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NETSOL TECHNOLOGIES INC (NTWK) Stock Fundamental Analysis

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

4.14  -0.02 (-0.48%)

Fundamental Rating

4

NTWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. NTWK is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. NTWK does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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4

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.
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

NTWK's Return On Assets of 0.46% is fine compared to the rest of the industry. NTWK outperforms 63.96% of its industry peers.
With a decent Return On Equity value of 0.75%, NTWK is doing good in the industry, outperforming 65.02% of the companies in the same industry.
The Return On Invested Capital of NTWK (1.81%) is better than 68.20% 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

The Profit Margin of NTWK (0.41%) is better than 63.96% of its industry peers.
NTWK's Profit Margin has declined in the last couple of years.
NTWK's Operating Margin of 1.72% is fine compared to the rest of the industry. NTWK outperforms 64.31% of its industry peers.
In the last couple of years the Operating Margin of NTWK has declined.
With a Gross Margin value of 47.87%, NTWK is not doing good in the industry: 69.26% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NTWK has remained more or less at the same level.
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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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTWK 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
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

An Altman-Z score of 1.89 indicates that NTWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.89, NTWK is in line with its industry, outperforming 46.64% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 1.41, NTWK is in the better half of the industry, outperforming 71.02% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that NTWK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, NTWK is in the better half of the industry, outperforming 66.43% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.41
Altman-Z 1.89
ROIC/WACC0.14
WACC12.61%
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.
The Current ratio of NTWK (2.26) is better than 65.72% of its industry peers.
A Quick Ratio of 2.26 indicates that NTWK has no problem at all paying its short term obligations.
The Quick ratio of NTWK (2.26) is better than 66.08% of its industry peers.
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.
NTWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -39.52% yearly.
Looking at the last year, NTWK shows a quite strong growth in Revenue. The Revenue has grown by 9.19% in the last year.
The Revenue has been decreasing by -1.97% on average over the past years.
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

A Price/Earnings ratio of 207.00 indicates a quite expensive valuation of NTWK.
NTWK's Price/Earnings ratio is in line with the industry average.
NTWK is valuated expensively when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 207
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 86.22% of the companies in the same industry.
NTWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTWK is cheaper than 96.47% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.01
EV/EBITDA 14.93
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

No dividends for NTWK!.
Industry RankSector Rank
Dividend Yield N/A

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NETSOL TECHNOLOGIES INC

NASDAQ:NTWK (8/15/2025, 8:00:01 PM)

4.14

-0.02 (-0.48%)

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 Owners22.6%
Inst Owner Change0.64%
Ins Owners16.45%
Ins Owner Change2.87%
Market Cap48.48M
Analysts82.86
Price TargetN/A
Short Float %0.27%
Short Ratio0.83
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 207
Fwd PE N/A
P/S 0.76
P/FCF 8.01
P/OCF 7.44
P/B 1.37
P/tB 1.85
EV/EBITDA 14.93
EPS(TTM)0.02
EY0.48%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.52
FCFY12.49%
OCF(TTM)0.56
OCFY13.45%
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 1.89
F-Score8
WACC12.61%
ROIC/WACC0.14
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%