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NETSOL TECHNOLOGIES INC (NTWK) Stock Fundamental Analysis

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

3.16  +0.05 (+1.61%)

Fundamental Rating

4

Taking everything into account, NTWK scores 4 out of 10 in our fundamental rating. NTWK was compared to 282 industry peers in the Software industry. NTWK has an average financial health and profitability rating. 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

NTWK had positive earnings in the past year.
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

Looking at the Return On Assets, with a value of 0.46%, NTWK is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
NTWK has a Return On Equity of 0.75%. This is in the better half of the industry: NTWK outperforms 67.38% of its industry peers.
NTWK's Return On Invested Capital of 1.81% is fine compared to the rest of the industry. NTWK outperforms 68.79% 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 has a Profit Margin of 0.41%. This is in the better half of the industry: NTWK outperforms 65.25% 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 65.96% of its industry peers.
NTWK's Operating Margin has declined in the last couple of years.
NTWK's Gross Margin of 47.87% is on the low side compared to the rest of the industry. NTWK is outperformed by 69.50% of its industry peers.
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.
Compared to 1 year ago, NTWK has more shares outstanding
Compared to 5 years ago, NTWK has less shares outstanding
NTWK has a better debt/assets ratio than last year.
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 1.56. 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 (1.56) 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 has a better Debt to FCF ratio (1.41) than 71.99% 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 67.02% of its industry peers.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.41
Altman-Z 1.56
ROIC/WACC0.18
WACC10.11%
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

A Current Ratio of 2.26 indicates that NTWK has no problem at all paying its short term obligations.
NTWK's Current ratio of 2.26 is fine compared to the rest of the industry. NTWK outperforms 66.67% of its industry peers.
A Quick Ratio of 2.26 indicates that NTWK has no problem at all paying 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 67.38% 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.
Measured over the past years, NTWK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -39.52% on average per year.
NTWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.19%.
Measured over the past years, NTWK shows a decrease in Revenue. The Revenue has been decreasing by -1.97% on average per year.
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

With a Price/Earnings ratio of 158.00, NTWK can be considered very expensive at the moment.
NTWK's Price/Earnings ratio is in line with the industry average.
NTWK is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 158
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 cheaply inside the industry as 91.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NTWK is valued cheaply inside the industry as 97.52% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.11
EV/EBITDA 10.16
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 (7/1/2025, 8:53:37 PM)

3.16

+0.05 (+1.61%)

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 Owners22.38%
Inst Owner Change-1.79%
Ins Owners16.06%
Ins Owner Change0.65%
Market Cap37.00M
Analysts82.86
Price TargetN/A
Short Float %0.04%
Short Ratio0.26
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 158
Fwd PE N/A
P/S 0.58
P/FCF 6.11
P/OCF 5.68
P/B 1.04
P/tB 1.41
EV/EBITDA 10.16
EPS(TTM)0.02
EY0.63%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.52
FCFY16.36%
OCF(TTM)0.56
OCFY17.62%
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 1.56
F-Score8
WACC10.11%
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%