NETSOL TECHNOLOGIES INC(NASDAQ:NTWK) stock Fundamental Analysis

Fundamental Rating

NTWK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 283 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.

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1. Profitability

1.1 Basic Checks

In the past year NTWK has reported negative net income.

In the past year NTWK had a positive cash flow from operations.

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.

1.2 Ratios

NTWK's Return On Assets of -1.41% is fine compared to the rest of the industry. NTWK outperforms 60.78% of its industry peers.

NTWK has a better Return On Equity (-2.45%) than 61.84% of its industry peers.

Looking at the Return On Invested Capital, with a value of 1.43%, NTWK is in the better half of the industry, outperforming 68.90% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-1.41%
ROE	-2.45%
ROIC	1.43%

ROA(3y)-3.03%

ROA(5y)-1.19%

ROE(3y)-5.14%

ROE(5y)-2.11%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

NTWK's Profit Margin has declined in the last couple of years.

Looking at the Operating Margin, with a value of 1.40%, NTWK is in the better half of the industry, outperforming 66.43% of the companies in the same industry.

In the last couple of years the Operating Margin of NTWK has declined.

NTWK has a worse Gross Margin (47.43%) than 68.90% of its industry peers.

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	1.4%
PM (TTM)	N/A
GM	47.43%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTWK is destroying value.

NTWK has more shares outstanding than it did 1 year ago.

The number of shares outstanding for NTWK has been reduced compared to 5 years ago.

Compared to 1 year ago, NTWK has an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.17, we must say that NTWK is in the distress zone and has some risk of bankruptcy.

NTWK has a Altman-Z score (1.17) which is in line with its industry peers.

The Debt to FCF ratio of NTWK is 4.10, which is a neutral value as it means it would take NTWK, 4.10 years of fcf income to pay off all of its debts.

NTWK's Debt to FCF ratio of 4.10 is fine compared to the rest of the industry. NTWK outperforms 61.48% of its industry peers.

NTWK has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.

NTWK has a better Debt to Equity ratio (0.00) than 66.43% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	4.1
Altman-Z	1.17

ROIC/WACC0.11

WACC12.46%

2.3 Liquidity

A Current Ratio of 2.15 indicates that NTWK has no problem at all paying its short term obligations.

Looking at the Current ratio, with a value of 2.15, NTWK is in the better half of the industry, outperforming 63.60% of the companies in the same industry.

NTWK has a Quick Ratio of 2.15. This indicates that NTWK is financially healthy and has no problem in meeting its short term obligations.

NTWK's Quick ratio of 2.15 is fine compared to the rest of the industry. NTWK outperforms 64.31% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.15
Quick Ratio	2.15

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 60.73% over the past year.

NTWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.52% yearly.

The Revenue has grown by 9.28% in the past year. This is quite good.

NTWK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.97% yearly.

EPS 1Y (TTM)60.73%

EPS 3Y-26.36%

EPS 5Y-39.52%

EPS Q2Q%-350%

Revenue 1Y (TTM)9.28%

Revenue growth 3Y3.78%

Revenue growth 5Y-1.97%

Sales Q2Q%1.97%

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.

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4. Valuation

4.1 Price/Earnings Ratio

NTWK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

95.41% of the companies in the same industry are more expensive than NTWK, based on the Enterprise Value to EBITDA ratio.

NTWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTWK is cheaper than 91.52% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	12.69
EV/EBITDA	6.83

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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5. Dividend

5.1 Amount

NTWK does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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NETSOL TECHNOLOGIES INC

NASDAQ:NTWK (5/8/2025, 2:57:13 PM)

2.35

-0.1 (-4.08%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)02-13 2025-02-13/bmo

Earnings (Next)05-08 2025-05-08

Inst Owners22.96%

Inst Owner Change0%

Ins Owners16.59%

Ins Owner Change3.24%

Market Cap27.42M

Analysts82.86

Price TargetN/A

Short Float %0.11%

Short Ratio0.47

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	0.44
P/FCF	12.69
P/OCF	10.25
P/B	0.81
P/tB	1.11
EV/EBITDA	6.83

EPS(TTM)-0.07

EYN/A

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)0.19

FCFY7.88%

OCF(TTM)0.23

OCFY9.75%

SpS5.32

BVpS2.91

TBVpS2.11

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-1.41%
ROE	-2.45%
ROCE	2.22%
ROIC	1.43%
ROICexc	3.14%
ROICexgc	6.56%
OM	1.4%
PM (TTM)	N/A
GM	47.43%
FCFM	3.48%

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-Score6

Asset Turnover1.05

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	4.1
Debt/EBITDA	0.04
Cap/Depr	34.18%
Cap/Sales	0.83%
Interest Coverage	0.62
Cash Conversion	112.88%
Profit Quality	N/A
Current Ratio	2.15
Quick Ratio	2.15
Altman-Z	1.17

F-Score6

WACC12.46%

ROIC/WACC0.11

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)60.73%

EPS 3Y-26.36%

EPS 5Y-39.52%

EPS Q2Q%-350%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)9.28%

Revenue growth 3Y3.78%

Revenue growth 5Y-1.97%

Sales Q2Q%1.97%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y135.28%

EBIT growth 3Y8.7%

EBIT growth 5Y-12.55%

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-54.01%

FCF growth 3Y-43.37%

FCF growth 5Y1.7%

OCF growth 1Y-65.67%

OCF growth 3Y-43.02%

OCF growth 5Y-10.01%

NETSOL TECHNOLOGIES INC (NTWK) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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