NETAPP INC (NTAP) Stock Fundamental Analysis
NASDAQ:NTAP • US64110D1046
97.88 USD
-2.27 (-2.27%)
Last: Mar 3, 2026, 12:31 PM
We assign a fundamental rating of 7 out of 10 to NTAP. NTAP was compared to 36 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 valued quite cheap, while showing a decent growth score. This is a good combination! Finally NTAP also has an excellent dividend rating. With these ratings, NTAP could be worth investigating further for value and 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.
- 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
- NTAP has a Return On Assets of 12.16%. This is amongst the best in the industry. NTAP outperforms 88.89% of its industry peers.
- Looking at the Return On Equity, with a value of 104.66%, NTAP belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
- NTAP has a better Return On Invested Capital (20.01%) than 86.11% of its industry peers.
- NTAP had an Average Return On Invested Capital over the past 3 years of 17.30%. This is in line with the industry average of 16.73%.
- The last Return On Invested Capital (20.01%) for NTAP is above the 3 year average (17.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 104.66% | ||
| ROIC | 20.01% |
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
- NTAP's Profit Margin of 18.07% is amongst the best of the industry. NTAP outperforms 91.67% of its industry peers.
- In the last couple of years the Profit Margin of NTAP has grown nicely.
- The Operating Margin of NTAP (23.22%) is better than 88.89% of its industry peers.
- NTAP's Operating Margin has improved in the last couple of years.
- NTAP's Gross Margin of 70.46% is amongst the best of the industry. NTAP outperforms 100.00% of its industry peers.
- NTAP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.22% | ||
| PM (TTM) | 18.07% | ||
| GM | 70.46% |
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.
- 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
- NTAP has an Altman-Z score of 2.71. 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 has a better Altman-Z score (2.71) than 72.22% of its industry peers.
- The Debt to FCF ratio of NTAP is 1.55, which is an excellent value as it means it would take NTAP, only 1.55 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.55, NTAP belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
- NTAP has a Debt/Equity ratio of 2.15. This is a high value indicating a heavy dependency on external financing.
- NTAP's Debt to Equity ratio of 2.15 is on the low side compared to the rest of the industry. NTAP is outperformed by 66.67% of its industry peers.
- 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 | 2.15 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 2.71 |
ROIC/WACC2.59
WACC7.73%
2.3 Liquidity
- NTAP has a Current Ratio of 1.39. 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 Current ratio (1.39) which is in line with its industry peers.
- NTAP has a Quick Ratio of 1.36. This is a normal value and indicates that NTAP is financially healthy and should not expect problems in meeting its short term obligations.
- NTAP's Quick ratio of 1.36 is fine compared to the rest of the industry. NTAP outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.14% over the past year.
- Measured over the past years, NTAP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.19% on average per year.
- NTAP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.09%.
- 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)7.14%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%10.99%
Revenue 1Y (TTM)3.09%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%4.39%
3.2 Future
- Based on estimates for the next years, NTAP will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.49% on average per year.
- NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y11.7%
EPS Next 2Y9.61%
EPS Next 3Y9.49%
EPS Next 5YN/A
Revenue Next Year4.02%
Revenue Next 2Y4.62%
Revenue Next 3Y4.68%
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.
- 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
- The Price/Earnings ratio is 12.79, which indicates a correct valuation of NTAP.
- Based on the Price/Earnings ratio, NTAP is valued cheaper than 88.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.13. NTAP is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 11.21, the valuation of NTAP can be described as reasonable.
- Based on the Price/Forward Earnings ratio, NTAP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. NTAP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTAP is valued cheaper than 86.11% 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 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- NTAP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.09
PEG (5Y)1.05
EPS Next 2Y9.61%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.10%, NTAP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.65, NTAP pays a better dividend. On top of this NTAP pays more dividend than 88.89% of the companies listed in the same industry.
- NTAP's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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 34.24% 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.
DP34.24%
EPS Next 2Y9.61%
EPS Next 3Y9.49%
NASDAQ:NTAP (3/3/2026, 12:31:09 PM)
97.88
-2.27 (-2.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-26 2026-02-26/amc
Earnings (Next)05-28 2026-05-28/amc
Inst Owners100.11%
Inst Owner Change2.14%
Ins Owners0.23%
Ins Owner Change1.06%
Market Cap19.31B
Revenue(TTM)6.71B
Net Income(TTM)1.21B
Analysts71.43
Price Target123.25 (25.92%)
Short Float %9.4%
Short Ratio7.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP34.24%
Div Incr Years1
Div Non Decr Years11
Ex-Date01-02 2026-01-02 (0.52)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.62%
Min EPS beat(2)0.65%
Max EPS beat(2)6.58%
EPS beat(4)2
Avg EPS beat(4)1.46%
Min EPS beat(4)-1.15%
Max EPS beat(4)6.58%
EPS beat(8)4
Avg EPS beat(8)1.35%
EPS beat(12)8
Avg EPS beat(12)4.36%
EPS beat(16)12
Avg EPS beat(16)5.03%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-0.99%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.53%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)3
Avg Revenue beat(16)-1.58%
PT rev (1m)-1.94%
PT rev (3m)0.74%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.8%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.21 | ||
| P/S | 2.88 | ||
| P/FCF | 12 | ||
| P/OCF | 10.78 | ||
| P/B | 16.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.14 |
EPS(TTM)7.65
EY7.82%
EPS(NY)8.73
Fwd EY8.92%
FCF(TTM)8.15
FCFY8.33%
OCF(TTM)9.08
OCFY9.28%
SpS34
BVpS5.87
TBVpS-8.23
PEG (NY)1.09
PEG (5Y)1.05
Graham Number31.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 104.66% | ||
| ROCE | 24.43% | ||
| ROIC | 20.01% | ||
| ROICexc | 37.88% | ||
| ROICexgc | 217.41% | ||
| OM | 23.22% | ||
| PM (TTM) | 18.07% | ||
| GM | 70.46% | ||
| FCFM | 23.98% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.15 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 89.71% | ||
| Cap/Sales | 2.73% | ||
| Interest Coverage | 21.05 | ||
| Cash Conversion | 101.7% | ||
| Profit Quality | 132.76% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 2.71 |
F-Score5
WACC7.73%
ROIC/WACC2.59
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)7.14%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%10.99%
EPS Next Y11.7%
EPS Next 2Y9.61%
EPS Next 3Y9.49%
EPS Next 5YN/A
Revenue 1Y (TTM)3.09%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%4.39%
Revenue Next Year4.02%
Revenue Next 2Y4.62%
Revenue Next 3Y4.68%
Revenue Next 5YN/A
EBIT growth 1Y11.44%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year19.6%
EBIT Next 3Y9.07%
EBIT Next 5YN/A
FCF growth 1Y38.83%
FCF growth 3Y10.75%
FCF growth 5Y7.41%
OCF growth 1Y37.11%
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 of NETAPP INC (NTAP) stock?
ChartMill assigns a valuation rating of 7 / 10 to NETAPP INC (NTAP). This can be considered as Undervalued.
Can you provide the profitability details for NETAPP INC?
NETAPP INC (NTAP) has a profitability rating of 9 / 10.
Can you provide the financial health for NTAP stock?
The financial health rating of NETAPP INC (NTAP) is 6 / 10.
What is the expected EPS growth for NETAPP INC (NTAP) stock?
The Earnings per Share (EPS) of NETAPP INC (NTAP) is expected to grow by 11.7% in the next year.