NETAPP INC (NTAP) Stock Fundamental Analysis
NASDAQ:NTAP - US64110D1046 - Common Stock
118.83 USD
+2.36 (+2.03%)
118.95 USD
+0.12 (+0.1%)
Taking everything into account, NTAP scores 6 out of 10 in our fundamental rating. NTAP was compared to 33 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
NTAP had positive earnings in the past year.
In the past year NTAP had a positive cash flow from operations.
In the past 5 years NTAP has always been profitable.
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 better Return On Equity (120.10%) than 96.97% of its industry peers.
NTAP's Return On Invested Capital of 19.25% is amongst the best of the industry. NTAP outperforms 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTAP is above the industry average of 15.03%.
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
NTAP has a better Profit Margin (17.77%) than 93.94% of its industry peers.
NTAP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 21.79%, NTAP belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Operating Margin of NTAP has grown nicely.
NTAP's Gross Margin of 70.00% 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 | 21.79% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NTAP is creating value.
NTAP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NTAP has less shares outstanding
The debt/assets ratio for NTAP is higher compared to a year ago.
2.2 Solvency
NTAP has an Altman-Z score of 2.92. 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.
The Altman-Z score of NTAP (2.92) is better than 69.70% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 1.50, NTAP belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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 | 2.92 |
ROIC/WACC2.38
WACC8.09%
2.3 Liquidity
NTAP has a Current Ratio of 1.31. 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 Current ratio, with a value of 1.31, NTAP is doing worse than 60.61% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that NTAP should not have too much problems paying its short term obligations.
The Quick ratio of NTAP (1.28) is better than 60.61% of its industry peers.
| 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.
NTAP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.19% yearly.
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.
NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.39% yearly.
EPS Next Y8.66%
EPS Next 2Y9.17%
EPS Next 3Y9.78%
EPS Next 5YN/A
Revenue Next Year3.02%
Revenue Next 2Y4.04%
Revenue Next 3Y4.39%
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 stable.
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 16.37 indicates a correct valuation of NTAP.
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.
NTAP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.72, which indicates a correct valuation of NTAP.
Based on the Price/Forward Earnings ratio, NTAP is valued a bit cheaper than 60.61% of the companies in the same industry.
NTAP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTAP indicates a somewhat cheap valuation: NTAP is cheaper than 66.67% of the companies listed in the same industry.
75.76% of the companies in the same industry are more expensive than NTAP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.34 | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTAP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of NTAP may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)1.34
EPS Next 2Y9.17%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.80%.
NTAP's Dividend Yield is rather good when compared to the industry average which is at 1.85. 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 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
35.95% 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.
DP35.95%
EPS Next 2Y9.17%
EPS Next 3Y9.78%
118.83
+2.36 (+2.03%)
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 Change5.95%
Market Cap23.78B
Analysts71.11
Price Target119.69 (0.72%)
Short Float %4.97%
Short Ratio5.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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)1.4%
PT rev (3m)-1.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.62%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.37 | ||
| Fwd PE | 13.72 | ||
| P/S | 3.61 | ||
| P/FCF | 14.34 | ||
| P/OCF | 12.94 | ||
| P/B | 24.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.73 |
EPS(TTM)7.26
EY6.11%
EPS(NY)8.66
Fwd EY7.29%
FCF(TTM)8.29
FCFY6.97%
OCF(TTM)9.19
OCFY7.73%
SpS32.93
BVpS4.87
TBVpS-8.98
PEG (NY)1.89
PEG (5Y)1.34
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 | 2.92 |
F-Score6
WACC8.09%
ROIC/WACC2.38
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 Year3.02%
Revenue Next 2Y4.04%
Revenue Next 3Y4.39%
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%