Loading...

NetSol Technologies

DB:NS9B
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NS9B
DB
$68M
Market Cap
  1. Home
  2. DE
  3. Software
Company description

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. The last earnings update was 10 days ago. More info.


Add to Portfolio Compare Print
NS9B Share Price and Events
7 Day Returns
0%
DB:NS9B
-2.4%
DE Software
-3.2%
DE Market
1 Year Returns
20.1%
DB:NS9B
15.1%
DE Software
-11.6%
DE Market
NS9B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NetSol Technologies (NS9B) 0% 3.4% 3.6% 20.1% 18.6% 121.4%
DE Software -2.4% 9.4% 17.5% 15.1% 58.2% 105.9%
DE Market -3.2% -5.1% 0.3% -11.6% 5.3% 5.9%
1 Year Return vs Industry and Market
  • NS9B outperformed the Software industry which returned 15.1% over the past year.
  • NS9B outperformed the Market in Germany which returned -11.6% over the past year.
Price Volatility
NS9B
Industry
5yr Volatility vs Market

Value

 Is NetSol Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NetSol Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NetSol Technologies.

DB:NS9B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:NS9B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.148 (1 + (1- 21%) (12.97%))
1.178
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.18
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.178 * 5.96%)
7.25%

Discounted Cash Flow Calculation for DB:NS9B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NetSol Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:NS9B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.25%)
2019 19.79 Est @ 89.46% 18.45
2020 32.20 Est @ 62.69% 27.99
2021 46.35 Est @ 43.95% 37.57
2022 60.64 Est @ 30.83% 45.84
2023 73.77 Est @ 21.65% 51.99
2024 85.01 Est @ 15.23% 55.86
2025 94.12 Est @ 10.73% 57.67
2026 101.25 Est @ 7.58% 57.85
2027 106.69 Est @ 5.37% 56.84
2028 110.78 Est @ 3.83% 55.02
Present value of next 10 years cash flows $465.10
DB:NS9B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $110.78 × (1 + 0.23%) ÷ (7.25% – 0.23%)
$1,581.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,581.60 ÷ (1 + 7.25%)10
$785.59
DB:NS9B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $465.10 + $785.59
$1,250.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,250.69 / 11.67
$107.14
DB:NS9B Discount to Share Price
Calculation Result
Value per share (EUR) From above. €115.03
Current discount Discount to share price of €6.26
= -1 x (€6.26 - €115.03) / €115.03
94.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price NetSol Technologies is available for.
Intrinsic value
>50%
Share price is €6.26 vs Future cash flow value of €115.03
Current Discount Checks
For NetSol Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NetSol Technologies's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NetSol Technologies's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NetSol Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NetSol Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:NS9B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.54
NasdaqCM:NTWK Share Price ** NasdaqCM (2019-05-08) in USD $5.83
Germany Software Industry PE Ratio Median Figure of 20 Publicly-Listed Software Companies 37.19x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NetSol Technologies.

DB:NS9B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:NTWK Share Price ÷ EPS (both in USD)

= 5.83 ÷ 0.54

10.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetSol Technologies is good value based on earnings compared to the DE Software industry average.
  • NetSol Technologies is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does NetSol Technologies's expected growth come at a high price?
Raw Data
DB:NS9B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
15.7%per year
Germany Software Industry PEG Ratio Median Figure of 16 Publicly-Listed Software Companies 2.06x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for NetSol Technologies, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on NetSol Technologies's assets?
Raw Data
DB:NS9B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.06
NasdaqCM:NTWK Share Price * NasdaqCM (2019-05-08) in USD $5.83
Germany Software Industry PB Ratio Median Figure of 34 Publicly-Listed Software Companies 2.82x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.76x
DB:NS9B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:NTWK Share Price ÷ Book Value per Share (both in USD)

