NETAPP INC (NTAP) Stock Fundamental Analysis
USA - NASDAQ:NTAP - US64110D1046 - Common Stock
114.12 USD
-1.79 (-1.54%)
114.12 USD
0 (0%)
Taking everything into account, NTAP scores 7 out of 10 in our fundamental rating. NTAP was compared to 34 industry peers in the Technology Hardware, Storage & Peripherals industry. While NTAP belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NTAP has a decent growth rate and is not valued too expensively. NTAP also has an excellent dividend rating. This makes NTAP very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year NTAP was profitable.
NTAP had a positive operating cash flow in the past year.
Each year in the past 5 years NTAP has been profitable.
NTAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NTAP (12.10%) is better than 88.24% of its industry peers.
With an excellent Return On Equity value of 120.10%, NTAP belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.25%, NTAP belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTAP is above the industry average of 14.92%.
The 3 year average ROIC (17.30%) for NTAP is below the current ROIC(19.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.1% | ||
| ROE | 120.1% | ||
| ROIC | 19.25% |
ROA(3y)11.3%
ROA(5y)10.21%
ROE(3y)103.33%
ROE(5y)105.68%
ROIC(3y)17.3%
ROIC(5y)16.23%
1.3 Margins
The Profit Margin of NTAP (17.77%) is better than 91.18% of its industry peers.
In the last couple of years the Profit Margin of NTAP has grown nicely.
The Operating Margin of NTAP (21.79%) is better than 91.18% of its industry peers.
NTAP's Operating Margin has improved in the last couple of years.
NTAP has a better Gross Margin (70.00%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of NTAP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.79% | ||
| PM (TTM) | 17.77% | ||
| GM | 70% |
OM growth 3Y4.43%
OM growth 5Y4.81%
PM growth 3Y6.76%
PM growth 5Y3.58%
GM growth 3Y1.67%
GM growth 5Y0.95%
2. Health
2.1 Basic Checks
NTAP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NTAP has less shares outstanding than it did 1 year ago.
NTAP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NTAP has a worse debt to assets ratio.
2.2 Solvency
NTAP has an Altman-Z score of 2.88. This is not the best score and indicates that NTAP is in the grey zone with still only limited risk for bankruptcy at the moment.
NTAP's Altman-Z score of 2.88 is fine compared to the rest of the industry. NTAP outperforms 67.65% of its industry peers.
The Debt to FCF ratio of NTAP is 1.50, which is an excellent value as it means it would take NTAP, only 1.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NTAP (1.50) is better than 82.35% of its industry peers.
A Debt/Equity ratio of 2.55 is on the high side and indicates that NTAP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.55, NTAP is doing worse than 70.59% of the companies in the same industry.
Although NTAP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.88 |
ROIC/WACC2.45
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.31 indicates that NTAP should not have too much problems paying its short term obligations.
NTAP has a Current ratio (1.31) which is in line with its industry peers.
A Quick Ratio of 1.28 indicates that NTAP should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.28, NTAP is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
NTAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.52%.
The Earnings Per Share has been growing by 12.19% on average over the past years. This is quite good.
Looking at the last year, NTAP shows a small growth in Revenue. The Revenue has grown by 3.34% in the last year.
Measured over the past years, NTAP shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
EPS 1Y (TTM)5.52%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%-0.64%
Revenue 1Y (TTM)3.34%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%1.17%
3.2 Future
The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y8.82%
EPS Next 2Y9.53%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue Next Year3%
Revenue Next 2Y3.91%
Revenue Next 3Y4.25%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NTAP is valuated correctly with a Price/Earnings ratio of 15.72.
NTAP's Price/Earnings ratio is rather cheap when compared to the industry. NTAP is cheaper than 88.24% of the companies in the same industry.
NTAP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
NTAP is valuated correctly with a Price/Forward Earnings ratio of 13.09.
79.41% of the companies in the same industry are more expensive than NTAP, based on the Price/Forward Earnings ratio.
NTAP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTAP is valued a bit cheaper than 76.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTAP is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.74 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
NTAP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NTAP may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)1.29
EPS Next 2Y9.53%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.77%.
Compared to an average industry Dividend Yield of 1.86, NTAP pays a better dividend. On top of this NTAP pays more dividend than 88.24% of the companies listed in the same industry.
NTAP's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
5.2 History
The dividend of NTAP has a limited annual growth rate of 1.72%.
NTAP has been paying a dividend for at least 10 years, so it has a reliable track record.
