NETAPP INC (NTAP) Stock Fundamental Analysis
USA - NASDAQ:NTAP - US64110D1046 - Common Stock
113.77 USD
-1.92 (-1.66%)
112.76 USD
-1.01 (-0.89%)
We assign a fundamental rating of 7 out of 10 to NTAP. NTAP was compared to 35 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 is not valued too expensively and it also shows a decent growth rate. 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.
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.
1.2 Ratios
With an excellent Return On Assets value of 12.10%, NTAP belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
NTAP has a better Return On Equity (120.10%) than 97.14% of its industry peers.
NTAP has a better Return On Invested Capital (19.25%) than 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTAP is in line with the industry average of 16.54%.
The last Return On Invested Capital (19.25%) for NTAP is above the 3 year average (17.30%), which is a sign of increasing profitability.
| 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 Profit Margin of 17.77%. This is amongst the best in the industry. NTAP outperforms 88.57% of its industry peers.
NTAP's Profit Margin has improved in the last couple of years.
The Operating Margin of NTAP (21.79%) is better than 88.57% of its industry peers.
NTAP's Operating Margin has improved in the last couple of years.
NTAP has a better Gross Margin (70.00%) than 100.00% of its industry peers.
NTAP's Gross Margin has been stable in the last couple of years.
| 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.
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 2.87 indicates that NTAP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NTAP (2.87) is better than 68.57% 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.
NTAP has a better Debt to FCF ratio (1.50) than 82.86% of its industry peers.
A Debt/Equity ratio of 2.55 is on the high side and indicates that NTAP has dependencies on debt financing.
NTAP's Debt to Equity ratio of 2.55 is on the low side compared to the rest of the industry. NTAP is outperformed by 68.57% 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 | 2.55 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.87 |
ROIC/WACC2.4
WACC8.01%
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.
The Current ratio of NTAP (1.31) is comparable to the rest of the industry.
A Quick Ratio of 1.28 indicates that NTAP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.28, NTAP is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
| 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 9.43% yearly.
NTAP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y8.82%
EPS Next 2Y9.53%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue Next Year3%
Revenue Next 2Y3.91%
Revenue Next 3Y4.25%
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
A Price/Earnings ratio of 15.67 indicates a correct valuation of NTAP.
Based on the Price/Earnings ratio, NTAP is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. NTAP is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.05 indicates a correct valuation of NTAP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTAP indicates a somewhat cheap valuation: NTAP is cheaper than 74.29% of the companies listed in the same industry.
NTAP is valuated cheaply when we compare the Price/Forward Earnings ratio to 31.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 13.05 |
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 77.14% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTAP indicates a somewhat cheap valuation: NTAP is cheaper than 77.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.7 | ||
| EV/EBITDA | 12.38 |
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)1.78
PEG (5Y)1.29
EPS Next 2Y9.53%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
NTAP has a Yearly Dividend Yield of 1.80%.
Compared to an average industry Dividend Yield of 1.85, NTAP pays a better dividend. On top of this NTAP pays more dividend than 88.57% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, NTAP is paying slightly less dividend.
| 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 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 35.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of NTAP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.95%
EPS Next 2Y9.53%
EPS Next 3Y9.43%
113.77
-1.92 (-1.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change0.23%
Ins Owners0.23%
Ins Owner Change8.11%
Market Cap22.71B
Revenue(TTM)6.59B
Net Income(TTM)1.17B
Analysts71.11
Price Target122.41 (7.59%)
Short Float %7.17%
Short Ratio6.76
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)2.27%
PT rev (3m)4.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.67 | ||
| Fwd PE | 13.05 | ||
| P/S | 3.45 | ||
| P/FCF | 13.7 | ||
| P/OCF | 12.36 | ||
| P/B | 23.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.38 |
EPS(TTM)7.26
EY6.38%
EPS(NY)8.72
Fwd EY7.67%
FCF(TTM)8.31
FCFY7.3%
OCF(TTM)9.21
OCFY8.09%
SpS33.01
BVpS4.88
TBVpS-9
PEG (NY)1.78
PEG (5Y)1.29
Graham Number28.25
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%
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-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 | 2.87 |
F-Score6
WACC8.01%
ROIC/WACC2.4
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 Y8.82%
EPS Next 2Y9.53%
EPS Next 3Y9.43%
EPS Next 5YN/A
Revenue 1Y (TTM)3.34%
Revenue growth 3Y1.32%
Revenue growth 5Y3.96%
Sales Q2Q%1.17%
Revenue Next Year3%
Revenue Next 2Y3.91%
Revenue Next 3Y4.25%
Revenue Next 5YN/A
EBIT growth 1Y5.51%
EBIT growth 3Y5.81%
EBIT growth 5Y8.96%
EBIT Next Year17.85%
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%
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 for 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.
How financially healthy is NETAPP INC?
The financial health rating of NETAPP INC (NTAP) is 6 / 10.
What is the earnings growth outlook for NETAPP INC?
The Earnings per Share (EPS) of NETAPP INC (NTAP) is expected to grow by 8.82% in the next year.