OB:NAPA

Stock Analysis Report

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Market Cap

kr1.6b

Last Updated

2021/07/31 04:18 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 20.5% below our estimate of its fair value

Earnings are forecast to grow 33.57% per year

Became profitable this year

Risk Analysis

No risks detected for NAPA from our risk checks.


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


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: NAPA is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NAPA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

4.3%

NAPA

0.5%

NO Communications

0.2%

NO Market


1 Year Return

155.7%

NAPA

11.7%

NO Communications

31.8%

NO Market

Return vs Industry: NAPA exceeded the Norwegian Communications industry which returned 11.7% over the past year.

Return vs Market: NAPA exceeded the Norwegian Market which returned 31.8% over the past year.


Shareholder returns

NAPAIndustryMarket
7 Day4.3%0.5%0.2%
30 Day-5.5%1.7%0.2%
90 Day0.8%2.4%2.0%
1 Year155.7%155.7%12.9%11.7%36.6%31.8%
3 Year291.5%291.5%32.3%28.4%18.2%4.8%
5 Year-13.5%-13.5%42.6%31.4%76.9%44.2%

Long-Term 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

Valuation

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

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NAPA (NOK19.46) is trading below our estimate of fair value (NOK24.49)

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


Price To Earnings Ratio

PE vs Industry: NAPA is poor value based on its PE Ratio (119.6x) compared to the European Communications industry average (48.7x).

PE vs Market: NAPA is poor value based on its PE Ratio (119.6x) compared to the Norwegian market (14.3x).


Price to Earnings Growth Ratio

PEG Ratio: NAPA is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: NAPA is overvalued based on its PB Ratio (12.8x) compared to the XE Communications industry average (3.1x).


Future Growth

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

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAPA's forecast earnings growth (33.6% per year) is above the savings rate (1.2%).

Earnings vs Market: NAPA's earnings (33.6% per year) are forecast to grow faster than the Norwegian market (10% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NAPA's revenue (22.7% per year) is forecast to grow faster than the Norwegian market (5.5% per year).

High Growth Revenue: NAPA's revenue (22.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NAPA's Return on Equity is forecast to be high in 3 years time (22%)


Past Performance

How has Napatech performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAPA has high quality earnings.

Growing Profit Margin: NAPA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NAPA has become profitable over the past 5 years, growing earnings by -9.9% per year.

Accelerating Growth: NAPA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NAPA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (52.9%).


Return on Equity

High ROE: NAPA's Return on Equity (17.4%) is considered low.


Financial Health

How is Napatech's financial position?


Financial Position Analysis

Short Term Liabilities: NAPA's short term assets (DKK85.7M) exceed its short term liabilities (DKK31.8M).

Long Term Liabilities: NAPA's short term assets (DKK85.7M) exceed its long term liabilities (DKK12.7M).


Debt to Equity History and Analysis

Debt Level: NAPA's debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: NAPA's debt to equity ratio has increased from 1.6% to 10.4% over the past 5 years.

Debt Coverage: NAPA's debt is well covered by operating cash flow (322.4%).

Interest Coverage: NAPA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if NAPA'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 NAPA's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Ray Smets (58 yo)

3yrs

Tenure

Mr. Raymond Smets, also known as Ray serves as Chief Executive Officer of Napatech A/S since July 24, 2018 and serves its Member of the Management Board. Mr. Smets served as Executive Vice President of Wor...


Leadership Team

Experienced Management: NAPA's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: NAPA's board of directors are considered experienced (4 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Napatech A/S
  • Ticker: NAPA
  • Exchange: OB
  • Founded: 2003
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: kr1.617b
  • Shares outstanding: 83.08m
  • Website: https://www.napatech.com

Number of Employees


Location

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

Listings


Biography

Napatech A/S provides reconfigurable computing solutions for network performance and cybersecurity applications worldwide. It provides Link Capture Software that enables packet capture with nanosecond time...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 04:18
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.