NETSCOUT SYSTEMS INC (NTCT) Fundamental Analysis & Valuation
NASDAQ:NTCT • US64115T1043
30.06 USD
-0.27 (-0.89%)
At close: Mar 12, 2026
30.06 USD
0 (0%)
After Hours: 3/12/2026, 8:01:29 PM
This NTCT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to NTCT. NTCT was compared to 48 industry peers in the Communications Equipment industry. NTCT has an excellent profitability rating, but there are some minor concerns on its financial health. NTCT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make NTCT suitable for value investing!
1. NTCT Profitability Analysis
1.1 Basic Checks
- NTCT had positive earnings in the past year.
- In the past year NTCT had a positive cash flow from operations.
- In multiple years NTCT reported negative net income over the last 5 years.
- Each year in the past 5 years NTCT had a positive operating cash flow.
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.
- Looking at the Return On Equity, with a value of 5.84%, NTCT is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.69%, NTCT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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 Rank | Sector 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%
1.3 Margins
- NTCT's Profit Margin of 11.13% is fine compared to the rest of the industry. NTCT outperforms 79.17% of its industry peers.
- NTCT has a better Operating Margin (12.95%) than 81.25% of its industry peers.
- In the last couple of years the Operating Margin of NTCT has grown nicely.
- The Gross Margin of NTCT (79.25%) is better than 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 | 12.95% | ||
| 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%
2. NTCT Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTCT 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.
- 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
- An Altman-Z score of 2.70 indicates that NTCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.70, NTCT is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
- 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 | 2.7 |
ROIC/WACC0.48
WACC9.77%
2.3 Liquidity
- A Current Ratio of 1.94 indicates that NTCT should not have too much problems paying its short term obligations.
- NTCT has a Current ratio (1.94) which is in line with its industry peers.
- A Quick Ratio of 1.91 indicates that NTCT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.91, NTCT is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.91 |
3. NTCT Growth Analysis
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.
- NTCT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.91%.
- 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
- The Earnings Per Share is expected to grow by 6.67% on average over the next years.
- 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.
4. NTCT Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.12 indicates a correct valuation of NTCT.
- 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 (25.71), we can say NTCT is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.66 indicates a reasonable valuation of NTCT.
- NTCT's Price/Forward Earnings ratio is rather cheap when compared to the industry. NTCT is cheaper than 95.83% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, NTCT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTCT is valued 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.88 | ||
| EV/EBITDA | 9.35 |
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)1.06
PEG (5Y)1.75
EPS Next 2Y7.99%
EPS Next 3Y6.67%
5. NTCT Dividend Analysis
5.1 Amount
- No dividends for NTCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NTCT Fundamentals: All Metrics, Ratios and Statistics
30.06
-0.27 (-0.89%)
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 Owners95.41%
Inst Owner Change0.8%
Ins Owners3.67%
Ins Owner Change2.3%
Market Cap2.17B
Revenue(TTM)861.43M
Net Income(TTM)95.91M
Analysts76
Price Target35 (16.43%)
Short Float %2.84%
Short Ratio3.7
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)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)-26.34%
EPS NQ rev (3m)-26.34%
EPS NY rev (1m)0.42%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)-7.54%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 11.66 | ||
| P/S | 2.52 | ||
| P/FCF | 7.88 | ||
| P/OCF | 7.65 | ||
| P/B | 1.32 | ||
| P/tB | 6.29 | ||
| EV/EBITDA | 9.35 |
EPS(TTM)2.48
EY8.25%
EPS(NY)2.58
Fwd EY8.57%
FCF(TTM)3.81
FCFY12.69%
OCF(TTM)3.93
OCFY13.07%
SpS11.93
BVpS22.73
TBVpS4.78
PEG (NY)1.06
PEG (5Y)1.75
Graham Number35.61
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.7 |
F-Score8
WACC9.77%
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 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.