NETSCOUT SYSTEMS INC (NTCT)
US64115T1043 - Common Stock
NTCT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. NTCT has an average financial health and profitability rating. NTCT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
NTCT had positive earnings in the past year.
In the past year NTCT had a positive cash flow from operations.
In multiple years NTCT reported negative net income over the last 5 years.
In the past 5 years NTCT always reported a positive cash flow from operatings.
1.2 Ratios
NTCT has a Return On Assets of -4.57%. This is comparable to the rest of the industry: NTCT outperforms 48.15% of its industry peers.
Looking at the Return On Equity, with a value of -6.22%, NTCT is in line with its industry, outperforming 53.70% of the companies in the same industry.
The Return On Invested Capital of NTCT (2.01%) is better than 61.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTCT is significantly below the industry average of 10.42%.
The 3 year average ROIC (1.86%) for NTCT is below the current ROIC(2.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.57% | ||
| ROE | -6.22% | ||
| ROIC | 2.01% |
ROA(3y)1.29%
ROA(5y)0.31%
ROE(3y)1.88%
ROE(5y)0.39%
ROIC(3y)1.86%
ROIC(5y)N/A
1.3 Margins
NTCT's Profit Margin has declined in the last couple of years.
NTCT has a better Operating Margin (6.24%) than 70.37% of its industry peers.
NTCT's Operating Margin has improved in the last couple of years.
NTCT has a Gross Margin of 77.47%. This is amongst the best in the industry. NTCT outperforms 98.15% of its industry peers.
In the last couple of years the Gross Margin of NTCT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.24% | ||
| PM (TTM) | N/A | ||
| GM | 77.47% |
OM growth 3Y56.31%
OM growth 5Y134.88%
PM growth 3YN/A
PM growth 5Y-4.22%
GM growth 3Y1.25%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
NTCT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NTCT has been reduced compared to 1 year ago.
NTCT has less shares outstanding than it did 5 years ago.
NTCT has a better debt/assets ratio than last year.
2.2 Solvency
NTCT has an Altman-Z score of 1.92. This is not the best score and indicates that NTCT is in the grey zone with still only limited risk for bankruptcy at the moment.
NTCT has a Altman-Z score of 1.92. This is in the better half of the industry: NTCT outperforms 64.81% of its industry peers.
NTCT has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
NTCT's Debt to FCF ratio of 1.40 is fine compared to the rest of the industry. NTCT outperforms 72.22% of its industry peers.
NTCT has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
NTCT's Debt to Equity ratio of 0.05 is fine compared to the rest of the industry. NTCT outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.22
WACC9.35%
2.3 Liquidity
NTCT has a Current Ratio of 1.59. This is a normal value and indicates that NTCT is financially healthy and should not expect problems in meeting its short term obligations.
NTCT's Current ratio of 1.59 is on the low side compared to the rest of the industry. NTCT is outperformed by 68.52% of its industry peers.
A Quick Ratio of 1.55 indicates that NTCT should not have too much problems paying its short term obligations.
NTCT has a better Quick ratio (1.55) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The earnings per share for NTCT have decreased by -3.33% in the last year.
Measured over the past years, NTCT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.05% on average per year.
Looking at the last year, NTCT shows a decrease in Revenue. The Revenue has decreased by -7.08% in the last year.
NTCT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.51% yearly.
EPS 1Y (TTM)-3.33%
EPS 3Y11.5%
EPS 5Y9.05%
EPS growth Q2Q-27%
Revenue 1Y (TTM)-7.08%
Revenue growth 3Y0.84%
Revenue growth 5Y-1.51%
Revenue growth Q2Q-19.08%
3.2 Future
NTCT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.66% yearly.
The Revenue is expected to decrease by -1.91% on average over the next years.
EPS Next Y1.07%
EPS Next 2Y-0.28%
EPS Next 3Y0.66%
EPS Next 5YN/A
Revenue Next Year-7.55%
Revenue Next 2Y-3.91%
Revenue Next 3Y-1.91%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.77, the valuation of NTCT can be described as reasonable.
90.74% of the companies in the same industry are more expensive than NTCT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.84, NTCT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.11, the valuation of NTCT can be described as reasonable.
85.19% of the companies in the same industry are more expensive than NTCT, based on the Price/Forward Earnings ratio.
NTCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTCT is valued a bit cheaper than 79.63% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTCT indicates a somewhat cheap valuation: NTCT is cheaper than 70.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.79 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTCT does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)9.14
PEG (5Y)1.08
EPS Next 2Y-0.28%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
No dividends for NTCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NETSCOUT SYSTEMS INC
NASDAQ:NTCT (4/29/2024, 1:22:04 PM)
19.83
-0.07 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 9.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.14
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.57% | ||
| ROE | -6.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.24% | ||
| PM (TTM) | N/A | ||
| GM | 77.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.33%
EPS 3Y11.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.08%
Revenue growth 3Y0.84%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y