NETSCOUT SYSTEMS INC (NTCT) Fundamental Analysis & Valuation

NASDAQ:NTCT • US64115T1043

Current stock price

32.16 USD
-0.59 (-1.8%)
At close:
32.16 USD
0 (0%)
After Hours:

This NTCT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NTCT Profitability Analysis

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.
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

  • The Return On Assets of NTCT (4.13%) is better than 72.34% of its industry peers.
  • The Return On Equity of NTCT (5.84%) is better than 68.09% of its industry peers.
  • NTCT has a better Return On Invested Capital (4.69%) than 68.09% 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 10.41%.
  • The 3 year average ROIC (2.83%) for NTCT is below the current ROIC(4.69%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 11.13%, NTCT is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
  • NTCT's Operating Margin of 12.95% is fine compared to the rest of the industry. NTCT outperforms 78.72% of its industry peers.
  • NTCT's Operating Margin has improved in the last couple of years.
  • The Gross Margin of NTCT (79.25%) is better than 95.74% 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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6

2. NTCT Health Analysis

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.
  • 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 2.81 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 2.81. This is comparable to the rest of the industry: NTCT outperforms 59.57% 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 2.81
ROIC/WACC0.48
WACC9.7%
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.
  • With a Current ratio value of 1.94, NTCT perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
  • NTCT has a Quick Ratio of 1.91. 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 1.91 is in line compared to the rest of the industry. NTCT outperforms 55.32% 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. NTCT Growth Analysis

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.
  • Looking at the last year, NTCT shows a small growth in Revenue. The Revenue has grown by 4.91% 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)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 6.67% on average per year.
  • The Revenue is expected to grow by 3.61% on average over the next years.
EPS Next Y11.38%
EPS Next 2Y7.99%
EPS Next 3Y6.67%
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y3.73%
Revenue Next 3Y3.61%
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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7

4. NTCT Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.97, the valuation of NTCT can be described as correct.
  • 91.49% 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 (26.86), we can say NTCT is valued rather cheaply.
  • A Price/Forward Earnings ratio of 12.48 indicates a correct valuation of NTCT.
  • 97.87% of the companies in the same industry are more expensive than NTCT, based on the Price/Forward Earnings ratio.
  • NTCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.97
Fwd PE 12.48
NTCT Price Earnings VS Forward Price EarningsNTCT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 78.72% 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 93.62% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.43
EV/EBITDA 10.13
NTCT Per share dataNTCT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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)1.14
PEG (5Y)1.87
EPS Next 2Y7.99%
EPS Next 3Y6.67%

More info and screens

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

0

5. NTCT Dividend Analysis

5.1 Amount

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

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NTCT Fundamentals: All Metrics, Ratios and Statistics

NETSCOUT SYSTEMS INC

NASDAQ:NTCT (4/10/2026, 8:00:01 PM)

After market: 32.16 0 (0%)

32.16

-0.59 (-1.8%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners95.73%
Inst Owner Change0.03%
Ins Owners3.67%
Ins Owner Change-2.17%
Market Cap2.32B
Revenue(TTM)861.43M
Net Income(TTM)95.91M
Analysts76
Price Target35 (8.83%)
Short Float %3.01%
Short Ratio3.47
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)0%
PT rev (3m)0.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 12.97
Fwd PE 12.48
P/S 2.7
P/FCF 8.43
P/OCF 8.18
P/B 1.42
P/tB 6.72
EV/EBITDA 10.13
EPS(TTM)2.48
EY7.71%
EPS(NY)2.58
Fwd EY8.01%
FCF(TTM)3.81
FCFY11.86%
OCF(TTM)3.93
OCFY12.22%
SpS11.93
BVpS22.73
TBVpS4.78
PEG (NY)1.14
PEG (5Y)1.87
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 2.81
F-Score8
WACC9.7%
ROIC/WACC0.48
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 Y11.38%
EPS Next 2Y7.99%
EPS Next 3Y6.67%
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 Fundamental Analysis 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 7 / 10 to NETSCOUT SYSTEMS INC (NTCT). This can be considered as Undervalued.


What is the profitability of NTCT stock?

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.