111.56 USD
+2.31 (+2.11%)
111.5 USD
-0.06 (-0.05%)
Overall NTAP gets a fundamental rating of 7 out of 10. We evaluated NTAP against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. NTAP scores excellent on profitability, but 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. These ratings would make NTAP suitable for dividend investing!
1. Profitability
1.1 Basic Checks
NTAP had positive earnings in the past year.
NTAP had a positive operating cash flow in the past year.
NTAP had positive earnings in each of the past 5 years.
Each year in the past 5 years NTAP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NTAP (12.22%) is better than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 119.37%, NTAP belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.95%, NTAP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NTAP is in line with the industry average of 15.32%.
The last Return On Invested Capital (19.95%) for NTAP is above the 3 year average (17.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 119.37% | ||
| ROIC | 19.95% |
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 17.73%, NTAP belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of NTAP has grown nicely.
Looking at the Operating Margin, with a value of 22.60%, NTAP belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Operating Margin of NTAP has grown nicely.
With an excellent Gross Margin value of 70.26%, NTAP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 | 22.6% | ||
| PM (TTM) | 17.73% | ||
| GM | 70.26% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NTAP is creating value.
The number of shares outstanding for NTAP has been reduced compared to 1 year ago.
The number of shares outstanding for NTAP has been reduced compared to 5 years ago.
Compared to 1 year ago, NTAP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that NTAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NTAP (2.86) is better than 65.71% of its industry peers.
NTAP has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.48, NTAP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NTAP has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
NTAP's Debt to Equity ratio of 2.52 is on the low side compared to the rest of the industry. NTAP is outperformed by 71.43% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 2.86 |
ROIC/WACC2.54
WACC7.86%
2.3 Liquidity
A Current Ratio of 1.34 indicates that NTAP should not have too much problems paying its short term obligations.
NTAP has a Current ratio (1.34) which is in line with its industry peers.
NTAP has a Quick Ratio of 1.30. This is a normal value and indicates that NTAP is financially healthy and should not expect problems in meeting its short term obligations.
NTAP has a Quick ratio of 1.30. This is comparable to the rest of the industry: NTAP outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.77% over the past year.
The Earnings Per Share has been growing by 12.19% on average over the past years. This is quite good.
NTAP shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
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)3.77%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%9.63%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%2.83%
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 9.09% yearly.
Based on estimates for the next years, NTAP will show a small growth in Revenue. The Revenue will grow by 4.13% on average per year.
EPS Next Y8.82%
EPS Next 2Y9.53%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year3%
Revenue Next 2Y3.91%
Revenue Next 3Y4.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 14.99 indicates a correct valuation of NTAP.
Based on the Price/Earnings ratio, NTAP is valued cheaper than 85.71% of the companies in the same industry.
NTAP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.79, NTAP is valued correctly.
68.57% of the companies in the same industry are more expensive than NTAP, based on the Price/Forward Earnings ratio.
NTAP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTAP is valued a bit cheaper than 77.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTAP is valued a bit cheaper than 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 11.82 |
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)1.7
PEG (5Y)1.23
EPS Next 2Y9.53%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.96, NTAP pays a better dividend. On top of this NTAP pays more dividend than 88.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NTAP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 35.51% of its income as dividend. This is a sustainable payout ratio.
The dividend of NTAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.51%
EPS Next 2Y9.53%
EPS Next 3Y9.09%
111.56
+2.31 (+2.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change0.33%
Ins Owners0.23%
Ins Owner Change-0.94%
Market Cap22.27B
Revenue(TTM)6.64B
Net Income(TTM)1.18B
Analysts71.11
Price Target122.34 (9.66%)
Short Float %7.48%
Short Ratio7.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP35.51%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.72%
Min EPS beat(2)-1.15%
Max EPS beat(2)6.58%
EPS beat(4)1
Avg EPS beat(4)0.83%
Min EPS beat(4)-1.89%
Max EPS beat(4)6.58%
EPS beat(8)4
Avg EPS beat(8)2.83%
EPS beat(12)8
Avg EPS beat(12)4.54%
EPS beat(16)12
Avg EPS beat(16)5.61%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)-0.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-5.03%
Max Revenue beat(4)-0.99%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.64%
PT rev (1m)1.06%
PT rev (3m)3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.99 | ||
| Fwd PE | 12.79 | ||
| P/S | 3.36 | ||
| P/FCF | 13.29 | ||
| P/OCF | 11.97 | ||
| P/B | 22.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.82 |
EPS(TTM)7.44
EY6.67%
EPS(NY)8.72
Fwd EY7.82%
FCF(TTM)8.4
FCFY7.53%
OCF(TTM)9.32
OCFY8.35%
SpS33.25
BVpS4.94
TBVpS-8.9
PEG (NY)1.7
PEG (5Y)1.23
Graham Number28.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.22% | ||
| ROE | 119.37% | ||
| ROCE | 24.35% | ||
| ROIC | 19.95% | ||
| ROICexc | 39.06% | ||
| ROICexgc | 319.97% | ||
| OM | 22.6% | ||
| PM (TTM) | 17.73% | ||
| GM | 70.26% | ||
| FCFM | 25.25% |
ROA(3y)11.3%
ROA(5y)10.21%
ROE(3y)103.33%
ROE(5y)105.68%
ROIC(3y)17.3%
ROIC(5y)16.23%
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-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.52 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 83.64% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 18.52 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 142.4% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.86 |
F-Score5
WACC7.86%
ROIC/WACC2.54
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)3.77%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%9.63%
EPS Next Y8.82%
EPS Next 2Y9.53%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%2.83%
Revenue Next Year3%
Revenue Next 2Y3.91%
Revenue Next 3Y4.13%
Revenue Next 5YN/A
EBIT growth 1Y6.61%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year17.85%
EBIT Next 3Y9%
EBIT Next 5YN/A
FCF growth 1Y62.72%
FCF growth 3Y10.75%
FCF growth 5Y7.41%
OCF growth 1Y55%
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.