NORTONLIFELOCK INC (NLOK) Fundamental Analysis & Valuation

NASDAQ:NLOK • US6687711084

Current stock price

21.66 USD
-0.5 (-2.26%)
At close:
21.66 USD
0 (0%)
After Hours:

This NLOK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. NLOK Profitability Analysis

1.1 Basic Checks

  • In the past year NLOK was profitable.
  • In the past year NLOK had a positive cash flow from operations.
NLOK Yearly Net Income VS EBIT VS OCF VS FCFNLOK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

1.2 Ratios

Industry RankSector Rank
ROA 3.72%
ROE 34.81%
ROIC 5.9%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NLOK Yearly ROA, ROE, ROICNLOK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10K 20K 30K

1.3 Margins

  • NLOK's Profit Margin has improved in the last couple of years.
  • In the last couple of years the Operating Margin of NLOK has grown nicely.
Industry RankSector Rank
OM 33.52%
PM (TTM) 20.57%
GM N/A
OM growth 3Y33.91%
OM growth 5Y53.81%
PM growth 3Y187.2%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
NLOK Yearly Profit, Operating, Gross MarginsNLOK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 50 100 150

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0

2. NLOK Health Analysis

2.1 Basic Checks

  • NLOK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • NLOK has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for NLOK has been reduced compared to a year ago.
NLOK Yearly Shares OutstandingNLOK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
NLOK Yearly Total Debt VS Total AssetsNLOK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.2 Solvency

  • NLOK has an Altman-Z score of 0.75. This is a bad value and indicates that NLOK is not financially healthy and even has some risk of bankruptcy.
  • NLOK has a debt to FCF ratio of 12.98. This is a negative value and a sign of low solvency as NLOK would need 12.98 years to pay back of all of its debts.
  • A Debt/Equity ratio of 5.82 is on the high side and indicates that NLOK has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 5.82
Debt/FCF 12.98
Altman-Z 0.75
ROIC/WACC0.8
WACC7.39%
NLOK Yearly LT Debt VS Equity VS FCFNLOK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B

2.3 Liquidity

  • NLOK has a Current Ratio of 0.57. This is a bad value and indicates that NLOK is not financially healthy enough and could expect problems in meeting its short term obligations.
  • A Quick Ratio of 0.57 indicates that NLOK may have some problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 0.57
Quick Ratio 0.57
NLOK Yearly Current Assets VS Current LiabilitesNLOK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NLOK Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.43% over the past year.
  • Measured over the past years, NLOK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.02% on average per year.
  • NLOK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.84%.
  • The Revenue has been decreasing by -7.00% on average over the past years.
EPS 1Y (TTM)10.43%
EPS 3Y3.25%
EPS 5Y8.02%
EPS Q2Q%4.65%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.42%
Revenue growth 5Y-7%
Sales Q2Q%8.09%

3.2 Future

  • Based on estimates for the next years, NLOK will show a small growth in Earnings Per Share. The EPS will grow by 7.98% on average per year.
  • Based on estimates for the next years, NLOK will show a small growth in Revenue. The Revenue will grow by 4.64% on average per year.
EPS Next Y6.2%
EPS Next 2Y7.23%
EPS Next 3Y8.03%
EPS Next 5Y7.98%
Revenue Next Year5.5%
Revenue Next 2Y6.79%
Revenue Next 3Y6.75%
Revenue Next 5Y4.64%

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.
  • 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.
NLOK Yearly Revenue VS EstimatesNLOK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
NLOK Yearly EPS VS EstimatesNLOK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2 2.5

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2

4. NLOK Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.03, NLOK is valued correctly.
  • When comparing the Price/Earnings ratio of NLOK to the average of the S&P500 Index (24.88), we can say NLOK is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.76 indicates a reasonable valuation of NLOK.
  • When comparing the Price/Forward Earnings ratio of NLOK to the average of the S&P500 Index (22.19), we can say NLOK is valued rather cheaply.
Industry RankSector Rank
PE 12.03
Fwd PE 10.76
NLOK Price Earnings VS Forward Price EarningsNLOK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF 18.47
EV/EBITDA 20.97
NLOK Per share dataNLOK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -5 -10 -15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NLOK does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.94
PEG (5Y)1.5
EPS Next 2Y7.23%
EPS Next 3Y8.03%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. NLOK Dividend Analysis

5.1 Amount

  • NLOK has a Yearly Dividend Yield of 2.26%.
  • NLOK's Dividend Yield is comparable with the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 2.26%

