NETAPP INC (NTAP) Fundamental Analysis & Valuation

NASDAQ:NTAP • US64110D1046

Current stock price

98.4 USD
+2.47 (+2.57%)
At close:
98.4 USD
0 (0%)
After Hours:

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

9

1. NTAP Profitability Analysis

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.
  • In the past 5 years NTAP always reported a positive cash flow from operatings.
NTAP Yearly Net Income VS EBIT VS OCF VS FCFNTAP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • NTAP's Return On Assets of 12.16% is amongst the best of the industry. NTAP outperforms 89.19% of its industry peers.
  • NTAP has a Return On Equity of 104.66%. This is amongst the best in the industry. NTAP outperforms 94.59% of its industry peers.
  • NTAP has a better Return On Invested Capital (20.01%) than 86.49% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NTAP is above the industry average of 15.19%.
  • 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 RankSector 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%
NTAP Yearly ROA, ROE, ROICNTAP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 200 300

1.3 Margins

  • The Profit Margin of NTAP (18.07%) is better than 91.89% of its industry peers.
  • In the last couple of years the Profit Margin of NTAP has grown nicely.
  • NTAP has a better Operating Margin (23.22%) than 91.89% 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 RankSector 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%
NTAP Yearly Profit, Operating, Gross MarginsNTAP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. NTAP Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NTAP is creating value.
  • The number of shares outstanding for NTAP has been reduced compared to 1 year ago.
  • NTAP has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for NTAP is higher compared to a year ago.
NTAP Yearly Shares OutstandingNTAP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
NTAP Yearly Total Debt VS Total AssetsNTAP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.65 indicates that NTAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.65, NTAP is in the better half of the industry, outperforming 67.57% of the companies in the same industry.
  • NTAP has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
  • NTAP has a better Debt to FCF ratio (1.55) than 83.78% of its industry peers.
  • 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 70.27% 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 RankSector Rank
Debt/Equity 2.15
Debt/FCF 1.55
Altman-Z 2.65
ROIC/WACC2.5
WACC8.01%
NTAP Yearly LT Debt VS Equity VS FCFNTAP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.39 indicates that NTAP should not have too much problems paying its short term obligations.
  • The Current ratio of NTAP (1.39) is comparable to the rest of the industry.
  • A Quick Ratio of 1.36 indicates that NTAP should not have too much problems paying its short term obligations.
  • The Quick ratio of NTAP (1.36) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 1.36
NTAP Yearly Current Assets VS Current LiabilitesNTAP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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

4

3. NTAP Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.14% over the past year.
  • NTAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.19% yearly.
  • The Revenue has been growing slightly by 3.09% in the past 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)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 9.36% on average per year.
  • NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
EPS Next Y11.93%
EPS Next 2Y9.41%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue Next Year4.24%
Revenue Next 2Y4.58%
Revenue Next 3Y4.72%
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.
NTAP Yearly Revenue VS EstimatesNTAP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
NTAP Yearly EPS VS EstimatesNTAP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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7

4. NTAP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.86 indicates a correct valuation of NTAP.
  • Based on the Price/Earnings ratio, NTAP is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.18, NTAP is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.31, which indicates a very decent valuation of NTAP.
  • 75.68% of the companies in the same industry are more expensive than NTAP, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of NTAP to the average of the S&P500 Index (37.96), we can say NTAP is valued rather cheaply.
Industry RankSector Rank
PE 12.86
Fwd PE 11.31
NTAP Price Earnings VS Forward Price EarningsNTAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTAP indicates a rather cheap valuation: NTAP is cheaper than 86.49% of the companies listed in the same industry.
  • NTAP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NTAP is cheaper than 78.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.07
EV/EBITDA 9.66
NTAP Per share dataNTAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The 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)1.08
PEG (5Y)1.06
EPS Next 2Y9.41%
EPS Next 3Y9.36%

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

7

5. NTAP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.17%, NTAP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.75, NTAP pays a better dividend. On top of this NTAP pays more dividend than 89.19% 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 RankSector Rank
Dividend Yield 2.17%

5.2 History

  • The dividend of NTAP has a limited annual growth rate of 1.72%.
  • NTAP has paid a dividend for at least 10 years, which is 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 Years2
Div Non Decr Years12
NTAP Yearly Dividends per shareNTAP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 34.24% of the earnings are spent on dividend by NTAP. This is a low number and sustainable payout ratio.
  • NTAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.24%
EPS Next 2Y9.41%
EPS Next 3Y9.36%
NTAP Yearly Income VS Free CF VS DividendNTAP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
NTAP Dividend Payout.NTAP Dividend Payout, showing the Payout Ratio.NTAP Dividend Payout.PayoutRetained Earnings

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NTAP Fundamentals: All Metrics, Ratios and Statistics

NETAPP INC

NASDAQ:NTAP (4/13/2026, 8:00:02 PM)

After market: 98.4 0 (0%)

98.4

+2.47 (+2.57%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-26
Earnings (Next)05-28
Inst Owners102.21%
Inst Owner Change0.04%
Ins Owners0.23%
Ins Owner Change1.03%
Market Cap19.42B
Revenue(TTM)6.71B
Net Income(TTM)1.21B
Analysts70.71
Price Target119.01 (20.95%)
Short Float %9.42%
Short Ratio7.25
Dividend
Industry RankSector Rank
Dividend Yield 2.17%
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP34.24%
Div Incr Years2
Div Non Decr Years12
Ex-Date04-02
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)-3.44%
PT rev (3m)-5.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.93%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.17%
Valuation
Industry RankSector Rank
PE 12.86
Fwd PE 11.31
P/S 2.89
P/FCF 12.07
P/OCF 10.84
P/B 16.77
P/tB N/A
EV/EBITDA 9.66
EPS(TTM)7.65
EY7.77%
EPS(NY)8.7
Fwd EY8.84%
FCF(TTM)8.15
FCFY8.29%
OCF(TTM)9.08
OCFY9.23%
SpS34
BVpS5.87
TBVpS-8.23
PEG (NY)1.08
PEG (5Y)1.06
Graham Number31.78
Profitability
Industry RankSector 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 RankSector 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 2.65
F-Score5
WACC8.01%
ROIC/WACC2.5
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 Y11.93%
EPS Next 2Y9.41%
EPS Next 3Y9.36%
EPS Next 5YN/A
Revenue 1Y (TTM)3.09%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%4.39%
Revenue Next Year4.24%
Revenue Next 2Y4.58%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
EBIT growth 1Y11.44%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year20.44%
EBIT Next 3Y9.46%
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 Fundamental Analysis 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.


What is the profitability of NTAP stock?

NETAPP INC (NTAP) has a profitability rating of 9 / 10.


What is the valuation of NETAPP INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for NETAPP INC (NTAP) is 12.86 and the Price/Book (PB) ratio is 16.77.


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 11.93% in the next year.