27.31 USD
+0.53 (+1.98%)
27.31 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. NTCT has an excellent profitability rating, but there are some minor concerns on its financial health. NTCT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make NTCT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
NTCT had positive earnings in the past year.
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 has a better Return On Assets (4.12%) than 68.75% of its industry peers.
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.
With a decent Return On Invested Capital value of 4.83%, NTCT is doing good in the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NTCT is significantly below the industry average of 12.32%.
The last Return On Invested Capital (4.83%) for NTCT is above the 3 year average (2.83%), which is a sign of increasing profitability.
| 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.
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.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTCT 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.
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 2.66. 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.
With a decent Altman-Z score value of 2.66, 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 | 2.66 |
ROIC/WACC0.52
WACC9.22%
2.3 Liquidity
NTCT has a Current Ratio of 1.88. 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 Current ratio of 1.88 is in line compared to the rest of the industry. NTCT outperforms 43.75% of its industry peers.
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
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.
The Revenue has grown by 9.60% in the past year. This is quite good.
NTCT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
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
NTCT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.27% yearly.
The Revenue is expected to grow by 3.78% on average over the next years.
EPS Next Y7.77%
EPS Next 2Y6.01%
EPS Next 3Y6.27%
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y3.44%
Revenue Next 3Y3.78%
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.
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
NTCT is valuated reasonably with a Price/Earnings ratio of 11.29.
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.
NTCT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 11.00, which indicates a very decent valuation of NTCT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 93.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.22. NTCT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTCT is valued cheaper than 81.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 97.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 8.14 |
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)1.45
PEG (5Y)1.63
EPS Next 2Y6.01%
EPS Next 3Y6.27%
5. Dividend
5.1 Amount
No dividends for NTCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.31
+0.53 (+1.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.46%
Inst Owner Change8.86%
Ins Owners3.72%
Ins Owner Change5.67%
Market Cap1.97B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (27.24%)
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)13.13%
PT rev (3m)16.87%
EPS NQ rev (1m)-3.88%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)0%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)-2.56%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 11 | ||
| P/S | 2.29 | ||
| P/FCF | 7.71 | ||
| P/OCF | 7.49 | ||
| P/B | 1.25 | ||
| P/tB | 7.42 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)2.42
EY8.86%
EPS(NY)2.48
Fwd EY9.09%
FCF(TTM)3.54
FCFY12.98%
OCF(TTM)3.65
OCFY13.35%
SpS11.95
BVpS21.8
TBVpS3.68
PEG (NY)1.45
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 | 2.66 |
F-Score9
WACC9.22%
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 3Y6.27%
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 3Y3.78%
Revenue Next 5YN/A
EBIT growth 1Y158.09%
EBIT growth 3Y18.01%
EBIT growth 5Y31.51%
EBIT Next Year3.21%
EBIT Next 3Y5.8%
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 11.29 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 7.77% in the next year.