NETSOL TECHNOLOGIES INC (NTWK) Fundamental Analysis & Valuation

NASDAQ:NTWK • US64115A4022

Current stock price

3.52 USD
0 (0%)
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3.52 USD
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This NTWK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. NTWK Profitability Analysis

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5M -5M 10M 15M

1.2 Ratios

  • With a decent Return On Assets value of 3.01%, NTWK is doing good in the industry, outperforming 68.35% of the companies in the same industry.
  • NTWK has a Return On Equity of 5.26%. This is in the better half of the industry: NTWK outperforms 68.35% of its industry peers.
  • With a decent Return On Invested Capital value of 6.91%, NTWK is doing good in the industry, outperforming 76.98% of the companies in the same industry.
Industry RankSector Rank
ROA 3.01%
ROE 5.26%
ROIC 6.91%
ROA(3y)-1.08%
ROA(5y)-0.47%
ROE(3y)-1.94%
ROE(5y)-0.89%
ROIC(3y)N/A
ROIC(5y)N/A
NTWK Yearly ROA, ROE, ROICNTWK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10

1.3 Margins

  • The Profit Margin of NTWK (2.71%) is better than 62.95% of its industry peers.
  • NTWK's Profit Margin has improved in the last couple of years.
  • The Operating Margin of NTWK (6.03%) is better than 69.78% of its industry peers.
  • NTWK's Operating Margin has improved in the last couple of years.
  • NTWK has a Gross Margin of 48.77%. This is in the lower half of the industry: NTWK underperforms 70.14% 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 RankSector Rank
OM 6.03%
PM (TTM) 2.71%
GM 48.77%
OM growth 3YN/A
OM growth 5Y22.79%
PM growth 3YN/A
PM growth 5Y21.54%
GM growth 3Y5.93%
GM growth 5Y0.6%
NTWK Yearly Profit, Operating, Gross MarginsNTWK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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4

2. NTWK Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTWK is destroying value.
  • Compared to 1 year ago, NTWK has more shares outstanding
  • The number of shares outstanding for NTWK has been reduced compared to 5 years ago.
  • The debt/assets ratio for NTWK is higher compared to a year ago.
NTWK Yearly Shares OutstandingNTWK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2M 4M 6M 8M 10M
NTWK Yearly Total Debt VS Total AssetsNTWK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M

2.2 Solvency

  • NTWK has an Altman-Z score of 1.80. This is a bad value and indicates that NTWK is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 1.80, NTWK perfoms like the industry average, outperforming 53.60% of the companies in the same industry.
  • NTWK has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
  • NTWK has a better Debt to Equity ratio (0.01) than 64.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 1.8
ROIC/WACC0.62
WACC11.17%
NTWK Yearly LT Debt VS Equity VS FCFNTWK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M 40M 60M

2.3 Liquidity

  • NTWK has a Current Ratio of 2.32. This indicates that NTWK is financially healthy and has no problem in meeting its short term obligations.
  • NTWK has a better Current ratio (2.32) than 64.39% of its industry peers.
  • NTWK has a Quick Ratio of 2.32. 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 2.32, NTWK is in the better half of the industry, outperforming 65.11% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.32
Quick Ratio 2.32
NTWK Yearly Current Assets VS Current LiabilitesNTWK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NTWK Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 324.62% over the past year.
  • NTWK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.84% yearly.
  • NTWK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.45%.
  • The Revenue has been growing slightly by 3.23% on average over the past years.
EPS 1Y (TTM)324.62%
EPS 3YN/A
EPS 5Y25.84%
EPS Q2Q%120%
Revenue 1Y (TTM)12.45%
Revenue growth 3Y4.9%
Revenue growth 5Y3.23%
Sales Q2Q%21.04%

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
NTWK Yearly EPS VS EstimatesNTWK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2019 2022 0 0.2 -0.2 0.4 -0.4 0.6 -0.6

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2

4. NTWK Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 22.00 indicates a rather expensive valuation of NTWK.
  • 66.91% of the companies in the same industry are more expensive than NTWK, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. NTWK is around the same levels.
Industry RankSector Rank
PE 22
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 94.60% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.81
NTWK Per share dataNTWK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4 5

4.3 Compensation for Growth

  • NTWK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2YN/A
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NTWK Dividend Analysis

5.1 Amount

  • No dividends for NTWK!.
Industry RankSector Rank
Dividend Yield 0%

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NTWK Fundamentals: All Metrics, Ratios and Statistics

NETSOL TECHNOLOGIES INC

NASDAQ:NTWK (3/20/2026, 4:30:02 PM)

After market: 3.52 0 (0%)

3.52

0 (0%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-12
Earnings (Next)05-12
Inst Owners24.33%
Inst Owner Change13.71%
Ins Owners11.46%
Ins Owner Change2.22%
Market Cap41.61M
Revenue(TTM)69.77M
Net Income(TTM)1.89M
Analysts82.86
Price TargetN/A
Short Float %0.15%
Short Ratio0.4
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP-16.24%
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 22
Fwd PE N/A
P/S 0.6
P/FCF N/A
P/OCF 65.78
P/B 1.16
P/tB 1.56
EV/EBITDA 5.81
EPS(TTM)0.16
EY4.55%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.09
FCFYN/A
OCF(TTM)0.05
OCFY1.52%
SpS5.9
BVpS3.04
TBVpS2.25
PEG (NY)N/A
PEG (5Y)0.85
Graham Number3.31
Profitability
Industry RankSector Rank
ROA 3.01%
ROE 5.26%
ROCE 9.86%
ROIC 6.91%
ROICexc 12%
ROICexgc 19.32%
OM 6.03%
PM (TTM) 2.71%
GM 48.77%
FCFM N/A
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
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Debt/EBITDA 0.06
Cap/Depr 123.81%
Cap/Sales 2.39%
Interest Coverage 5.21
Cash Conversion 11.38%
Profit Quality N/A
Current Ratio 2.32
Quick Ratio 2.32
Altman-Z 1.8
F-Score6
WACC11.17%
ROIC/WACC0.62
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)324.62%
EPS 3YN/A
EPS 5Y25.84%
EPS Q2Q%120%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.45%
Revenue growth 3Y4.9%
Revenue growth 5Y3.23%
Sales Q2Q%21.04%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y384.5%
EBIT growth 3YN/A
EBIT growth 5Y26.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2793.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-31.6%
OCF growth 3Y-47.32%
OCF growth 5Y-35.38%

NETSOL TECHNOLOGIES INC / NTWK Fundamental Analysis FAQ

What is the fundamental rating for NTWK stock?

ChartMill assigns a fundamental rating of 4 / 10 to NTWK.


What is the valuation status of NETSOL TECHNOLOGIES INC (NTWK) stock?

ChartMill assigns a valuation rating of 2 / 10 to NETSOL TECHNOLOGIES INC (NTWK). This can be considered as Overvalued.


What is the profitability of NTWK stock?

NETSOL TECHNOLOGIES INC (NTWK) has a profitability rating of 6 / 10.


What are the PE and PB ratios of NETSOL TECHNOLOGIES INC (NTWK) stock?

The Price/Earnings (PE) ratio for NETSOL TECHNOLOGIES INC (NTWK) is 22 and the Price/Book (PB) ratio is 1.16.