

29.21 USD
-0.12 (-0.41%)
At close: Feb 27, 2026
29.21 USD
0 (0%)
After Hours: 2/27/2026, 8:23:18 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

NTCT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
  • 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

  • NTCT has a Return On Assets of 4.13%. This is in the better half of the industry: NTCT outperforms 75.00% of its industry peers.
  • The Return On Equity of NTCT (5.84%) is better than 70.83% of its industry peers.
  • NTCT has a better Return On Invested Capital (4.69%) than 66.67% 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 10.81%.
  • 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

  • NTCT has a better Profit Margin (11.13%) than 79.17% of its industry peers.
  • The Operating Margin of NTCT (12.95%) is better than 79.17% of its industry peers.
  • In the last couple of years the Operating Margin of NTCT has grown nicely.
  • NTCT has a Gross Margin of 79.25%. This is amongst the best in the industry. NTCT outperforms 95.83% 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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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.
  • 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.
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 2.62 indicates that NTCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of NTCT (2.62) is better 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 2.62
ROIC/WACC0.5
WACC9.42%
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.
  • NTCT has a Current ratio (1.94) which is in line with its industry peers.
  • 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 fine compared to the rest of the industry. NTCT outperforms 64.58% 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. 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 been growing slightly by 4.91% in the past year.
  • NTCT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
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

  • Based on estimates for the next years, NTCT will show a small growth in Earnings Per Share. The EPS will grow by 6.63% on average per year.
  • NTCT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • A Price/Earnings ratio of 11.78 indicates a reasonable valuation of NTCT.
  • 89.58% of the companies in the same industry are more expensive than NTCT, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, NTCT is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 11.33, the valuation of NTCT can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 89.58% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. NTCT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.78
Fwd PE 11.33
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

  • 83.33% of the companies in the same industry are more expensive than NTCT, based on the Enterprise Value to EBITDA ratio.
  • NTCT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTCT is cheaper than 97.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.66
EV/EBITDA 8.87
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.
  • NTCT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)1.7
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

  • NTCT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

NETSCOUT SYSTEMS INC

NASDAQ:NTCT (2/27/2026, 8:23:18 PM)

After market: 29.21 0 (0%)

29.21

-0.12 (-0.41%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners94.63%
Inst Owner Change0.83%
Ins Owners3.68%
Ins Owner Change2.3%
Market Cap2.11B
Revenue(TTM)861.43M
Net Income(TTM)95.91M
Analysts76
Price Target35 (19.82%)
Short Float %2.72%
Short Ratio3.76
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)2.23%
PT rev (3m)0.73%
EPS NQ rev (1m)-26.34%
EPS NQ rev (3m)-26.34%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)-7.54%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 11.78
Fwd PE 11.33
P/S 2.45
P/FCF 7.66
P/OCF 7.43
P/B 1.29
P/tB 6.11
EV/EBITDA 8.87
EPS(TTM)2.48
EY8.49%
EPS(NY)2.58
Fwd EY8.82%
FCF(TTM)3.81
FCFY13.06%
OCF(TTM)3.93
OCFY13.45%
SpS11.93
BVpS22.73
TBVpS4.78
PEG (NY)1.08
PEG (5Y)1.7
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 2.62
F-Score8
WACC9.42%
ROIC/WACC0.5
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)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 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.