NETSOL TECHNOLOGIES INC (NTWK) Stock Fundamental Analysis
USA - NASDAQ:NTWK - US64115A4022 - Common Stock
2.83 USD
-0.13 (-4.55%)
2.88 USD
+0.05 (+1.77%)
Overall NTWK gets a fundamental rating of 3 out of 10. We evaluated NTWK against 281 industry peers in the Software industry. NTWK has only an average score on both its financial health and profitability. NTWK does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year NTWK has reported negative net income.
NTWK had a positive operating cash flow in the past year.
In multiple years NTWK reported negative net income over the last 5 years.
Each year in the past 5 years NTWK had a positive operating cash flow.
1.2 Ratios
NTWK has a Return On Assets of 0.46%. This is in the better half of the industry: NTWK outperforms 60.50% of its industry peers.
With a decent Return On Equity value of 0.75%, NTWK is doing good in the industry, outperforming 62.99% of the companies in the same industry.
NTWK has a Return On Invested Capital of 1.96%. This is in the better half of the industry: NTWK outperforms 65.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 0.75% | ||
| ROIC | 1.96% |
ROA(3y)-1.08%
ROA(5y)-0.47%
ROE(3y)-1.94%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NTWK has a Profit Margin of 0.41%. This is in the better half of the industry: NTWK outperforms 60.14% of its industry peers.
In the last couple of years the Profit Margin of NTWK has grown nicely.
Looking at the Operating Margin, with a value of 1.72%, NTWK is in the better half of the industry, outperforming 62.63% of the companies in the same industry.
In the last couple of years the Operating Margin of NTWK has grown nicely.
Looking at the Gross Margin, with a value of 47.87%, NTWK is doing worse than 69.39% of the companies in the same industry.
In the last couple of years the Gross Margin of NTWK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.72% | ||
| PM (TTM) | 0.41% | ||
| GM | 47.87% |
OM growth 3YN/A
OM growth 5Y22.79%
PM growth 3YN/A
PM growth 5Y21.54%
GM growth 3Y5.93%
GM growth 5Y0.6%
2. Health
2.1 Basic Checks
NTWK 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 NTWK has been increased compared to 1 year ago.
Compared to 5 years ago, NTWK has less shares outstanding
The debt/assets ratio for NTWK is higher compared to a year ago.
2.2 Solvency
NTWK has an Altman-Z score of 1.52. This is a bad value and indicates that NTWK is not financially healthy and even has some risk of bankruptcy.
NTWK has a Altman-Z score of 1.52. This is comparable to the rest of the industry: NTWK outperforms 43.06% of its industry peers.
The Debt to FCF ratio of NTWK is 1.41, which is an excellent value as it means it would take NTWK, only 1.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.41, NTWK is in the better half of the industry, outperforming 71.53% of the companies in the same industry.
NTWK has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.00, NTWK is in the better half of the industry, outperforming 67.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.17
WACC11.28%
2.3 Liquidity
A Current Ratio of 2.26 indicates that NTWK has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.26, NTWK is in the better half of the industry, outperforming 66.90% of the companies in the same industry.
NTWK has a Quick Ratio of 2.26. This indicates that NTWK is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.26, NTWK is doing good in the industry, outperforming 66.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
NTWK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -153.33%.
The Revenue has been growing slightly by 4.24% in the past year.
NTWK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.62% yearly.
EPS 1Y (TTM)-153.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2100%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y-5.49%
Revenue growth 5Y-2.62%
Sales Q2Q%2.81%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for NTWK. In the last year negative earnings were reported.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
NTWK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTWK is cheaper than 90.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTWK is valued cheaper than 98.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.51 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.83
-0.13 (-4.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners21.88%
Inst Owner Change0.02%
Ins Owners16.45%
Ins Owner Change3.18%
Market Cap33.37M
Revenue(TTM)57.25M
Net Income(TTM)264.90K
Analysts82.86
Price TargetN/A
Short Float %0.24%
Short Ratio0.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.52 | ||
| P/FCF | 5.51 | ||
| P/OCF | 5.12 | ||
| P/B | 0.94 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)-0.06
EYN/A
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.51
FCFY18.14%
OCF(TTM)0.55
OCFY19.54%
SpS5.44
BVpS3.01
TBVpS2.22
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 0.75% | ||
| ROCE | 2.8% | ||
| ROIC | 1.96% | ||
| ROICexc | 3.75% | ||
| ROICexgc | 6.83% | ||
| OM | 1.72% | ||
| PM (TTM) | 0.41% | ||
| GM | 47.87% | ||
| FCFM | 9.44% |
ROA(3y)-1.08%
ROA(5y)-0.47%
ROE(3y)-1.94%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y46.65%
ROICexc growth 3YN/A
ROICexc growth 5Y44.12%
OM growth 3YN/A
OM growth 5Y22.79%
PM growth 3YN/A
PM growth 5Y21.54%
GM growth 3Y5.93%
GM growth 5Y0.6%
F-Score7
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 31.56% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 1.01 | ||
| Cash Conversion | 252.94% | ||
| Profit Quality | 2285.24% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 1.52 |
F-Score7
WACC11.28%
ROIC/WACC0.17
Cap/Depr(3y)58.34%
Cap/Depr(5y)61.58%
Cap/Sales(3y)2.02%
Cap/Sales(5y)3.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-153.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-2100%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.24%
Revenue growth 3Y-5.49%
Revenue growth 5Y-2.62%
Sales Q2Q%2.81%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y612.96%
EBIT growth 3YN/A
EBIT growth 5Y26.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y217.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y256.97%
OCF growth 3Y-47.32%
OCF growth 5Y-35.38%
NETSOL TECHNOLOGIES INC / NTWK FAQ
What is the fundamental rating for NTWK stock?
ChartMill assigns a fundamental rating of 3 / 10 to NTWK.
Can you provide the valuation status for NETSOL TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 2 / 10 to NETSOL TECHNOLOGIES INC (NTWK). This can be considered as Overvalued.
What is the profitability of NTWK stock?
NETSOL TECHNOLOGIES INC (NTWK) has a profitability rating of 5 / 10.