26.91 USD
-0.29 (-1.07%)
26.91 USD
0 (0%)
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 scores excellent on profitability, but 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!
1. Profitability
1.1 Basic Checks
In the past year NTCT was profitable.
In the past year NTCT had a positive cash flow from operations.
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
NTCT has a Return On Assets of 4.12%. This is in the better half of the industry: NTCT outperforms 72.92% of its industry peers.
NTCT has a Return On Equity of 5.69%. This is in the better half of the industry: NTCT outperforms 68.75% of its industry peers.
The Return On Invested Capital of NTCT (4.83%) is better than 66.67% of its industry peers.
NTCT had an Average Return On Invested Capital over the past 3 years of 2.83%. This 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
With an excellent Profit Margin value of 10.38%, NTCT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Operating Margin of NTCT (12.74%) is better than 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
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.
The number of shares outstanding for NTCT remains at a similar level compared to 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
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 Altman-Z score of 2.67. This is in the better half of the industry: NTCT outperforms 62.50% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.51
WACC9.42%
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.
The Current ratio of NTCT (1.88) is comparable to the rest of the industry.
NTCT has a Quick Ratio of 1.84. 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 (1.84) is better than 68.75% of its industry peers.
| 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 19.21% 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.
NTCT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.60%.
NTCT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
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
The Earnings Per Share is expected to grow by 6.63% on average over the next years.
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.
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
The Price/Earnings ratio is 11.12, which indicates a very decent valuation of NTCT.
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 is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
NTCT is valuated reasonably with a Price/Forward Earnings ratio of 10.44.
Based on the Price/Forward Earnings ratio, NTCT is valued cheaper than 95.83% of the companies in the same industry.
NTCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 83.33% of the companies listed in the same industry.
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 | 7.59 | ||
| EV/EBITDA | 8.19 |
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)1.02
PEG (5Y)1.6
EPS Next 2Y7.99%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
No dividends for NTCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
26.91
-0.29 (-1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.63%
Inst Owner Change-0.14%
Ins Owners3.68%
Ins Owner Change1.66%
Market Cap1.94B
Revenue(TTM)862.77M
Net Income(TTM)89.58M
Analysts76
Price Target34.75 (29.13%)
Short Float %2.59%
Short Ratio3.34
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)0%
EPS NY rev (3m)3.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.44 | ||
| P/S | 2.25 | ||
| P/FCF | 7.59 | ||
| P/OCF | 7.38 | ||
| P/B | 1.23 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)2.42
EY8.99%
EPS(NY)2.58
Fwd EY9.58%
FCF(TTM)3.54
FCFY13.17%
OCF(TTM)3.65
OCFY13.55%
SpS11.95
BVpS21.8
TBVpS3.68
PEG (NY)1.02
PEG (5Y)1.6
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 | 2.67 |
F-Score9
WACC9.42%
ROIC/WACC0.51
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.
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.