= 5.83 ÷ 5.06

1.15x

* Primary Listing of NetSol Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetSol Technologies is good value based on assets compared to the DE Software industry average.
X
Value checks
We assess NetSol Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. NetSol Technologies has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is NetSol Technologies expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover NetSol Technologies, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NetSol Technologies expected to grow at an attractive rate?
  • NetSol Technologies's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • NetSol Technologies's earnings growth is expected to exceed the Germany market average.
  • Unable to compare NetSol Technologies's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:NS9B Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:NS9B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 15.7%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 22.9%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:NS9B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:NS9B Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
DB:NS9B Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 67 13 6
2018-12-31 67 21 8
2018-09-30 65 20 6
2018-06-30 61 16 4
2018-03-31 59 5 0
2017-12-31 60 -2 -2
2017-09-30 61 -3 -5
2017-06-30 65 0 -5
2017-03-31 70 -1 0
2016-12-31 68 0 0
2016-09-30 68 5 3
2016-06-30 65 2 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NetSol Technologies's earnings are expected to grow by 15.7% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if NetSol Technologies is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:NS9B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from NetSol Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NS9B Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
DB:NS9B Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.54
2018-12-31 0.69
2018-09-30 0.50
2018-06-30 0.38
2018-03-31 0.00
2017-12-31 -0.19
2017-09-30 -0.45
2017-06-30 -0.46
2017-03-31 0.02
2016-12-31 0.04
2016-09-30 0.33
2016-06-30 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NetSol Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NetSol Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NetSol Technologies has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NetSol Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NetSol Technologies's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NetSol Technologies has delivered over 20% year on year earnings growth in the past 5 years.
  • NetSol Technologies's 1-year earnings growth exceeds its 5-year average (106509.3% vs 61.4%)
  • NetSol Technologies's earnings growth has exceeded the DE Software industry average in the past year (106509.3% vs 7.2%).
Earnings and Revenue History
NetSol Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NetSol Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:NS9B Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 67.15 6.26 24.72 1.54
2018-12-31 67.06 7.86 25.04 1.22
2018-09-30 64.51 5.64 24.94 0.99
2018-06-30 60.93 4.31 24.34 0.85
2018-03-31 58.79 0.01 24.99 0.68
2017-12-31 59.70 -2.16 25.75 0.58
2017-09-30 61.11 -4.96 26.44 0.49
2017-06-30 65.37 -4.98 27.90 0.39
2017-03-31 69.96 0.23 27.18 0.41
2016-12-31 67.99 0.38 26.11 0.44
2016-09-30 68.32 3.43 24.85 0.47
2016-06-30 64.55 3.40 22.79 0.49
2016-03-31 60.87 0.61 20.29 0.45
2015-12-31 57.97 -1.88 20.29 0.40
2015-09-30 54.13 -4.12 20.40 0.36
2015-06-30 51.05 -5.55 20.30 0.31
2015-03-31 45.20 -12.17 22.70 0.30
2014-12-31 41.49 -13.37 21.56 0.28
2014-09-30 37.69 -13.46 19.96 0.26
2014-06-30 36.38 -12.51 19.62 0.25
2014-03-31 41.81 -1.74 17.16 0.34
2013-12-31 44.44 4.15 15.71 0.27
2013-09-30 47.70 7.82 15.34 0.22
2013-06-30 49.85 9.65 14.38 0.16
2013-03-31 49.21 8.11 14.19
2012-12-31 47.82 6.74 14.24
2012-09-30 44.62 4.83 13.96
2012-06-30 39.78 2.45 13.26

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NetSol Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NetSol Technologies used its assets more efficiently than the DE Software industry average last year based on Return on Assets.
  • NetSol Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NetSol Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NetSol Technologies has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NetSol Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NetSol Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NetSol Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NetSol Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NetSol Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NetSol Technologies Company Filings, last reported 1 month ago.

DB:NS9B Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 69.70 8.83 17.01
2018-12-31 67.91 7.97 20.32
2018-09-30 69.45 8.73 20.44
2018-06-30 76.94 8.93 22.09
2018-03-31 78.81 9.40 12.71
2017-12-31 76.42 10.38 10.00
2017-09-30 77.29 10.32 8.55
2017-06-30 78.19 10.59 14.17
2017-03-31 80.55 6.15 8.45
2016-12-31 77.49 4.87 9.51
2016-09-30 78.22 4.95 11.16
2016-06-30 77.64 4.92 11.56
2016-03-31 74.95 4.85 11.88
2015-12-31 73.65 4.04 13.99
2015-09-30 72.31 4.57 10.08
2015-06-30 73.64 4.38 14.17
2015-03-31 74.56 3.58 10.89
2014-12-31 74.03 4.30 13.49
2014-09-30 74.77 4.60 10.38
2014-06-30 78.76 7.32 11.46
2014-03-31 86.79 7.69 12.38
2013-12-31 84.42 7.14 11.58
2013-09-30 86.49 6.95 6.76
2013-06-30 89.42 6.72 7.87
2013-03-31 85.43 7.17 7.71
2012-12-31 80.06 9.75 9.58
2012-09-30 77.82 10.02 8.02
2012-06-30 74.99 9.57 7.60
  • NetSol Technologies's level of debt (12.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (8.9% vs 12.7% today).
  • Debt is well covered by operating cash flow (149.6%, greater than 20% of total debt).
  • NetSol Technologies earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess NetSol Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NetSol Technologies has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is NetSol Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from NetSol Technologies dividends.
If you bought €2,000 of NetSol Technologies shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate NetSol Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NetSol Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:NS9B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:NS9B Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as NetSol Technologies has not reported any payouts.
  • Unable to verify if NetSol Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NetSol Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NetSol Technologies has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NetSol Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NetSol Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NetSol Technologies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of NetSol Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Najeeb Ghauri
COMPENSATION $800,000
AGE 64
TENURE AS CEO 12.6 years
CEO Bio

