Balancing Dividends and Fundamentals: The Case of NASDAQ:NTAP.

Take a closer look at NETAPP INC (NASDAQ:NTAP), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:NTAP excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Assessing Dividend Metrics for NASDAQ:NTAP

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NASDAQ:NTAP earns a 7 out of 10:

• NTAP's Dividend Yield is rather good when compared to the industry average which is at 2.94. NTAP pays more dividend than 87.88% of the companies in the same industry.
• The dividend of NTAP is nicely growing with an annual growth rate of 19.98%!
• NTAP has been paying a dividend for at least 10 years, so it has a reliable track record.
• NTAP has not decreased their dividend for at least 10 years, which is a reliable track record.
• NTAP pays out 35.40% of its income as dividend. This is a sustainable payout ratio.

What does the Health looks like for NASDAQ:NTAP

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NTAP scores a 5 out of 10:

• With a decent Altman-Z score value of 2.51, NTAP is doing good in the industry, outperforming 63.64% of the companies in the same industry.
• The Debt to FCF ratio of NTAP is 2.23, which is a good value as it means it would take NTAP, 2.23 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of NTAP (2.23) is better than 78.79% of its industry peers.
• Even though the debt/equity ratio score it not favorable for NTAP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

How do we evaluate the Profitability for NASDAQ:NTAP?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NTAP, the assigned 9 is a significant indicator of profitability:

• NTAP has a Return On Assets of 13.04%. This is amongst the best in the industry. NTAP outperforms 90.91% of its industry peers.
• NTAP has a better Return On Equity (138.49%) than 96.97% of its industry peers.
• With an excellent Return On Invested Capital value of 15.53%, NTAP belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
• The last Return On Invested Capital (15.53%) for NTAP is above the 3 year average (15.40%), which is a sign of increasing profitability.
• NTAP has a better Profit Margin (19.49%) than 93.94% of its industry peers.
• In the last couple of years the Profit Margin of NTAP has grown nicely.
• NTAP has a better Operating Margin (17.62%) than 90.91% of its industry peers.
• In the last couple of years the Operating Margin of NTAP has grown nicely.
• NTAP has a better Gross Margin (67.06%) than 87.88% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of NTAP contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.