5.2 History

  • The dividend of NLOK is nicely growing with an annual growth rate of 18.56%!
  • NLOK has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)18.56%
Div Incr YearsN/A
Div Non Decr YearsN/A
NLOK Yearly Dividends per shareNLOK Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • 50.59% of the earnings are spent on dividend by NLOK. This is a bit on the high side, but may be sustainable.
  • NLOK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.59%
EPS Next 2Y7.23%
EPS Next 3Y8.03%
NLOK Yearly Income VS Free CF VS DividendNLOK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 2B 4B 6B
NLOK Dividend Payout.NLOK Dividend Payout, showing the Payout Ratio.NLOK Dividend Payout.PayoutRetained Earnings

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NLOK Fundamentals: All Metrics, Ratios and Statistics

NORTONLIFELOCK INC

NASDAQ:NLOK (11/7/2022, 8:00:02 PM)

After market: 21.66 0 (0%)

21.66

-0.5 (-2.26%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-08
Earnings (Next)02-01
Inst Owners79.11%
Inst Owner Change-0.46%
Ins Owners0.22%
Ins Owner Change0%
Market Cap14.32B
Revenue(TTM)2.87B
Net Income(TTM)591.00M
Analysts76.92
Price Target27.07 (24.98%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.26%
Yearly Dividend0.5
Dividend Growth(5Y)18.56%
DP50.59%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.46%
Min EPS beat(2)-6.13%
Max EPS beat(2)-4.78%
EPS beat(4)1
Avg EPS beat(4)-3.45%
Min EPS beat(4)-6.13%
Max EPS beat(4)0.97%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-15.97%
Min Revenue beat(2)-17.57%
Max Revenue beat(2)-14.37%
Revenue beat(4)0
Avg Revenue beat(4)-13%
Min Revenue beat(4)-17.57%
Max Revenue beat(4)-4.92%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 12.03
Fwd PE 10.76
P/S 4.98
P/FCF 18.47
P/OCF 18.29
P/B 8.43
P/tB N/A
EV/EBITDA 20.97
EPS(TTM)1.8
EY8.31%
EPS(NY)2.01
Fwd EY9.29%
FCF(TTM)1.17
FCFY5.41%
OCF(TTM)1.18
OCFY5.47%
SpS4.35
BVpS2.57
TBVpS-17.79
PEG (NY)1.94
PEG (5Y)1.5
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 3.72%
ROE 34.81%
ROCE N/A
ROIC 5.9%
ROICexc 6.44%
ROICexgc N/A
OM 33.52%
PM (TTM) 20.57%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y33.91%
OM growth 5Y53.81%
PM growth 3Y187.2%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.18
Health
Industry RankSector Rank
Debt/Equity 5.82
Debt/FCF 12.98
Debt/EBITDA N/A
Cap/Depr 5.44%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 131.13%
Current Ratio 0.57
Quick Ratio 0.57
Altman-Z 0.75
F-Score4
WACC7.39%
ROIC/WACC0.8
Cap/Depr(3y)10.98%
Cap/Depr(5y)17.76%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.43%
EPS 3Y3.25%
EPS 5Y8.02%
EPS Q2Q%4.65%
EPS Next Y6.2%
EPS Next 2Y7.23%
EPS Next 3Y8.03%
EPS Next 5Y7.98%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y4.42%
Revenue growth 5Y-7%
Sales Q2Q%8.09%
Revenue Next Year5.5%
Revenue Next 2Y6.79%
Revenue Next 3Y6.75%
Revenue Next 5Y4.64%
EBIT growth 1Y-16.26%
EBIT growth 3Y39.82%
EBIT growth 5Y43.04%
EBIT Next Year11.19%
EBIT Next 3Y9.61%
EBIT Next 5Y6.54%
FCF growth 1Y158.45%
FCF growth 3Y-9.08%
FCF growth 5YN/A
OCF growth 1Y159.77%
OCF growth 3Y-13.31%
OCF growth 5YN/A

NORTONLIFELOCK INC / NLOK Fundamental Analysis FAQ

What is the ChartMill fundamental rating of NORTONLIFELOCK INC (NLOK) stock?

ChartMill assigns a fundamental rating of 4 / 10 to NLOK.


Can you provide the valuation status for NORTONLIFELOCK INC?

ChartMill assigns a valuation rating of 3 / 10 to NORTONLIFELOCK INC (NLOK). This can be considered as Overvalued.


Can you provide the profitability details for NORTONLIFELOCK INC?

NORTONLIFELOCK INC (NLOK) has a profitability rating of 7 / 10.


What are the PE and PB ratios of NORTONLIFELOCK INC (NLOK) stock?

The Price/Earnings (PE) ratio for NORTONLIFELOCK INC (NLOK) is 12.03 and the Price/Book (PB) ratio is 8.43.


Can you provide the financial health for NLOK stock?

The financial health rating of NORTONLIFELOCK INC (NLOK) is 1 / 10.