NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis
NASDAQ:NTCT • US64115T1043
29.79 USD
+1.28 (+4.49%)
At close: Feb 13, 2026
29.79 USD
0 (0%)
After Hours: 2/13/2026, 8:00:01 PM
NTCT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. NTCT has only an average score on both its financial health and profitability. NTCT has a bad growth rate and is valued cheaply. 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.
- 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.
1.2 Ratios
- NTCT's Return On Assets of 4.12% is fine compared to the rest of the industry. NTCT outperforms 70.83% of its industry peers.
- Looking at the Return On Equity, with a value of 5.69%, NTCT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- The Return On Invested Capital of NTCT (4.83%) is better than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NTCT is significantly below the industry average of 11.27%.
- 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's Profit Margin of 10.38% is fine compared to the rest of the industry. NTCT outperforms 79.17% of its industry peers.
- NTCT's Operating Margin of 12.74% is fine compared to the rest of the industry. NTCT outperforms 77.08% of its industry peers.
- In the last couple of years the Operating Margin of NTCT has grown nicely.
- NTCT has a Gross Margin of 79.21%. 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 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.
- 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 2.87. 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.
- NTCT has a better Altman-Z score (2.87) than 64.58% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.52
WACC9.31%
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.
- Looking at the Quick ratio, with a value of 1.84, NTCT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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 10.71%, which is quite good.
- Measured over the past 5 years, NTCT shows a small growth in Earnings Per Share. The EPS has been growing by 6.94% on average per year.
- The Revenue has decreased by -0.82% 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)-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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.01 indicates a correct valuation of NTCT.
- Compared to the rest of the industry, the Price/Earnings ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 89.58% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (26.68), we can say NTCT is valued rather cheaply.
- NTCT is valuated reasonably with a Price/Forward Earnings ratio of 11.56.
- Based on the Price/Forward Earnings ratio, NTCT is valued cheaper than 91.67% of the companies in the same industry.
- NTCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTCT is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
- 95.83% of the companies in the same industry are more expensive than NTCT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.41 | ||
| EV/EBITDA | 9.42 |
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)1.1
PEG (5Y)1.73
EPS Next 2Y7.99%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
- NTCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
29.79
+1.28 (+4.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners94.63%
Inst Owner Change-86.71%
Ins Owners3.68%
Ins Owner Change2.35%
Market Cap2.15B
Revenue(TTM)822.68M
Net Income(TTM)89.58M
Analysts76
Price Target34.24 (14.94%)
Short Float %2.74%
Short Ratio3.93
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.56 | ||
| P/S | 2.49 | ||
| P/FCF | 8.41 | ||
| P/OCF | 8.17 | ||
| P/B | 1.37 | ||
| P/tB | 8.1 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)2.48
EY8.32%
EPS(NY)2.58
Fwd EY8.65%
FCF(TTM)3.54
FCFY11.89%
OCF(TTM)3.64
OCFY12.23%
SpS11.95
BVpS21.79
TBVpS3.68
PEG (NY)1.1
PEG (5Y)1.73
Graham Number34.87
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 | 2.87 |
F-Score9
WACC9.31%
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)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.