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NETS

Netsol Technologies KASE:NETSOL Stock Report

Last Price

PK₨99.45

Market Cap

PK₨8.9b

7D

3.2%

1Y

-35.5%

Updated

10 Aug, 2022

Data

Company Financials
NETSOL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

NETSOL Stock Overview

NetSol Technologies Limited develops and sells computer software and related services in Pakistan and internationally.

Netsol Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Netsol Technologies
Historical stock prices
Current Share PricePK₨99.45
52 Week HighPK₨168.40
52 Week LowPK₨77.50
Beta2.11
1 Month Change3.30%
3 Month Change17.18%
1 Year Change-35.50%
3 Year Change84.00%
5 Year Change26.40%
Change since IPO756.65%

Recent News & Updates

Shareholder Returns

NETSOLPK ITPK Market
7D3.2%2.9%3.7%
1Y-35.5%-5.6%-16.3%

Return vs Industry: NETSOL underperformed the PK IT industry which returned -5.6% over the past year.

Return vs Market: NETSOL underperformed the PK Market which returned -16.3% over the past year.

Price Volatility

Is NETSOL's price volatile compared to industry and market?
NETSOL volatility
NETSOL Average Weekly Movement6.5%
IT Industry Average Movement5.8%
Market Average Movement5.4%
10% most volatile stocks in PK Market8.0%
10% least volatile stocks in PK Market3.4%

Stable Share Price: NETSOL is not significantly more volatile than the rest of PK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: NETSOL's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,279Salim Ghaurihttps://www.netsolpk.com

NetSol Technologies Limited develops and sells computer software and related services in Pakistan and internationally. It offers NFS Ascent comprising Omni Point of Sale, a web-based application that enables rapid data capture; Contract Management System, an application for managing and maintaining detailed credit contracts throughout their lifecycle; and Wholesale Finance Solution for automating and managing the lifecycle of wholesale finance. The company also provides NFS Digital, including Mobile Point of Sale, a web and mobile-enabled platform that comprises of menu selling, application submission, loan calculator, work queues, and detailed reporting; Web Point of Sale; Mobile Collector to carry out collection related tasks; Mobile Field Investigator for verification of applicant details; Mobile Auditor, which enables business partners to schedule visits, record audit exceptions, and track assets, as well as auditors to conduct audits and submit results in real-time through quick audit processing tools; and Mobile Dealer, a mobile platform for business partners that delivers visibility and control over their inventories.

Netsol Technologies Fundamentals Summary

How do Netsol Technologies's earnings and revenue compare to its market cap?
NETSOL fundamental statistics
Market CapPK₨8.93b
Earnings (TTM)PK₨648.90m
Revenue (TTM)PK₨5.56b

13.8x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NETSOL income statement (TTM)
RevenuePK₨5.56b
Cost of RevenuePK₨3.54b
Gross ProfitPK₨2.02b
Other ExpensesPK₨1.37b
EarningsPK₨648.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)7.22
Gross Margin36.34%
Net Profit Margin11.68%
Debt/Equity Ratio22.3%

How did NETSOL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NETSOL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NETSOL?

Other financial metrics that can be useful for relative valuation.

NETSOL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA12.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does NETSOL's PE Ratio compare to its peers?

NETSOL PE Ratio vs Peers
The above table shows the PE ratio for NETSOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17x
AVN Avanceon
15.4xn/aPK₨25.7b
OCTOPUS Octopus Digital
17.7xn/aPK₨9.7b
SYS Systems
20.1xn/aPK₨101.4b
3848 Data Applications Company
15.1xn/aJP¥4.9b
NETSOL Netsol Technologies
13.8xn/aPK₨8.9b

Price-To-Earnings vs Peers: NETSOL is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (17x).


Price to Earnings Ratio vs Industry

How does NETSOL's PE Ratio compare vs other companies in the Asian IT Industry?

Price-To-Earnings vs Industry: NETSOL is good value based on its Price-To-Earnings Ratio (13.8x) compared to the Asian IT industry average (22.1x)


Price to Earnings Ratio vs Fair Ratio

What is NETSOL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NETSOL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NETSOL's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of NETSOL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NETSOL (PKR99.45) is trading above our estimate of fair value (PKR77.18)

Significantly Below Fair Value: NETSOL is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.7%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Netsol Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine Netsol Technologies's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Netsol Technologies performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-1.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NETSOL has high quality earnings.

Growing Profit Margin: NETSOL's current net profit margins (11.7%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: NETSOL's earnings have declined by 1.8% per year over the past 5 years.

Accelerating Growth: NETSOL's earnings growth over the past year (17.3%) exceeds its 5-year average (-1.8% per year).

Earnings vs Industry: NETSOL earnings growth over the past year (17.3%) underperformed the IT industry 19.1%.


Return on Equity

High ROE: NETSOL's Return on Equity (8.3%) is considered low.


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Financial Health

How is Netsol Technologies's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NETSOL's short term assets (PKR8.0B) exceed its short term liabilities (PKR2.3B).

Long Term Liabilities: NETSOL's short term assets (PKR8.0B) exceed its long term liabilities (PKR12.7M).


Debt to Equity History and Analysis

Debt Level: NETSOL has more cash than its total debt.

Reducing Debt: NETSOL's debt to equity ratio has increased from 8.5% to 22.3% over the past 5 years.

Debt Coverage: NETSOL's debt is well covered by operating cash flow (41.6%).

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


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate NETSOL'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 NETSOL's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: NETSOL is not paying a notable dividend for the PK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NETSOL has not reported any payouts.


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Management

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

PK₨5m

CEO Compensation


CEO

Salim Ghauri (66 yo)

26.58yrs

Tenure

PK₨4,869,000

Compensation

Mr. Salim Ullah Ghauri serves as the Chief Executive Officer of Netsol Technologies Limited Pakistan. Mr. Ghauri serves as the Chief Executive Officer of Netsol Innovation (Pvt) Limited. He serves as the P...


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

Netsol Technologies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Netsol Technologies Limited
  • Ticker: NETSOL
  • Exchange: KASE
  • Founded: 1996
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: PK₨8.934b
  • Shares outstanding: 89.84m
  • Website: https://www.netsolpk.com

Number of Employees


Location

  • Netsol Technologies Limited
  • NetSol IT Vlg (Software Tech Park)
  • Lahore Ring Road
  • Lahore
  • 54792
  • Pakistan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.