2.94 USD
+0.06 (+2.08%)
We assign a fundamental rating of 3 out of 10 to NTWK. NTWK was compared to 280 industry peers in the Software industry. Both the profitability and the financial health of NTWK get a neutral evaluation. Nothing too spectacular is happening here. NTWK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
NTWK had positive earnings in the past year.
NTWK had a positive operating cash flow in the past year.
In multiple years NTWK reported negative net income over the last 5 years.
Each year in the past 5 years NTWK had a positive operating cash flow.
1.2 Ratios
NTWK's Return On Assets of 0.79% is in line compared to the rest of the industry. NTWK outperforms 59.64% of its industry peers.
NTWK has a Return On Equity of 1.38%. This is in the better half of the industry: NTWK outperforms 62.86% of its industry peers.
NTWK has a Return On Invested Capital of 4.14%. This is in the better half of the industry: NTWK outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.38% | ||
| ROIC | 4.14% |
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's Profit Margin of 0.74% is in line compared to the rest of the industry. NTWK outperforms 59.64% of its industry peers.
NTWK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.64%, NTWK is in the better half of the industry, outperforming 66.79% of the companies in the same industry.
NTWK's Operating Margin has improved in the last couple of years.
The Gross Margin of NTWK (48.00%) is worse than 70.00% 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 | 3.64% | ||
| PM (TTM) | 0.74% | ||
| GM | 48% |
OM growth 3YN/A
OM growth 5Y22.79%
PM growth 3YN/A
PM growth 5Y21.54%
GM growth 3Y5.93%
GM growth 5Y0.6%
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.
NTWK has more shares outstanding than it did 1 year ago.
NTWK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NTWK is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that NTWK is in the distress zone and has some risk of bankruptcy.
NTWK's Altman-Z score of 1.45 is in line compared to the rest of the industry. NTWK outperforms 41.07% of its industry peers.
NTWK has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.01, NTWK is doing good in the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACC0.37
WACC11.25%
2.3 Liquidity
NTWK has a Current Ratio of 2.15. This indicates that NTWK is financially healthy and has no problem in meeting its short term obligations.
NTWK's Current ratio of 2.15 is fine compared to the rest of the industry. NTWK outperforms 62.86% of its industry peers.
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 has a Quick ratio of 2.15. This is in the better half of the industry: NTWK outperforms 63.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
NTWK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.49%.
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.
The Revenue has been growing slightly by 7.70% in the past year.
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)-34.49%
EPS 3YN/A
EPS 5Y25.84%
EPS Q2Q%-2100%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y4.9%
Revenue growth 5Y3.23%
Sales Q2Q%2.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 73.50 indicates a quite expensive valuation of NTWK.
Compared to the rest of the industry, the Price/Earnings ratio of NTWK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NTWK to the average of the S&P500 Index (26.76), we can say NTWK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTWK indicates a rather cheap valuation: NTWK is cheaper than 96.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.84
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NTWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NTWK (12/12/2025, 3:59:50 PM)
2.94
+0.06 (+2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners21.32%
Inst Owner Change-5.37%
Ins Owners11.38%
Ins Owner Change3.49%
Market Cap34.69M
Revenue(TTM)66.50M
Net Income(TTM)495.20K
Analysts82.86
Price TargetN/A
Short Float %0.82%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
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 | 73.5 | ||
| Fwd PE | N/A | ||
| P/S | 0.52 | ||
| P/FCF | N/A | ||
| P/OCF | 148.83 | ||
| P/B | 0.97 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)0.04
EY1.36%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)0.02
OCFY0.67%
SpS5.64
BVpS3.03
TBVpS2.25
PEG (NY)N/A
PEG (5Y)2.84
Graham Number1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 1.38% | ||
| ROCE | 5.91% | ||
| ROIC | 4.14% | ||
| ROICexc | 9.28% | ||
| ROICexgc | 18.91% | ||
| OM | 3.64% | ||
| PM (TTM) | 0.74% | ||
| GM | 48% | ||
| 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-Score4
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 124.26% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 3.35 | ||
| Cash Conversion | 6.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 1.45 |
F-Score4
WACC11.25%
ROIC/WACC0.37
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)-34.49%
EPS 3YN/A
EPS 5Y25.84%
EPS Q2Q%-2100%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y4.9%
Revenue growth 5Y3.23%
Sales Q2Q%2.81%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.7%
EBIT growth 3YN/A
EBIT growth 5Y26.76%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-189.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-90.16%
OCF growth 3Y-47.32%
OCF growth 5Y-35.38%
NETSOL TECHNOLOGIES INC / NTWK FAQ
What is the fundamental rating for NTWK stock?
ChartMill assigns a fundamental rating of 3 / 10 to NTWK.
Can you provide the valuation status for NETSOL TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 1 / 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 5 / 10.
What is the valuation of NETSOL TECHNOLOGIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NETSOL TECHNOLOGIES INC (NTWK) is 73.5 and the Price/Book (PB) ratio is 0.97.