NETSCOUT SYSTEMS INC (NTCT) Fundamental Analysis & Valuation

NASDAQ:NTCT • US64115T1043

Current stock price

29.98 USD
-0.08 (-0.27%)
At close:
29.98 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.

7

1. NTCT Profitability Analysis

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.
  • In the past 5 years NTCT always reported a positive cash flow from operatings.
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

  • With a decent Return On Assets value of 4.13%, NTCT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • NTCT has a better Return On Equity (5.84%) than 68.75% of its industry peers.
  • NTCT has a Return On Invested Capital of 4.69%. This is in the better half of the industry: NTCT outperforms 70.83% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NTCT is significantly below the industry average of 10.40%.
  • 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

  • The Profit Margin of NTCT (11.13%) is better than 79.17% of its industry peers.
  • NTCT's Operating Margin of 12.95% is amongst the best of the industry. NTCT outperforms 81.25% of its industry peers.
  • NTCT's Operating Margin has improved in the last couple of years.
  • NTCT's Gross Margin of 79.25% is amongst the best of the industry. NTCT outperforms 95.83% of its industry peers.
  • NTCT's Gross Margin has been stable in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
  • 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

  • NTCT has an Altman-Z score of 2.67. 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 (2.67) than 60.42% 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 2.67
ROIC/WACC0.48
WACC9.82%
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

  • A Current Ratio of 1.94 indicates that NTCT should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.94, NTCT perfoms like the industry average, outperforming 43.75% 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.
  • The Quick ratio of NTCT (1.91) is better than 62.50% 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.
  • 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 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

  • NTCT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.67% yearly.
  • 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

  • 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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8

4. NTCT Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.09 indicates a correct valuation of NTCT.
  • Based on the Price/Earnings ratio, NTCT is valued cheaper than 91.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, NTCT is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 11.63, 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 95.83% of the companies listed in the same industry.
  • NTCT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.09
Fwd PE 11.63
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

  • NTCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTCT is cheaper than 81.25% of the companies in the same industry.
  • 97.92% of the companies in the same industry are more expensive than NTCT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.86
EV/EBITDA 9.2
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.
  • The decent profitability rating of NTCT may justify a higher PE ratio.
PEG (NY)1.06
PEG (5Y)1.74
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 (3/13/2026, 8:00:02 PM)

After market: 29.98 0 (0%)

29.98

-0.08 (-0.27%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners95.41%
Inst Owner Change0.8%
Ins Owners3.67%
Ins Owner Change-2.11%
Market Cap2.17B
Revenue(TTM)861.43M
Net Income(TTM)95.91M
Analysts76
Price Target35 (16.74%)
Short Float %2.84%
Short Ratio3.7
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)0%
EPS NQ rev (3m)-26.34%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.11%
Valuation
Industry RankSector Rank
PE 12.09
Fwd PE 11.63
P/S 2.51
P/FCF 7.86
P/OCF 7.63
P/B 1.32
P/tB 6.27
EV/EBITDA 9.2
EPS(TTM)2.48
EY8.27%
EPS(NY)2.58
Fwd EY8.6%
FCF(TTM)3.81
FCFY12.72%
OCF(TTM)3.93
OCFY13.11%
SpS11.93
BVpS22.73
TBVpS4.78
PEG (NY)1.06
PEG (5Y)1.74
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 2.67
F-Score8
WACC9.82%
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 6 / 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 7 / 10.


How financially healthy is NETSCOUT SYSTEMS INC?

The financial health rating of NETSCOUT SYSTEMS INC (NTCT) is 6 / 10.