NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis
NASDAQ:NTCT • US64115T1043
29.36 USD
-0.43 (-1.44%)
Last: Feb 17, 2026, 03:40 PM
We assign a fundamental rating of 5 out of 10 to NTCT. NTCT was compared to 48 industry peers in the Communications Equipment industry. NTCT has only an average score on both its financial health and profitability. NTCT is cheap, but on the other hand it scores bad 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.
- Each year in the past 5 years NTCT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.12%, NTCT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
- NTCT's Return On Equity of 5.69% is fine compared to the rest of the industry. NTCT outperforms 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 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NTCT is significantly below the industry average of 11.27%.
- 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
- The Profit Margin of NTCT (10.38%) is better than 79.17% of its industry peers.
- With a decent Operating Margin value of 12.74%, NTCT is doing good in the industry, outperforming 77.08% of the companies in the same industry.
- 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.
- NTCT has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NTCT has about the same amount of shares outstanding.
- 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 2.87. 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 2.87, NTCT is doing good in the industry, outperforming 64.58% 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 | 2.87 |
ROIC/WACC0.51
WACC9.46%
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.
- Looking at the Quick ratio, with a value of 1.84, NTCT is in the better half of the industry, outperforming 66.67% 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 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.
- Looking at the last year, NTCT shows a decrease in Revenue. The Revenue has decreased by -0.82% in the last year.
- The Revenue has been decreasing by -1.60% on average over the past years.
EPS 1Y (TTM)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
Revenue 1Y (TTM)-0.82%
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 6.63% 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
- Based on the Price/Earnings ratio of 11.84, the valuation of NTCT can be described as reasonable.
- Based on the Price/Earnings ratio, NTCT is valued cheaper than 89.58% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.19, NTCT is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.39, which indicates a very decent valuation of NTCT.
- 91.67% of the companies in the same industry are more expensive than NTCT, based on the Price/Forward Earnings ratio.
- NTCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.39 |
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.
- 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 | 8.29 | ||
| EV/EBITDA | 9.42 |
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)1.08
PEG (5Y)1.71
EPS Next 2Y7.99%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
- No dividends for NTCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:NTCT (2/17/2026, 3:40:53 PM)
29.36
-0.43 (-1.44%)
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 Owners94.63%
Inst Owner Change0.84%
Ins Owners3.68%
Ins Owner Change2.35%
Market Cap2.12B
Revenue(TTM)822.68M
Net Income(TTM)89.58M
Analysts76
Price Target34.24 (16.62%)
Short Float %2.72%
Short Ratio3.76
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)-1.47%
PT rev (3m)8.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 11.39 | ||
| P/S | 2.46 | ||
| P/FCF | 8.29 | ||
| P/OCF | 8.06 | ||
| P/B | 1.35 | ||
| P/tB | 7.98 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)2.48
EY8.45%
EPS(NY)2.58
Fwd EY8.78%
FCF(TTM)3.54
FCFY12.06%
OCF(TTM)3.64
OCFY12.41%
SpS11.95
BVpS21.79
TBVpS3.68
PEG (NY)1.08
PEG (5Y)1.71
Graham Number34.87
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 | 2.87 |
F-Score9
WACC9.46%
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)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%
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 5 / 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 6 / 10.
How financially healthy is NETSCOUT SYSTEMS INC?
The financial health rating of NETSCOUT SYSTEMS INC (NTCT) is 6 / 10.