NETAPP INC (NTAP) Stock Fundamental Analysis
NASDAQ:NTAP - Nasdaq - US64110D1046 - Common Stock - Currency: USD
Overall NTAP gets a fundamental rating of 6 out of 10. We evaluated NTAP against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. NTAP has an excellent profitability rating, but there are some minor concerns on its financial health. NTAP has a decent growth rate and is not valued too expensively. Finally 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.
In the past year NTAP had a positive cash flow from operations.
In the past 5 years NTAP has always been profitable.
Each year in the past 5 years NTAP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NTAP (10.96%) is better than 90.63% of its industry peers.
NTAP has a better Return On Equity (114.04%) than 96.88% of its industry peers.
The Return On Invested Capital of NTAP (18.95%) is better than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTAP is in line with the industry average of 16.14%.
The last Return On Invested Capital (18.95%) for NTAP is above the 3 year average (17.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 114.04% | ||
| ROIC | 18.95% |
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
NTAP has a better Profit Margin (18.05%) than 93.75% of its industry peers.
NTAP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.68%, NTAP belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
NTAP's Operating Margin has improved in the last couple of years.
NTAP's Gross Margin of 70.19% is amongst the best of the industry. NTAP outperforms 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 | 21.68% | ||
| PM (TTM) | 18.05% | ||
| GM | 70.19% |
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
An Altman-Z score of 2.51 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 2.51, NTAP is in line with its industry, outperforming 59.38% of the companies in the same industry.
The Debt to FCF ratio of NTAP is 2.42, which is a good value as it means it would take NTAP, 2.42 years of fcf income to pay off all of its debts.
NTAP's Debt to FCF ratio of 2.42 is amongst the best of the industry. NTAP outperforms 81.25% of its industry peers.
NTAP has a Debt/Equity ratio of 2.39. This is a high value indicating a heavy dependency on external financing.
NTAP has a worse Debt to Equity ratio (2.39) than 75.00% 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 | 2.39 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.96
WACC9.67%
2.3 Liquidity
A Current Ratio of 1.26 indicates that NTAP should not have too much problems paying its short term obligations.
The Current ratio of NTAP (1.26) is worse than 68.75% of its industry peers.
NTAP has a Quick Ratio of 1.22. This is a normal value and indicates that NTAP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.22, NTAP is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.36% over the past year.
The Earnings Per Share has been growing by 12.19% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.85% in the past year.
The Revenue has been growing slightly by 3.96% on average over the past years.
EPS 1Y (TTM)12.36%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%7.22%
Revenue 1Y (TTM)4.85%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%3.84%
3.2 Future
The Earnings Per Share is expected to grow by 8.77% on average over the next years. This is quite good.
Based on estimates for the next years, NTAP will show a small growth in Revenue. The Revenue will grow by 4.47% on average per year.
EPS Next Y8.51%
EPS Next 2Y9.15%
EPS Next 3Y8.77%
EPS Next 5YN/A
Revenue Next Year2.87%
Revenue Next 2Y3.99%
Revenue Next 3Y4.47%
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 14.75 indicates a correct valuation of NTAP.
Based on the Price/Earnings ratio, NTAP is valued cheaper than 81.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, NTAP is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.60, the valuation of NTAP can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as NTAP.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, NTAP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
NTAP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTAP is cheaper than 68.75% of the companies in the same industry.
NTAP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTAP is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 12.05 |
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)1.73
PEG (5Y)1.21
EPS Next 2Y9.15%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, NTAP has a reasonable but not impressive dividend return.
NTAP's Dividend Yield is rather good when compared to the industry average which is at 1.99. NTAP pays more dividend than 87.50% of the companies in the same industry.
NTAP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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 Years1
Div Non Decr Years11
5.3 Sustainability
35.75% of the earnings are spent on dividend by NTAP. This is a low number and sustainable payout ratio.
The dividend of NTAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.75%
EPS Next 2Y9.15%
EPS Next 3Y8.77%
107.26
-0.35 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners93.93%
Inst Owner Change-2.52%
Ins Owners0.24%
Ins Owner Change4.52%
Market Cap21.82B
Analysts70.71
Price Target116.78 (8.88%)
Short Float %4.05%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP35.75%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.06%
Min EPS beat(2)-1.89%
Max EPS beat(2)-0.24%
EPS beat(4)2
Avg EPS beat(4)1.46%
Min EPS beat(4)-1.89%
Max EPS beat(4)5.17%
EPS beat(8)5
Avg EPS beat(8)4.24%
EPS beat(12)9
Avg EPS beat(12)5.44%
EPS beat(16)13
Avg EPS beat(16)6.64%
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-5.03%
Max Revenue beat(2)-1.53%
Revenue beat(4)0
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-5.03%
Max Revenue beat(4)-0.96%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)3
Avg Revenue beat(12)-1.68%
Revenue beat(16)3
Avg Revenue beat(16)-1.58%
PT rev (1m)-2.77%
PT rev (3m)-5.07%
EPS NQ rev (1m)-7.69%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)0.35%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-3.85%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.6 | ||
| P/S | 3.32 | ||
| P/FCF | 16.31 | ||
| P/OCF | 14.49 | ||
| P/B | 20.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.05 |
EPS(TTM)7.27
EY6.78%
EPS(NY)7.89
Fwd EY7.35%
FCF(TTM)6.58
FCFY6.13%
OCF(TTM)7.4
OCFY6.9%
SpS32.31
BVpS5.11
TBVpS-8.49
PEG (NY)1.73
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 114.04% | ||
| ROCE | 23.13% | ||
| ROIC | 18.95% | ||
| ROICexc | 50.42% | ||
| ROICexgc | N/A | ||
| OM | 21.68% | ||
| PM (TTM) | 18.05% | ||
| GM | 70.19% | ||
| FCFM | 20.36% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 69.14% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 26.89 | ||
| Cash Conversion | 90.29% | ||
| Profit Quality | 112.82% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.51 |
F-Score6
WACC9.67%
ROIC/WACC1.96
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)12.36%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%7.22%
EPS Next Y8.51%
EPS Next 2Y9.15%
EPS Next 3Y8.77%
EPS Next 5YN/A
Revenue 1Y (TTM)4.85%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%3.84%
Revenue Next Year2.87%
Revenue Next 2Y3.99%
Revenue Next 3Y4.47%
Revenue Next 5YN/A
EBIT growth 1Y12.38%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year17.64%
EBIT Next 3Y9.84%
EBIT Next 5YN/A
FCF growth 1Y-12.55%
FCF growth 3Y10.75%
FCF growth 5Y7.41%
OCF growth 1Y-10.62%
OCF growth 3Y7.54%
OCF growth 5Y7.28%