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NETSOL TECHNOLOGIES INC (NTWK) Stock Fundamental Analysis

NASDAQ:NTWK - Nasdaq - US64115A4022 - Common Stock - Currency: USD

2.93  +0.02 (+0.69%)

Fundamental Rating

4

Taking everything into account, NTWK scores 4 out of 10 in our fundamental rating. NTWK was compared to 283 industry peers in the Software industry. NTWK has an average financial health and profitability rating. NTWK is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year NTWK was profitable.
NTWK had a positive operating cash flow in the past year.
In multiple years NTWK reported negative net income over the last 5 years.
NTWK had a positive operating cash flow in each of the past 5 years.
NTWK Yearly Net Income VS EBIT VS OCF VS FCFNTWK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5M -5M 10M 15M

1.2 Ratios

With a decent Return On Assets value of 0.46%, NTWK is doing good in the industry, outperforming 66.78% of the companies in the same industry.
With a decent Return On Equity value of 0.75%, NTWK is doing good in the industry, outperforming 67.84% of the companies in the same industry.
NTWK has a better Return On Invested Capital (1.81%) than 69.61% of its industry peers.
Industry RankSector Rank
ROA 0.46%
ROE 0.75%
ROIC 1.81%
ROA(3y)-3.03%
ROA(5y)-1.19%
ROE(3y)-5.14%
ROE(5y)-2.11%
ROIC(3y)N/A
ROIC(5y)N/A
NTWK Yearly ROA, ROE, ROICNTWK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

NTWK's Profit Margin of 0.41% is fine compared to the rest of the industry. NTWK outperforms 65.72% of its industry peers.
In the last couple of years the Profit Margin of NTWK has declined.
NTWK has a Operating Margin of 1.72%. This is in the better half of the industry: NTWK outperforms 66.78% of its industry peers.
In the last couple of years the Operating Margin of NTWK has declined.
Looking at the Gross Margin, with a value of 47.87%, NTWK is doing worse than 69.26% of the companies in the same industry.
NTWK's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 1.72%
PM (TTM) 0.41%
GM 47.87%
OM growth 3Y4.74%
OM growth 5Y-10.79%
PM growth 3Y-29.95%
PM growth 5Y-38.49%
GM growth 3Y-0.19%
GM growth 5Y-1.25%
NTWK Yearly Profit, Operating, Gross MarginsNTWK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTWK is destroying value.
NTWK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NTWK has less shares outstanding
Compared to 1 year ago, NTWK has an improved debt to assets ratio.
NTWK Yearly Shares OutstandingNTWK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
NTWK Yearly Total Debt VS Total AssetsNTWK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M

2.2 Solvency

NTWK has an Altman-Z score of 1.51. This is a bad value and indicates that NTWK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NTWK (1.51) is comparable to the rest of the industry.
NTWK has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
NTWK's Debt to FCF ratio of 1.41 is fine compared to the rest of the industry. NTWK outperforms 72.44% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that NTWK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.00, NTWK is doing good in the industry, outperforming 67.84% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.41
Altman-Z 1.51
ROIC/WACC0.18
WACC10.14%
NTWK Yearly LT Debt VS Equity VS FCFNTWK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M

2.3 Liquidity

NTWK has a Current Ratio of 2.26. This indicates that NTWK is financially healthy and has no problem in meeting its short term obligations.
NTWK has a Current ratio of 2.26. This is in the better half of the industry: NTWK outperforms 66.43% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.26, NTWK is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.26
Quick Ratio 2.26
NTWK Yearly Current Assets VS Current LiabilitesNTWK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M

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2

3. Growth

3.1 Past

NTWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.42%, which is quite impressive.
The earnings per share for NTWK have been decreasing by -39.52% on average. This is quite bad
Looking at the last year, NTWK shows a quite strong growth in Revenue. The Revenue has grown by 9.19% in the last year.
NTWK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.97% yearly.
EPS 1Y (TTM)105.42%
EPS 3Y-26.36%
EPS 5Y-39.52%
EPS Q2Q%300%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y3.78%
Revenue growth 5Y-1.97%
Sales Q2Q%13.38%

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.
NTWK Yearly Revenue VS EstimatesNTWK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
NTWK Yearly EPS VS EstimatesNTWK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2019 2022 0 0.5 -0.5 -1

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 146.50, which means the current valuation is very expensive for NTWK.
NTWK's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, NTWK is valued quite expensively.
Industry RankSector Rank
PE 146.5
Fwd PE N/A
NTWK Price Earnings VS Forward Price EarningsNTWK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, NTWK is valued cheaper than 91.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTWK is valued cheaper than 98.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.67
EV/EBITDA 9.34
NTWK Per share dataNTWK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

NTWK does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NETSOL TECHNOLOGIES INC

NASDAQ:NTWK (6/5/2025, 8:00:02 PM)

2.93

+0.02 (+0.69%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)09-10 2025-09-10
Inst Owners22.96%
Inst Owner Change-1.79%
Ins Owners16.59%
Ins Owner Change2.81%
Market Cap34.31M
Analysts82.86
Price TargetN/A
Short Float %0.45%
Short Ratio2.09
Dividend
Industry RankSector 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 RankSector Rank
PE 146.5
Fwd PE N/A
P/S 0.54
P/FCF 5.67
P/OCF 5.26
P/B 0.97
P/tB 1.31
EV/EBITDA 9.34
EPS(TTM)0.02
EY0.68%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.52
FCFY17.64%
OCF(TTM)0.56
OCFY19%
SpS5.48
BVpS3.03
TBVpS2.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.46%
ROE 0.75%
ROCE 2.8%
ROIC 1.81%
ROICexc 3.45%
ROICexgc 6.28%
OM 1.72%
PM (TTM) 0.41%
GM 47.87%
FCFM 9.44%
ROA(3y)-3.03%
ROA(5y)-1.19%
ROE(3y)-5.14%
ROE(5y)-2.11%
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
ROICexcg growth 3Y20.02%
ROICexcg growth 5Y7.2%
ROICexc growth 3Y21.24%
ROICexc growth 5Y3.71%
OM growth 3Y4.74%
OM growth 5Y-10.79%
PM growth 3Y-29.95%
PM growth 5Y-38.49%
GM growth 3Y-0.19%
GM growth 5Y-1.25%
F-Score8
Asset Turnover1.1
Health
Industry RankSector 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 1.51
F-Score8
WACC10.14%
ROIC/WACC0.18
Cap/Depr(3y)49.69%
Cap/Depr(5y)50.09%
Cap/Sales(3y)2.84%
Cap/Sales(5y)3.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.42%
EPS 3Y-26.36%
EPS 5Y-39.52%
EPS Q2Q%300%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.19%
Revenue growth 3Y3.78%
Revenue growth 5Y-1.97%
Sales Q2Q%13.38%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y612.96%
EBIT growth 3Y8.7%
EBIT growth 5Y-12.55%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y350.15%
FCF growth 3Y-43.37%
FCF growth 5Y1.7%
OCF growth 1Y7142.67%
OCF growth 3Y-43.02%
OCF growth 5Y-10.01%