27.57 USD
-0.28 (-1.01%)
27.57 USD
0 (0%)
Taking everything into account, NTCT scores 6 out of 10 in our fundamental rating. 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes NTCT very considerable 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.
In multiple years NTCT reported negative net income over the last 5 years.
In the past 5 years NTCT always reported a positive cash flow from operatings.
1.2 Ratios
NTCT's Return On Assets of 4.12% is fine compared to the rest of the industry. NTCT outperforms 72.92% of its industry peers.
The Return On Equity of NTCT (5.69%) is better than 68.75% of its industry peers.
NTCT has a better Return On Invested Capital (4.83%) 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 12.15%.
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
Looking at the Profit Margin, with a value of 10.38%, NTCT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
NTCT has a better Operating Margin (12.74%) than 77.08% of its industry peers.
NTCT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 79.21%, NTCT belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
NTCT's Gross Margin has been stable in the last couple of years.
| 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
NTCT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NTCT has more shares outstanding
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.
2.2 Solvency
NTCT has an Altman-Z score of 2.71. 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's Altman-Z score of 2.71 is fine compared to the rest of the industry. NTCT outperforms 62.50% 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 | 2.71 |
ROIC/WACC0.49
WACC9.78%
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 has a Current ratio (1.88) which is in line with its industry peers.
A Quick Ratio of 1.84 indicates that NTCT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.84, NTCT is doing good in the industry, outperforming 68.75% 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 19.21%, which is quite good.
The Earnings Per Share has been growing slightly by 6.94% on average over the past years.
The Revenue has grown by 9.60% in the past year. This is quite good.
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 6.63% 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
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.
4. Valuation
4.1 Price/Earnings Ratio
NTCT is valuated reasonably with a Price/Earnings ratio of 11.39.
Based on the Price/Earnings ratio, NTCT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (26.84), we can say NTCT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.70, which indicates a very decent valuation of NTCT.
93.75% 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 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.7 |
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.
NTCT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTCT is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 8.47 |
4.3 Compensation for Growth
The 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)1.04
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% |
27.57
-0.28 (-1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.17%
Inst Owner Change8.87%
Ins Owners3.7%
Ins Owner Change1.66%
Market Cap1.99B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (26.04%)
Short Float %3.01%
Short Ratio4.13
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)13.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.88%
EPS NY rev (1m)2.93%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.7 | ||
| P/S | 2.31 | ||
| P/FCF | 7.78 | ||
| P/OCF | 7.56 | ||
| P/B | 1.26 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 8.47 |
EPS(TTM)2.42
EY8.78%
EPS(NY)2.58
Fwd EY9.35%
FCF(TTM)3.54
FCFY12.85%
OCF(TTM)3.65
OCFY13.22%
SpS11.95
BVpS21.8
TBVpS3.68
PEG (NY)1.04
PEG (5Y)1.64
Graham Number34.45
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 | 2.71 |
F-Score9
WACC9.78%
ROIC/WACC0.49
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 Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
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 Year4.81%
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 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 11.39 and the Price/Book (PB) ratio is 1.26.
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 10.92% in the next year.