NTAP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.72%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
NTAP pays out 35.95% of its income as dividend. This is a sustainable payout ratio.
NTAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.95%
EPS Next 2Y9.53%
EPS Next 3Y9.43%
114.12
-1.79 (-1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change0.55%
Ins Owners0.23%
Ins Owner Change8.11%
Market Cap22.78B
Revenue(TTM)6.59B
Net Income(TTM)1.17B
Analysts71.11
Price Target121.05 (6.07%)
Short Float %7.17%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP35.95%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.69%
Min EPS beat(2)-1.15%
Max EPS beat(2)-0.24%
EPS beat(4)1
Avg EPS beat(4)-0.12%
Min EPS beat(4)-1.89%
Max EPS beat(4)2.8%
EPS beat(8)4
Avg EPS beat(8)3.43%
EPS beat(12)8
Avg EPS beat(12)4.75%
EPS beat(16)12
Avg EPS beat(16)5.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-5.03%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-1.48%
Revenue beat(12)2
Avg Revenue beat(12)-1.82%
Revenue beat(16)3
Avg Revenue beat(16)-1.64%
PT rev (1m)1.14%
PT rev (3m)3.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 13.09 | ||
| P/S | 3.46 | ||
| P/FCF | 13.74 | ||
| P/OCF | 12.39 | ||
| P/B | 23.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.42 |
EPS(TTM)7.26
EY6.36%
EPS(NY)8.72
Fwd EY7.64%
FCF(TTM)8.31
FCFY7.28%
OCF(TTM)9.21
OCFY8.07%
SpS33.01
BVpS4.88
TBVpS-9
PEG (NY)1.78
PEG (5Y)1.29
Graham Number28.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.1% | ||
| ROE | 120.1% | ||
| ROCE | 23.5% | ||
| ROIC | 19.25% | ||
| ROICexc | 42.22% | ||
| ROICexgc | 7841.69% | ||
| OM | 21.79% | ||
| PM (TTM) | 17.77% | ||
| GM | 70% | ||
| FCFM | 25.16% |
ROA(3y)11.3%
ROA(5y)10.21%
ROE(3y)103.33%
ROE(5y)105.68%
ROIC(3y)17.3%
ROIC(5y)16.23%
ROICexc(3y)40.17%
ROICexc(5y)45.98%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.12%
ROCE(5y)19.81%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.26%
ROICexc growth 5Y0.5%
OM growth 3Y4.43%
OM growth 5Y4.81%
PM growth 3Y6.76%
PM growth 5Y3.58%
GM growth 3Y1.67%
GM growth 5Y0.95%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 77.92% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 27.09 | ||
| Cash Conversion | 110.26% | ||
| Profit Quality | 141.59% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.88 |
F-Score6
WACC7.85%
ROIC/WACC2.45
Cap/Depr(3y)75.43%
Cap/Depr(5y)84.21%
Cap/Sales(3y)2.93%
Cap/Sales(5y)3.04%
Profit Quality(3y)112.04%
Profit Quality(5y)120.33%
High Growth Momentum
Growth
EPS 1Y (TTM)5.52%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%-0.64%
EPS Next Y8.82%
EPS Next 2Y9.53%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue 1Y (TTM)3.34%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%1.17%
Revenue Next Year3%
Revenue Next 2Y3.91%
Revenue Next 3Y4.25%
Revenue Next 5YN/A
EBIT growth 1Y5.51%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year17.85%
EBIT Next 3Y10.02%
EBIT Next 5YN/A
FCF growth 1Y54.95%
FCF growth 3Y10.75%
FCF growth 5Y7.41%
OCF growth 1Y43.71%
OCF growth 3Y7.54%
OCF growth 5Y7.28%
NETAPP INC / NTAP FAQ
What is the ChartMill fundamental rating of NETAPP INC (NTAP) stock?
ChartMill assigns a fundamental rating of 7 / 10 to NTAP.
What is the valuation status for NTAP stock?
ChartMill assigns a valuation rating of 6 / 10 to NETAPP INC (NTAP). This can be considered as Fairly Valued.
Can you provide the profitability details for NETAPP INC?
NETAPP INC (NTAP) has a profitability rating of 9 / 10.
How financially healthy is NETAPP INC?
The financial health rating of NETAPP INC (NTAP) is 6 / 10.
What is the earnings growth outlook for NETAPP INC?
The Earnings per Share (EPS) of NETAPP INC (NTAP) is expected to grow by 8.82% in the next year.