105.55 USD
+1.24 (+1.19%)
105.6 USD
+0.05 (+0.05%)
Taking everything into account, NTAP scores 7 out of 10 in our fundamental rating. NTAP was compared to 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 has a decent growth rate and is not valued too expensively. NTAP also has an excellent dividend rating. With these ratings, NTAP could be worth investigating further 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
Looking at the Return On Assets, with a value of 12.22%, NTAP belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
NTAP's Return On Equity of 119.37% is amongst the best of the industry. NTAP outperforms 97.14% of its industry peers.
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.
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 16.06%.
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
The Profit Margin of NTAP (17.73%) is better than 91.43% of its industry peers.
NTAP's Profit Margin has improved in the last couple of years.
NTAP has a Operating Margin of 22.60%. This is amongst the best in the industry. NTAP outperforms 91.43% of its industry peers.
In the last couple of years the Operating Margin of NTAP has grown nicely.
NTAP's Gross Margin of 70.26% 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 | 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
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
Compared to 1 year ago, NTAP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that NTAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.80, NTAP is doing good in the industry, outperforming 68.57% of the companies in the same industry.
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.
NTAP has a better Debt to FCF ratio (1.48) than 85.71% of its industry peers.
NTAP has a Debt/Equity ratio of 2.52. This is a high value indicating a heavy dependency on external financing.
NTAP has a Debt to Equity ratio of 2.52. This is in the lower half of the industry: NTAP underperforms 62.86% 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 | 2.52 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 2.8 |
ROIC/WACC2.5
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.34 indicates that NTAP should not have too much problems paying its short term obligations.
NTAP's Current ratio of 1.34 is in line compared to the rest of the industry. NTAP outperforms 51.43% of its industry peers.
A Quick Ratio of 1.30 indicates that NTAP should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.30, NTAP is doing good in the industry, outperforming 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
NTAP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.77%.
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 2.53% in the last 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)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
The Earnings Per Share is expected to grow by 8.53% 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 4.23% on average per year.
EPS Next Y11.02%
EPS Next 2Y9.56%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue Next Year3.03%
Revenue Next 2Y3.93%
Revenue Next 3Y4.23%
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.
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 14.19, which indicates a correct valuation of NTAP.
NTAP's Price/Earnings ratio is rather cheap when compared to the industry. NTAP is cheaper than 85.71% of the companies in the same industry.
NTAP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
Based on the Price/Forward Earnings ratio of 12.09, the valuation of NTAP can be described as correct.
74.29% of the companies in the same industry are more expensive than NTAP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, NTAP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
80.00% of the companies in the same industry are more expensive than NTAP, based on the Enterprise Value to EBITDA ratio.
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 | 12.47 | ||
| EV/EBITDA | 11.3 |
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)1.29
PEG (5Y)1.16
EPS Next 2Y9.56%
EPS Next 3Y8.53%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.94%.
Compared to an average industry Dividend Yield of 0.63, NTAP pays a better dividend. On top of this NTAP pays more dividend than 88.57% of the companies listed in the same industry.
NTAP's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
35.51% 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.
DP35.51%
EPS Next 2Y9.56%
EPS Next 3Y8.53%
105.55
+1.24 (+1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners100.11%
Inst Owner Change0%
Ins Owners0.23%
Ins Owner Change-0.38%
Market Cap20.91B
Revenue(TTM)6.64B
Net Income(TTM)1.18B
Analysts71.85
Price Target125.69 (19.08%)
Short Float %8.03%
Short Ratio8.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)2.74%
PT rev (3m)3.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.09 | ||
| P/S | 3.15 | ||
| P/FCF | 12.47 | ||
| P/OCF | 11.24 | ||
| P/B | 21.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.3 |
EPS(TTM)7.44
EY7.05%
EPS(NY)8.73
Fwd EY8.27%
FCF(TTM)8.46
FCFY8.02%
OCF(TTM)9.39
OCFY8.9%
SpS33.51
BVpS4.98
TBVpS-8.97
PEG (NY)1.29
PEG (5Y)1.16
Graham Number28.87
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 | 2.8 |
F-Score5
WACC7.97%
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)3.77%
EPS 3Y11.18%
EPS 5Y12.19%
EPS Q2Q%9.63%
EPS Next Y11.02%
EPS Next 2Y9.56%
EPS Next 3Y8.53%
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%2.83%
Revenue Next Year3.03%
Revenue Next 2Y3.93%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
EBIT growth 1Y6.61%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year20.07%
EBIT Next 3Y9.34%
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 of NETAPP INC (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.
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 11.02% in the next year.