DB:NAT

Stock Analysis Report

Executive Summary

Napatech A/S provides reconfigurable computing solutions for network performance and cybersecurity applications worldwide.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Napatech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NAT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-15.5%

NAT

-12.0%

DE Communications

-4.7%

DE Market


1 Year Return

134.7%

NAT

-10.5%

DE Communications

8.3%

DE Market

Return vs Industry: NAT exceeded the German Communications industry which returned -10.5% over the past year.

Return vs Market: NAT exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

NATIndustryMarket
7 Day-15.5%-12.0%-4.7%
30 Day-10.7%-11.2%-4.0%
90 Day-3.9%-14.6%-1.4%
1 Year134.7%134.7%-10.1%-10.5%11.7%8.3%
3 Year-86.7%-86.7%-12.6%-12.9%11.4%1.6%
5 Year-45.0%-45.0%77.7%77.3%15.1%-0.7%

Price Volatility Vs. Market

How volatile is Napatech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Napatech undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NAT (€0.41) is trading below our estimate of fair value (€1.93)

Significantly Below Fair Value: NAT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NAT is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: NAT is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NAT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NAT is overvalued based on its PB Ratio (2.8x) compared to the DE Communications industry average (2.7x).


Next Steps

Future Growth

How is Napatech forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

92.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: NAT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NAT's is expected to become profitable in the next 3 years.

Revenue vs Market: NAT's revenue (14.6% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: NAT's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAT's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Napatech performed over the past 5 years?

-75.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAT is currently unprofitable.

Growing Profit Margin: NAT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NAT is unprofitable, and losses have increased over the past 5 years at a rate of -75.2% per year.

Accelerating Growth: Unable to compare NAT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NAT is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).


Return on Equity

High ROE: NAT has a negative Return on Equity (-81.14%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Napatech's financial position?


Financial Position Analysis

Short Term Liabilities: NAT's short term assets (DKK101.2M) exceed its short term liabilities (DKK61.5M).

Long Term Liabilities: NAT's short term assets (DKK101.2M) exceed its long term liabilities (DKK21.3M).


Debt to Equity History and Analysis

Debt Level: NAT's debt to equity ratio (41.8%) is considered high.

Reducing Debt: NAT's debt to equity ratio has increased from 2.6% to 41.8% over the past 5 years.


Balance Sheet

Inventory Level: NAT has a low level of unsold assets or inventory.

Debt Coverage by Assets: NAT's debt is covered by short term assets (assets are 3.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NAT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NAT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -16.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NAT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NAT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NAT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NAT's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Ray Smets (56yo)

1.6yrs

Tenure

0

Mr. Raymond Smets, also known as Ray serves as Chief Executive Officer of Napatech A/S since July 24, 2018. Mr. Smets served as Executive Vice President of Worldwide Sales at A10 Networks, Inc. from Novemb ...


Leadership Team

NamePositionTenureCompensationOwnership
Raymond Smets
Chief Executive Officer1.6yrsno data0.46% DKK159.6k
Heine Thorsgaard
Chief Financial Officer1.3yrsno datano data
Henrik Jensen
Chief Operating Officer1.6yrsno data0.48% DKK166.9k
Lars Christiansen
Regulatory Compliance Manager0yrsno datano data
Jarrod J. Siket
Chief Marketing Officer3.1yrsno datano data
Heidi Thisgaard
HR Manager2.9yrsno datano data
Flemming Andersen
Chief Research & Development Officer0yrsno data0.29% DKK100.1k
Michael Lilja
Chief Technology Architect0yrsno datano data

1.6yrs

Average Tenure

47yo

Average Age

Experienced Management: NAT's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christian Jebsen
Director1.1yrsno datano data
Howard Bubb
Director3.7yrsno data0.084% DKK29.4k
Lars Boilesen
Chairman2.3yrsno data0.39% DKK134.4k
Henry Wasik
Director2.8yrsno data0.24% DKK84.0k
Bjørn Reinseth
Director0yrsno data0.52% DKK180.6k

2.6yrs

Average Tenure

54yo

Average Age

Experienced Board: NAT's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 64.4%.


Top Shareholders

Company Information

Napatech A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Napatech A/S
  • Ticker: NAT
  • Exchange: DB
  • Founded: 2003
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: kr355.486m
  • Listing Market Cap: kr34.889m
  • Shares outstanding: 83.06m
  • Website: https://www.napatech.com

Number of Employees


Location

  • Napatech A/S
  • Tobaksvejen 23 A
  • Søborg
  • Copenhagen
  • Capital Region of Denmark
  • 2860
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAPAOB (Oslo Bors)YesOrdinary SharesNONOKDec 2013
NATDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
0QJ4LSE (London Stock Exchange)YesOrdinary SharesGBNOKDec 2013
NAPAOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKDec 2013

Biography

Napatech A/S provides reconfigurable computing solutions for network performance and cybersecurity applications worldwide. The company offers field-programmable gate arrays (FPGA) based computing solutions. It provides FPGA SmartNICs that captures data from networks enabling real-time insight into network traffic; network functions virtualization, a hardware platform that supports acceleration solutions for virtualized environments; and FPGA Cloud Crypto, a cryptography engine that provides technology demonstration and playground for users to learn, experiment, and adapt use cases for FPGA-based crypto offload. It also provides solutions for telecom operators, cloud and data center service providers, and government and infrastructure network managers, as well as cyber security, financial services, and network management industries. The company was founded in 2003 and is headquartered in Copenhagen, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:25
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.