NETAPP INC (NTAP) Fundamental Analysis & Valuation

NASDAQ:NTAP • US64110D1046

Current stock price

102.34 USD
-2.11 (-2.02%)
At close:
102.34 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

  • NTAP had positive earnings in the past year.
  • In the past year NTAP had a positive cash flow from operations.
  • 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 has a Return On Assets of 12.16%. This is amongst the best in the industry. NTAP outperforms 89.19% of its industry peers.
  • The Return On Equity of NTAP (104.66%) is better than 94.59% of its industry peers.
  • The Return On Invested Capital of NTAP (20.01%) is better than 86.49% 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 15.72%.
  • 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

  • Looking at the Profit Margin, with a value of 18.07%, NTAP belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
  • In the last couple of years the Profit Margin of NTAP has grown nicely.
  • NTAP's Operating Margin of 23.22% is amongst the best of the industry. NTAP outperforms 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

  • 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.
  • NTAP has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, NTAP has a worse debt to assets ratio.
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

  • NTAP has an Altman-Z score of 2.74. 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.
  • NTAP's Altman-Z score of 2.74 is fine compared to the rest of the industry. NTAP outperforms 72.97% of its industry peers.
  • The Debt to FCF ratio of NTAP is 1.55, which is an excellent value as it means it would take NTAP, only 1.55 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of NTAP (1.55) is better 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.
  • Looking at the Debt to Equity ratio, with a value of 2.15, NTAP is doing worse than 64.86% of the companies in the same industry.
  • Although NTAP's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 2.15
Debt/FCF 1.55
Altman-Z 2.74
ROIC/WACC2.45
WACC8.16%
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.
  • NTAP has a Current ratio of 1.39. This is comparable to the rest of the industry: NTAP outperforms 45.95% of its industry peers.
  • A Quick Ratio of 1.36 indicates that NTAP should not have too much problems paying its short term obligations.
  • NTAP has a Quick ratio (1.36) which 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.
  • The Earnings Per Share has been growing by 12.19% on average over the past years. This is quite good.
  • Looking at the last year, NTAP shows a small growth in Revenue. The Revenue has grown by 3.09% in the last year.
  • The Revenue has been growing slightly by 3.96% on average over the past years.
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 9.49% 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 Y11.7%
EPS Next 2Y9.61%
EPS Next 3Y9.49%
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.
  • 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.
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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Find the best growth stocksShow best growing peers

6

4. NTAP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.38, NTAP is valued correctly.
  • 86.49% of the companies in the same industry are more expensive than NTAP, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of NTAP to the average of the S&P500 Index (24.88), we can say NTAP is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 11.72, 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 (22.19), we can say NTAP is valued slightly cheaper.
Industry RankSector Rank
PE 13.38
Fwd PE 11.72
NTAP Price Earnings VS Forward Price EarningsNTAP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

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 83.78% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, NTAP is valued a bit cheaper than 78.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.55
EV/EBITDA 10.38
NTAP Per share dataNTAP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • NTAP's 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)1.14
PEG (5Y)1.1
EPS Next 2Y9.61%
EPS Next 3Y9.49%

More info and screens

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

7

5. NTAP Dividend Analysis

5.1 Amount

  • NTAP has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
  • NTAP's Dividend Yield is rather good when compared to the industry average which is at 0.61. NTAP pays more dividend than 89.19% of the companies in the same industry.
  • NTAP's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector 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 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
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

  • NTAP pays out 34.24% of its income as dividend. This is a sustainable payout ratio.
  • NTAP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.24%
EPS Next 2Y9.61%
EPS Next 3Y9.49%
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 (3/27/2026, 8:00:01 PM)

After market: 102.34 0 (0%)

102.34

-2.11 (-2.02%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)02-26
Earnings (Next)05-28
Inst Owners102.06%
Inst Owner Change2.25%
Ins Owners0.23%
Ins Owner Change0.96%
Market Cap20.19B
Revenue(TTM)6.71B
Net Income(TTM)1.21B
Analysts71.43
Price Target119.01 (16.29%)
Short Float %9.59%
Short Ratio7.7
Dividend
Industry RankSector Rank
Dividend Yield 1.99%
Yearly Dividend2.08
Dividend Growth(5Y)1.72%
DP34.24%
Div Incr Years1
Div Non Decr Years11
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)1.29%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.63%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)4.1%
Revenue NQ rev (3m)3.93%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.17%
Valuation
Industry RankSector Rank
PE 13.38
Fwd PE 11.72
P/S 3.01
P/FCF 12.55
P/OCF 11.27
P/B 17.44
P/tB N/A
EV/EBITDA 10.38
EPS(TTM)7.65
EY7.48%
EPS(NY)8.73
Fwd EY8.53%
FCF(TTM)8.15
FCFY7.97%
OCF(TTM)9.08
OCFY8.87%
SpS34
BVpS5.87
TBVpS-8.23
PEG (NY)1.14
PEG (5Y)1.1
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 2.74
F-Score5
WACC8.16%
ROIC/WACC2.45
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 Y11.7%
EPS Next 2Y9.61%
EPS Next 3Y9.49%
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 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 11.7% in the next year.