Mr. Najeeb Ullah Ghauri founded NetSol Technologies, Inc. and has been its Chief Executive since October 2006. Mr. Ghauri served as the Head of NetSol Global Sales at NetSol Technologies, Inc. He served as the Chief Financial Officer of NetSol Technologies Inc. from July 9, 2002 to July 2005 and its Secretary since March 2002. Mr. Ghauri served as the Chief Executive Officer of NetSol Technologies Inc. from 1999 to 2001. His career spans over 22 years of academic, corporate and entrepreneurial accomplishments. His most dynamic, can do and versatile attributes led him to successfully manage senior divisional roles in fortune 500 companies such as Unilever and Atlantic Richfield Corporation, or Arco for short, prior to embarking on a most successful and challenging venture of his career. He was part of the marketing team of Atlantic Richfield Company from 1987 to 1997. In early 1997, he decided to explore a new direction and business venture, that would eventually create the most visible, successful and accomplished IT company in Pakistan. He staged a small holding company namely Mirage Holdings, Inc. He has been the Chairman of NetSol Technologies Inc. since 2003. Mr. Ghauri served as Vice Chairman of NetSol Technologies Inc. He has been a Director of NetSol Technologies Inc. since 1997. He is a founding member of USPBC (the US Pakistan American Business Council). He serves as a Non-Executive Director of Netsol Technologies Limited. He is a founding board member of the Pakistanl Human Development Fund. He is a board member at the newly created U.S. Pakistan Business Council in Washington, D.C. (a U.S. Chamber of Commerce Body). He serves as a Director of M4 International, Inc. Mr. Ghauri has been very actively engaged in some major philanthropic activities including involvement in PHDF (Pakistan Human Development Fund, Al Shifa foundation, DIL (Development in Literacy). He strongly believes in investing in Pakistan for education, improving medical services and poverty alleviation. He is also an active founding member of a prestigious USPBC (US Pak Bus Council), a body of US Chamber of Commerce to promote the US and Pakistan business. In 1982, Mr. Ghauri was a nominee for the Ernst & Young 'Entrepreneur of the Year' award in California. Mr. Ghauri is very active in various educational non-governmental organizations (NGOs) worldwide. He received his Bachelor of Science degree in Management/Economics from Eastern Illinois University in 1979 and an M.B.A. in Marketing Management from Drucker School of Management at Claremont College in California in 1982.

CEO Compensation
  • Najeeb's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Najeeb's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the NetSol Technologies management team in years:

5.7
Average Tenure
53
Average Age
  • The average tenure for the NetSol Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Najeeb Ghauri

TITLE
Founder
COMPENSATION
$800K
AGE
64
TENURE
12.6 yrs

Naeem Ghauri

TITLE
Co-Founder
AGE
61

Roger Almond

TITLE
Chief Financial Officer
COMPENSATION
$233K
AGE
53
TENURE
5.7 yrs

Patti L. McGlasson

TITLE
Senior VP of Legal & Corporate Affairs
COMPENSATION
$227K
AGE
53
TENURE
15.3 yrs

Malea Farsai

TITLE
Corporate Counsel & Director
AGE
48

Boo-Ali Siddiqui

TITLE
Chief Financial Officer & Company Secretary of Netsol Technologies Ltd
COMPENSATION
$271K
AGE
43
TENURE
5.7 yrs

Naheed Haq

TITLE
Head of Administration & Procurement

Matt Glover

TITLE
Investor Relations
TENURE
3.3 yrs

Jeff Bilbrey

TITLE
President of North America
COMPENSATION
$65K
AGE
47
TENURE
3 yrs

Farooq Ghauri

TITLE
Managing Director of Australia
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the NetSol Technologies board of directors in years:

