NETSCOUT SYSTEMS INC (NTCT) Stock Fundamental Analysis
NASDAQ:NTCT • US64115T1043
29.21 USD
-0.12 (-0.41%)
At close: Feb 27, 2026
29.21 USD
0 (0%)
After Hours: 2/27/2026, 8:23:18 PM
We assign a fundamental rating of 5 out of 10 to NTCT. NTCT was compared to 48 industry peers in the Communications Equipment industry. Both the profitability and the financial health of NTCT get a neutral evaluation. Nothing too spectacular is happening here. A decent growth rate in combination with a cheap valuation! Better keep an eye on NTCT. This makes NTCT very considerable for value investing!
1. Profitability
1.1 Basic Checks
- NTCT had positive earnings in the past year.
- NTCT had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: NTCT reported negative net income in multiple years.
- In the past 5 years NTCT always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 4.13%, NTCT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- NTCT has a Return On Equity of 5.84%. This is in the better half of the industry: NTCT outperforms 70.83% of its industry peers.
- The Return On Invested Capital of NTCT (4.69%) is better than 66.67% 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 10.81%.
- The 3 year average ROIC (2.83%) for NTCT is below the current ROIC(4.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 5.84% | ||
| ROIC | 4.69% |
ROA(3y)-6.79%
ROA(5y)-3.72%
ROE(3y)-9.46%
ROE(5y)-5.14%
ROIC(3y)2.83%
ROIC(5y)2.2%
1.3 Margins
- NTCT's Profit Margin of 11.13% is fine compared to the rest of the industry. NTCT outperforms 79.17% of its industry peers.
- NTCT has a better Operating Margin (12.95%) than 79.17% of its industry peers.
- NTCT's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 79.25%, NTCT belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
- NTCT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.95% | ||
| PM (TTM) | 11.13% | ||
| GM | 79.25% |
OM growth 3Y19.56%
OM growth 5Y33.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.45%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTCT is destroying value.
- The number of shares outstanding for NTCT has been increased compared to 1 year ago.
- The number of shares outstanding for NTCT remains at a similar level compared to 5 years ago.
- There is no outstanding debt for NTCT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.62 indicates that NTCT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- NTCT has a better Altman-Z score (2.62) than 62.50% of its industry peers.
- There is no outstanding debt for NTCT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.5
WACC9.42%
2.3 Liquidity
- NTCT has a Current Ratio of 1.94. 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 1.94 is in line compared to the rest of the industry. NTCT outperforms 43.75% of its industry peers.
- A Quick Ratio of 1.91 indicates that NTCT should not have too much problems paying its short term obligations.
- NTCT has a Quick ratio of 1.91. This is in the better half of the industry: NTCT outperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 10.71% over the past year.
- Measured over the past 5 years, NTCT shows a small growth in Earnings Per Share. The EPS has been growing by 6.94% on average per year.
- Looking at the last year, NTCT shows a small growth in Revenue. The Revenue has grown by 4.91% in the last year.
- NTCT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.60% yearly.
EPS 1Y (TTM)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%
3.2 Future
- Based on estimates for the next years, NTCT will show a small growth in Earnings Per Share. The EPS will grow by 6.63% on average per year.
- Based on estimates for the next years, NTCT will show a small growth in Revenue. The Revenue will grow by 3.61% on average per year.
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y3.73%
Revenue Next 3Y3.61%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.78, which indicates a very decent valuation of NTCT.
- Compared to the rest of the industry, the Price/Earnings ratio of NTCT indicates a rather cheap valuation: NTCT is cheaper than 89.58% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of NTCT to the average of the S&P500 Index (27.07), we can say NTCT is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.33 indicates a reasonable valuation of NTCT.
- Based on the Price/Forward Earnings ratio, NTCT is valued cheaper than 89.58% of the companies in the same industry.
