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NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:NTCT - US64115T1043 - Common Stock

27.21 USD
-0.1 (-0.37%)
Last: 12/3/2025, 8:00:02 PM
27.24 USD
+0.03 (+0.11%)
After Hours: 12/3/2025, 8:00:02 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to NTCT. NTCT was compared to 48 industry peers in the Communications Equipment industry. While NTCT has a great profitability rating, there are some minor concerns on its financial health. NTCT is valued quite cheap, while showing a decent growth score. This is a good combination! This makes NTCT very considerable for value investing!


Dividend Valuation Growth Profitability Health

7

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M

1.2 Ratios

NTCT has a better Return On Assets (4.12%) than 68.75% of its industry peers.
The Return On Equity of NTCT (5.69%) is better than 66.67% of its industry peers.
NTCT has a Return On Invested Capital of 4.83%. This is in the better half of the industry: NTCT outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTCT is significantly below the industry average of 12.32%.
The 3 year average ROIC (2.83%) for NTCT is below the current ROIC(4.83%), indicating increased profibility in the last year.
Industry RankSector 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%
NTCT Yearly ROA, ROE, ROICNTCT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20

1.3 Margins

NTCT has a Profit Margin of 10.38%. This is amongst the best in the industry. NTCT outperforms 83.33% of its industry peers.
The Operating Margin of NTCT (12.74%) is better than 77.08% of its industry peers.
In the last couple of years the Operating Margin of NTCT has grown nicely.
The Gross Margin of NTCT (79.21%) is better than 97.92% 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 12.74%
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%
NTCT Yearly Profit, Operating, Gross MarginsNTCT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTCT 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 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

NTCT has an Altman-Z score of 2.69. 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 2.69, NTCT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 2.69
ROIC/WACC0.52
WACC9.23%
NTCT Yearly LT Debt VS Equity VS FCFNTCT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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 of 1.88. This is comparable 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.
NTCT has a Quick ratio of 1.84. This is in the better half of the industry: NTCT outperforms 68.75% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.84
NTCT Yearly Current Assets VS Current LiabilitesNTCT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

4

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.
NTCT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.60%.
The Revenue has been decreasing by -1.60% on average over the past years.
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.
Based on estimates for the next years, NTCT will show a small growth in Revenue. The Revenue will grow by 3.78% on average per year.
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.
NTCT Yearly Revenue VS EstimatesNTCT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.24, 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 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 26.37.
Based on the Price/Forward Earnings ratio of 10.96, the valuation of NTCT can be described as reasonable.
NTCT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NTCT is cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NTCT to the average of the S&P500 Index (36.20), we can say NTCT is valued rather cheaply.
Industry RankSector Rank
PE 11.24
Fwd PE 10.96
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

81.25% of the companies in the same industry are more expensive than NTCT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 95.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.68
EV/EBITDA 8.36
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)1.45
PEG (5Y)1.62
EPS Next 2Y6.01%
EPS Next 3Y6.27%

0

5. Dividend

5.1 Amount

No dividends for NTCT!.
Industry RankSector Rank
Dividend Yield N/A

NETSCOUT SYSTEMS INC

NASDAQ:NTCT (12/3/2025, 8:00:02 PM)

After market: 27.24 +0.03 (+0.11%)

27.21

-0.1 (-0.37%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)01-28 2026-01-28/bmo
Inst Owners92.46%
Inst Owner Change8.86%
Ins Owners3.72%
Ins Owner Change5.67%
Market Cap1.96B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (27.71%)
Short Float %3.24%
Short Ratio4.38
Dividend
Industry RankSector 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 RankSector Rank
PE 11.24
Fwd PE 10.96
P/S 2.28
P/FCF 7.68
P/OCF 7.46
P/B 1.25
P/tB 7.39
EV/EBITDA 8.36
EPS(TTM)2.42
EY8.89%
EPS(NY)2.48
Fwd EY9.13%
FCF(TTM)3.54
FCFY13.02%
OCF(TTM)3.65
OCFY13.4%
SpS11.95
BVpS21.8
TBVpS3.68
PEG (NY)1.45
PEG (5Y)1.62
Graham Number34.45
Profitability
Industry RankSector 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 RankSector 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 2.69
F-Score9
WACC9.23%
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 11.24 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.