NTWK Fundamental Analysis - NETSOL TECHNOLOGIES INC

Fundamental Rating

Overall NTWK gets a fundamental rating of 5 out of 10. We evaluated NTWK against 285 industry peers in the Software industry. NTWK has an average financial health and profitability rating. NTWK is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year NTWK was profitable.

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

The reported net income has been mixed in the past 5 years: NTWK reported negative net income in multiple years.

Each year in the past 5 years NTWK had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.46%, NTWK is in the better half of the industry, outperforming 61.75% of the companies in the same industry.

Looking at the Return On Equity, with a value of 0.75%, NTWK is in the better half of the industry, outperforming 63.16% of the companies in the same industry.

Looking at the Return On Invested Capital, with a value of 1.96%, NTWK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.

		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 better Profit Margin (0.41%) than 61.05% of its industry peers.

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

NTWK has a better Operating Margin (1.72%) than 62.46% of its industry peers.

NTWK's Operating Margin has improved in the last couple of years.

NTWK has a worse Gross Margin (47.87%) than 69.12% of its industry peers.

NTWK's Gross Margin has been stable in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

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

Compared to 1 year ago, NTWK has a worse debt to assets ratio.

2.2 Solvency

NTWK has an Altman-Z score of 2.00. This is not the best score and indicates that NTWK is in the grey zone with still only limited risk for bankruptcy at the moment.

NTWK has a Altman-Z score (2.00) which is comparable to the rest of the industry.

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.

NTWK has a Debt to FCF ratio of 1.41. This is in the better half of the industry: NTWK outperforms 72.28% of its industry peers.

A Debt/Equity ratio of 0.00 indicates that NTWK is not too dependend on debt financing.

The Debt to Equity ratio of NTWK (0.00) is better than 67.72% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	1.41
Altman-Z	2

ROIC/WACC0.17

WACC11.25%

2.3 Liquidity

A Current Ratio of 2.26 indicates that NTWK has no problem at all paying its short term obligations.

The Current ratio of NTWK (2.26) is better than 65.96% of its industry peers.

A Quick Ratio of 2.26 indicates that NTWK has no problem at all paying its short term obligations.

NTWK's Quick ratio of 2.26 is fine compared to the rest of the industry. NTWK outperforms 65.96% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.26
Quick Ratio	2.26

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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

NTWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 332.98%, which is quite impressive.

Measured over the past years, NTWK shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.84% on average per year.

NTWK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.65%.

Measured over the past years, NTWK shows a small growth in Revenue. The Revenue has been growing by 3.23% on average per year.

EPS 1Y (TTM)332.98%

EPS 3YN/A

EPS 5Y25.84%

EPS Q2Q%3112.33%

Revenue 1Y (TTM)7.65%

Revenue growth 3Y4.9%

Revenue growth 5Y3.23%

Sales Q2Q%11.92%

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

The Price/Earnings ratio is 18.04, which indicates a rather expensive current valuation of NTWK.

Compared to the rest of the industry, the Price/Earnings ratio of NTWK indicates a rather cheap valuation: NTWK is cheaper than 80.35% of the companies listed in the same industry.

When comparing the Price/Earnings ratio of NTWK to the average of the S&P500 Index (27.69), we can say NTWK is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	18.04
Fwd PE	N/A

4.2 Price Multiples

83.16% of the companies in the same industry are more expensive than NTWK, based on the Enterprise Value to EBITDA ratio.

96.14% of the companies in the same industry are more expensive than NTWK, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	8.78
EV/EBITDA	16.66

4.3 Compensation for Growth

The decent profitability rating of NTWK may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)0.7

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for NTWK!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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NETSOL TECHNOLOGIES INC

NASDAQ:NTWK (10/20/2025, 8:06:29 PM)

4.51

+0.01 (+0.22%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)09-30 2025-09-30

Earnings (Next)11-06 2025-11-06

Inst Owners21.88%

Inst Owner Change0%

Ins Owners16.45%

Ins Owner Change3.18%

Market Cap53.17M

Analysts82.86

Price TargetN/A

Short Float %0.85%

Short Ratio0.76

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	18.04
Fwd PE	N/A
P/S	0.83
P/FCF	8.78
P/OCF	8.16
P/B	1.5
P/tB	2.03
EV/EBITDA	16.66

EPS(TTM)0.25

EY5.54%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)0.51

FCFY11.38%

OCF(TTM)0.55

OCFY12.26%

SpS5.44

BVpS3.01

TBVpS2.22

PEG (NY)N/A

PEG (5Y)0.7

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

ROICexcg growth 3YN/A

ROICexcg 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	2

F-Score7

WACC11.25%

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)332.98%

EPS 3YN/A

EPS 5Y25.84%

EPS Q2Q%3112.33%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)7.65%

Revenue growth 3Y4.9%

Revenue growth 5Y3.23%

Sales Q2Q%11.92%

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) 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

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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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