NETAPP INC (NTAP) Stock Fundamental Analysis
USA - NASDAQ:NTAP - US64110D1046 - Common Stock
119.89 USD
-0.89 (-0.74%)
We assign a fundamental rating of 6 out of 10 to NTAP. NTAP was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. While NTAP has a great profitability rating, there are some minor concerns on its financial health. NTAP is not valued too expensively and it also shows a decent growth rate. NTAP also has an excellent dividend rating. This makes NTAP very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
NTAP had positive earnings in the past year.
In the past year NTAP had a positive cash flow from operations.
NTAP had positive earnings in each of the past 5 years.
NTAP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTAP has a Return On Assets of 12.10%. This is amongst the best in the industry. NTAP outperforms 87.88% of its industry peers.
NTAP has a Return On Equity of 120.10%. This is amongst the best in the industry. NTAP outperforms 96.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.25%, NTAP belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
NTAP had an Average Return On Invested Capital over the past 3 years of 17.30%. This 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
Looking at the Profit Margin, with a value of 17.77%, NTAP belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Profit Margin of NTAP has grown nicely.
NTAP's Operating Margin of 21.79% is amongst the best of the industry. NTAP outperforms 93.94% of its industry peers.
In the last couple of years the Operating Margin of NTAP has grown nicely.
NTAP has a better Gross Margin (70.00%) than 100.00% of its industry peers.
NTAP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, NTAP has less shares outstanding
Compared to 5 years ago, NTAP has less shares outstanding
NTAP has a worse debt/assets ratio than last year.
2.2 Solvency
NTAP has an Altman-Z score of 2.97. 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.
With a decent Altman-Z score value of 2.97, NTAP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 81.82% of its industry peers.
NTAP has a Debt/Equity ratio of 2.55. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.55, NTAP is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.97 |
ROIC/WACC2.39
WACC8.04%
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 worse Current ratio (1.31) than 60.61% of its industry peers.
NTAP has a Quick Ratio of 1.28. This is a normal value and indicates that NTAP is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.28, NTAP is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.52% over the past year.
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.
NTAP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.96% yearly.
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
NTAP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.78% yearly.
Based on estimates for the next years, NTAP will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y8.66%
EPS Next 2Y9.17%
EPS Next 3Y9.78%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y3.94%
Revenue Next 3Y4.38%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.51, NTAP is valued correctly.
NTAP's Price/Earnings ratio is rather cheap when compared to the industry. NTAP is cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, NTAP is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.84 indicates a correct valuation of NTAP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTAP indicates a somewhat cheap valuation: NTAP is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NTAP to the average of the S&P500 Index (22.64), we can say NTAP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
NTAP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTAP is cheaper than 69.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTAP is valued a bit cheaper than 75.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NTAP may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)1.35
EPS Next 2Y9.17%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.65%.
NTAP's Dividend Yield is rather good when compared to the industry average which is at 2.14. NTAP pays more dividend than 87.88% of the companies in the same industry.
NTAP's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y9.17%
EPS Next 3Y9.78%
NASDAQ:NTAP (9/26/2025, 1:11:12 PM)
119.89
-0.89 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners95.59%
Inst Owner Change2.74%
Ins Owners0.22%
Ins Owner Change6.64%
Market Cap23.93B
Analysts71.11
Price Target119.69 (-0.17%)
Short Float %5.09%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)2.62%
PT rev (3m)2.49%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.51 | ||
| Fwd PE | 13.84 | ||
| P/S | 3.63 | ||
| P/FCF | 14.43 | ||
| P/OCF | 13.02 | ||
| P/B | 24.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.22 |
EPS(TTM)7.26
EY6.06%
EPS(NY)8.66
Fwd EY7.23%
FCF(TTM)8.31
FCFY6.93%
OCF(TTM)9.21
OCFY7.68%
SpS33.01
BVpS4.88
TBVpS-9
PEG (NY)1.91
PEG (5Y)1.35
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 2.97 |
F-Score6
WACC8.04%
ROIC/WACC2.39
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 Y8.66%
EPS Next 2Y9.17%
EPS Next 3Y9.78%
EPS Next 5YN/A
Revenue 1Y (TTM)3.34%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%1.17%
Revenue Next Year3.09%
Revenue Next 2Y3.94%
Revenue Next 3Y4.38%
Revenue Next 5YN/A
EBIT growth 1Y5.51%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year18.64%
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%