NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis
NASDAQ:NTCT • US64115T1043
28.29 USD
-1.41 (-4.75%)
At close: Feb 23, 2026
28.29 USD
0 (0%)
After Hours: 2/23/2026, 4:30:02 PM
We assign a fundamental rating of 5 out of 10 to NTCT. NTCT was compared to 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 has a bad growth rate and is valued cheaply. With these ratings, NTCT could be worth investigating further for value investing!.
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.
- NTCT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of NTCT (4.12%) is better than 72.92% 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 68.75% of the companies in the same industry.
- With a decent Return On Invested Capital value of 4.83%, NTCT is doing good in the industry, outperforming 66.67% 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 11.26%.
- 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
- Looking at the Profit Margin, with a value of 10.38%, NTCT is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- NTCT has a Operating Margin of 12.74%. This is in the better half of the industry: NTCT outperforms 77.08% of its industry peers.
- NTCT's Operating Margin has improved in the last couple of years.
- 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.
- The number of shares outstanding for NTCT remains at a similar level compared to 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 2.87 indicates that NTCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- NTCT has a better Altman-Z score (2.87) than 64.58% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.5
WACC9.74%
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.
- Looking at the Quick ratio, with a value of 1.84, NTCT is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
| 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 10.71% over the past year.
- The Earnings Per Share has been growing slightly by 6.94% on average over the past years.
- The Revenue has decreased by -0.82% in the past 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)-0.82%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%
3.2 Future
- The Earnings Per Share is expected to grow by 6.63% on average over the next years.
- Based on estimates for the next years, NTCT will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
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
- 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
- With a Price/Earnings ratio of 11.41, the valuation of NTCT can be described as very 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.
- When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (26.64), we can say NTCT is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.98, which indicates a very decent valuation of NTCT.
- 91.67% of the companies in the same industry are more expensive than NTCT, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of NTCT to the average of the S&P500 Index (27.75), we can say NTCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
- NTCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTCT is cheaper than 83.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NTCT is valued cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 9.38 |
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)1.04
PEG (5Y)1.64
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% |
28.29
-1.41 (-4.75%)
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 Change0.29%
Ins Owners3.68%
Ins Owner Change1.98%
Market Cap2.04B
Revenue(TTM)822.68M
Net Income(TTM)89.58M
Analysts76
Price Target34.24 (21.03%)
Short Float %2.72%
Short Ratio3.76
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)0%
PT rev (3m)-1.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.98 | ||
| P/S | 2.37 | ||
| P/FCF | 7.99 | ||
| P/OCF | 7.76 | ||
| P/B | 1.3 | ||
| P/tB | 7.69 | ||
| EV/EBITDA | 9.38 |
EPS(TTM)2.48
EY8.77%
EPS(NY)2.58
Fwd EY9.11%
FCF(TTM)3.54
FCFY12.52%
OCF(TTM)3.64
OCFY12.88%
SpS11.95
BVpS21.79
TBVpS3.68
PEG (NY)1.04
PEG (5Y)1.64
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
WACC9.74%
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)-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.