- NTCT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTCT is valued cheaper than 83.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NTCT is valued cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- NTCT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.08
PEG (5Y)1.7
EPS Next 2Y7.99%
EPS Next 3Y6.63%
5. Dividend
5.1 Amount
- NTCT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
29.21
-0.12 (-0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05 2026-02-05/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners94.63%
Inst Owner Change0.83%
Ins Owners3.68%
Ins Owner Change2.3%
Market Cap2.11B
Revenue(TTM)861.43M
Net Income(TTM)95.91M
Analysts76
Price Target35 (19.82%)
Short Float %2.72%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.85%
Min EPS beat(2)18.6%
Max EPS beat(2)37.11%
EPS beat(4)3
Avg EPS beat(4)17.16%
Min EPS beat(4)-0.04%
Max EPS beat(4)37.11%
EPS beat(8)7
Avg EPS beat(8)28.93%
EPS beat(12)11
Avg EPS beat(12)30.67%
EPS beat(16)15
Avg EPS beat(16)29.29%
Revenue beat(2)2
Avg Revenue beat(2)6.22%
Min Revenue beat(2)5.24%
Max Revenue beat(2)7.2%
Revenue beat(4)4
Avg Revenue beat(4)3.99%
Min Revenue beat(4)1.1%
Max Revenue beat(4)7.2%
Revenue beat(8)6
Avg Revenue beat(8)2.67%
Revenue beat(12)8
Avg Revenue beat(12)1.29%
Revenue beat(16)10
Avg Revenue beat(16)1.57%
PT rev (1m)2.23%
PT rev (3m)0.73%
EPS NQ rev (1m)-26.34%
EPS NQ rev (3m)-26.34%
EPS NY rev (1m)0%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)-7.54%
Revenue NQ rev (3m)-7.54%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 11.33 | ||
| P/S | 2.45 | ||
| P/FCF | 7.66 | ||
| P/OCF | 7.43 | ||
| P/B | 1.29 | ||
| P/tB | 6.11 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)2.48
EY8.49%
EPS(NY)2.58
Fwd EY8.82%
FCF(TTM)3.81
FCFY13.06%
OCF(TTM)3.93
OCFY13.45%
SpS11.93
BVpS22.73
TBVpS4.78
PEG (NY)1.08
PEG (5Y)1.7
Graham Number35.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 5.84% | ||
| ROCE | 5.94% | ||
| ROIC | 4.69% | ||
| ROICexc | 6.75% | ||
| ROICexgc | 864.84% | ||
| OM | 12.95% | ||
| PM (TTM) | 11.13% | ||
| GM | 79.25% | ||
| FCFM | 31.98% |
ROA(3y)-6.79%
ROA(5y)-3.72%
ROE(3y)-9.46%
ROE(5y)-5.14%
ROIC(3y)2.83%
ROIC(5y)2.2%
ROICexc(3y)3.67%
ROICexc(5y)2.85%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.58%
ROCE(5y)2.78%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y37.03%
ROICexc growth 5Y48.15%
OM growth 3Y19.56%
OM growth 5Y33.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.45%
GM growth 5Y1.45%
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 14.38% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 281.07 | ||
| Cash Conversion | 167.44% | ||
| Profit Quality | 287.23% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 2.62 |
F-Score8
WACC9.42%
ROIC/WACC0.5
Cap/Depr(3y)10.43%
Cap/Depr(5y)11.55%
Cap/Sales(3y)0.91%
Cap/Sales(5y)1.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.71%
EPS 3Y6.11%
EPS 5Y6.94%
EPS Q2Q%6.38%
EPS Next Y10.92%
EPS Next 2Y7.99%
EPS Next 3Y6.63%
EPS Next 5YN/A
Revenue 1Y (TTM)4.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-1.6%
Sales Q2Q%-0.53%
Revenue Next Year4.92%
Revenue Next 2Y3.73%
Revenue Next 3Y3.61%
Revenue Next 5YN/A
EBIT growth 1Y53.8%
EBIT growth 3Y18.01%
EBIT growth 5Y31.51%
EBIT Next Year14.45%
EBIT Next 3Y8.44%
EBIT Next 5YN/A
FCF growth 1Y286.94%
FCF growth 3Y-9.6%
FCF growth 5Y0.57%
OCF growth 1Y263.69%
OCF growth 3Y-9.74%
OCF growth 5Y-0.66%
NETSCOUT SYSTEMS INC / NTCT FAQ
What is the fundamental rating for NTCT stock?
ChartMill assigns a fundamental rating of 5 / 10 to NTCT.
Can you provide the valuation status for NETSCOUT SYSTEMS INC?
ChartMill assigns a valuation rating of 8 / 10 to NETSCOUT SYSTEMS INC (NTCT). This can be considered as Undervalued.
Can you provide the profitability details for NETSCOUT SYSTEMS INC?
NETSCOUT SYSTEMS INC (NTCT) has a profitability rating of 6 / 10.
How financially healthy is NETSCOUT SYSTEMS INC?
The financial health rating of NETSCOUT SYSTEMS INC (NTCT) is 6 / 10.