14.3
Average Tenure
67.5
Average Age
  • The average tenure for the NetSol Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Najeeb Ghauri

TITLE
Founder
COMPENSATION
$800K
AGE
64
TENURE
16.3 yrs

Naeem Ghauri

TITLE
Co-Founder
AGE
61
TENURE
20.3 yrs

Eugen Beckert

TITLE
Independent Director
COMPENSATION
$111K
AGE
72
TENURE
17.8 yrs

Mark Caton

TITLE
Independent Director
COMPENSATION
$115K
AGE
69
TENURE
12.3 yrs

Shahid Burki

TITLE
Independent Director
COMPENSATION
$119K
AGE
80
TENURE
16.3 yrs

Henry Tolentino

TITLE
Director
AGE
68
TENURE
0.9 yrs

Georg Bauer

TITLE
Member of Advisory Board
AGE
67
TENURE
1.7 yrs

Malea Farsai

TITLE
Corporate Counsel & Director
AGE
48
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by NetSol Technologies insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. Apr 19 Buy Naeem Ghauri Individual 09. Apr 19 09. Apr 19 5,000 €6.22 €31,100
09. Apr 19 Buy Naeem Ghauri Individual 08. Apr 19 08. Apr 19 1,879 €5.95 €11,181
05. Apr 19 Buy Naeem Ghauri Individual 04. Apr 19 04. Apr 19 5,000 €5.45 €27,271
14. Jan 19 Buy Naeem Ghauri Individual 14. Jan 19 14. Jan 19 2,500 €6.62 €16,555
09. Jan 19 Buy Naeem Ghauri Individual 09. Jan 19 09. Jan 19 5,000 €6.07 €30,333
04. Jan 19 Sell Roger Almond Individual 02. Jan 19 02. Jan 19 -12,500 €5.51 €-68,907
28. Dec 18 Buy Naeem Ghauri Individual 27. Dec 18 27. Dec 18 5,000 €5.00 €24,980
27. Dec 18 Buy Naeem Ghauri Individual 26. Dec 18 26. Dec 18 625 €4.73 €2,958
30. May 18 Buy Najeeb Ghauri Individual 30. May 18 30. May 18 2,500 €5.59 €13,969
25. May 18 Buy Najeeb Ghauri Individual 25. May 18 25. May 18 2,500 €5.32 €13,297
X
Management checks
We assess NetSol Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NetSol Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The company offers NetSol Financial Suite (NFS), an end-to-end solution covering leasing and finance cycle for the asset finance industry; and NFS Ascent platform, a lease accounting and contract processing engine. Its NFS includes Point of Sale, a front office processing system for the financial sector; Credit Application Processing System that handles incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System that enables users to manage and maintain a contract; Wholesale Finance System (WFS) to automate and manage the floor plan/bailment activities; Dealer Auditor Access System, a Web-based solution used with WFS; and Fleet Management System to handle fleet management needs. The company’s NFS Ascent comprises LeasePak, which handles various aspects of the lease or loan lifecycle; and LeasePak software-as-a-service to small and mid-sized leasing and finance companies. In addition, it offers LeaseSoft, a full lifecycle lease and finance system for funder market; and LoanSoft for consumer loan market. Further, the company provides NFS Digital that enables a sales force for the finance and leasing company to access channels, such as point of sale, field investigation, and auditing. Its NFS Digital includes mAccount, a self-service mobile solution; mPOS application, a Web and mobile enabled platform; mDealer, a mobile platform; mAuditor, which schedules visits, records audit exceptions, and tracks assets; and Mobile Field Investigator that permits applicants for detail verification. NetSol Technologies, Inc. has a strategic partnership with Drivemate Co., Ltd. The company was founded in 1997 and is headquartered in Calabasas, California.

Details
Name: NetSol Technologies, Inc.
NS9B
Exchange: DB
Founded: 1997
$60,718,468
11,673,203
Website: http://www.netsoltech.com
Address: NetSol Technologies, Inc.
23975 Park Sorrento,
Suite 250,
Calabasas,
California, 91302,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM NTWK Common Stock Nasdaq Capital Market US USD 24. Sep 1998
DB NS9B Common Stock Deutsche Boerse AG DE EUR 24. Sep 1998
Number of employees
Current staff
Staff numbers
1,356
NetSol Technologies employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 20:54
End of day share price update: 2019/05/08 00:00
Last estimates confirmation: 2016/09/15
Last earnings filing: 2019/05/14
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.