NortonLifeLock
Market Cap
US$12.1b
Last Updated
2020/05/25 02:49 UTC
Data Sources
Company Financials +
Executive Summary
NortonLifeLock Inc. provides cyber security products, services, and solutions worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record second-rate dividend payer.
Similar Companies
Share Price & News
How has NortonLifeLock's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NLOK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.5%
NLOK
1.2%
US Software
1.8%
US Market
1 Year Return
1.9%
NLOK
28.8%
US Software
3.7%
US Market
Return vs Industry: NLOK underperformed the US Software industry which returned 28.8% over the past year.
Return vs Market: NLOK underperformed the US Market which returned 3.7% over the past year.
Shareholder returns
| NLOK | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 1.2% | 1.8% |
| 30 Day | -3.5% | 9.9% | 5.6% |
| 90 Day | 5.8% | 7.3% | -7.4% |
| 1 Year | 79.7%1.9% | 29.8%28.8% | 6.1%3.7% |
| 3 Year | 23.4%-31.7% | 128.8%121.0% | 28.3%19.8% |
| 5 Year | 91.7%-18.1% | 203.4%184.9% | 52.4%35.1% |
Price Volatility Vs. Market
How volatile is NortonLifeLock's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
A Look At The Intrinsic Value Of NortonLifeLock Inc. (NASDAQ:NLOK)2 weeks ago | Simply Wall St
Are NortonLifeLock's (NASDAQ:NLOK) Statutory Earnings A Good Guide To Its Underlying Profitability?1 month ago | Simply Wall St
NortonLifeLock Inc. (NASDAQ:NLOK) Vies For A Place In Your Dividend Portfolio: Here's WhyValuation
Is NortonLifeLock undervalued compared to its fair value and its price relative to the market?
4.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NLOK ($20.24) is trading below our estimate of fair value ($21.13)
Significantly Below Fair Value: NLOK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NLOK is good value based on its PE Ratio (21.5x) compared to the Software industry average (48.3x).
PE vs Market: NLOK is poor value based on its PE Ratio (21.5x) compared to the US market (15x).
Price to Earnings Growth Ratio
PEG Ratio: NLOK is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: NLOK is overvalued based on its PB Ratio (1212.1x) compared to the US Software industry average (5.4x).
Next Steps
Future Growth
How is NortonLifeLock forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
15.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NLOK's forecast earnings growth (15.6% per year) is above the savings rate (2.2%).
Earnings vs Market: NLOK's earnings (15.6% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: NLOK's earnings are forecast to grow, but not significantly.
Revenue vs Market: NLOK's revenue (1.6% per year) is forecast to grow slower than the US market (8.9% per year).
High Growth Revenue: NLOK's revenue (1.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NLOK's Return on Equity is forecast to be high in 3 years time (31.7%)
Next Steps
Past Performance
How has NortonLifeLock performed over the past 5 years?
36.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NLOK has a high level of non-cash earnings.
Growing Profit Margin: NLOK's current net profit margins (23.2%) are higher than last year (0.5%).
Past Earnings Growth Analysis
Earnings Trend: NLOK's earnings have grown significantly by 36.5% per year over the past 5 years.
Accelerating Growth: NLOK's earnings growth over the past year (2463.1%) exceeds its 5-year average (36.5% per year).
Earnings vs Industry: NLOK earnings growth over the past year (2463.1%) exceeded the Software industry 6.3%.
Return on Equity
High ROE: Whilst NLOK's Return on Equity (5780%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is NortonLifeLock's financial position?
Financial Position Analysis
Short Term Liabilities: NLOK's short term assets ($3.1B) exceed its short term liabilities ($2.6B).
Long Term Liabilities: NLOK's short term assets ($3.1B) do not cover its long term liabilities ($5.1B).
Debt to Equity History and Analysis
Debt Level: NLOK's debt to equity ratio (42210%) is considered high.
Reducing Debt: NLOK's debt to equity ratio has increased from 35.3% to 42210% over the past 5 years.
Debt Coverage: NLOK's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: NLOK's interest payments on its debt are well covered by EBIT (3.2x coverage).
Balance Sheet
Next Steps
Dividend
What is NortonLifeLock's current dividend yield, its reliability and sustainability?
2.47%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: NLOK's dividend (2.47%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: NLOK's dividend (2.47%) is low compared to the top 25% of dividend payers in the US market (4.73%).
Stability and Growth of Payments
Stable Dividend: NLOK has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: NLOK has only been paying a dividend for 7 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.6%), NLOK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NLOK's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.5yrs
Average management tenure
CEO
Vincent Pilette (47yo)
0.50
Tenure
Mr. Vincent Pilette serves as Director at NortonLifeLock Inc. since December 19, 2019. He serves as Chief Executive Officer of NortonLifeLock Inc. (formerly, Symantec Corporation) since November 8, 2019. M ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.50yr | US$10.98m | 0.012% $1.4m | |
| CEO & Director | 0.50yr | no data | 0.15% $18.7m | |
| Interim Chief Financial Officer | 0.50yr | no data | 0.0037% $449.5k | |
| Head of Technology | 0.33yr | no data | no data | |
| VP & Chief Information Officer | 0.42yr | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel & Corporate Secretary | 0.33yr | no data | 0.0038% $465.3k | |
| Vice President of Corporate Communications | 1.5yrs | no data | no data | |
| Head of Global Sales & Field Marketing | no data | no data | no data | |
| Senior VP & Chief Marketing Officer | 1.25yrs | no data | no data |
0.5yrs
Average Tenure
47yo
Average Age
Experienced Management: NLOK's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.50yr | no data | 0.15% $18.7m | |
| Independent Director | 4.17yrs | US$325.00k | no data | |
| Independent Director | 0.42yr | no data | 0.0027% $321.9k | |
| Director | 0.25yr | no data | 0.0029% $346.2k | |
| Independent Chairman | no data | US$360.00k | 0.021% $2.5m | |
| Independent Director | 1.33yrs | US$76.59k | 0.0059% $713.1k | |
| Independent Director | 14.83yrs | US$370.00k | 0.018% $2.2m | |
| Independent Director | 3.75yrs | US$325.00k | 0.011% $1.3m | |
| Independent Director | 1.67yrs | US$190.18k | 0.0067% $809.1k |
1.5yrs
Average Tenure
57yo
Average Age
Experienced Board: NLOK's board of directors are not considered experienced ( 1.5 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NortonLifeLock Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NortonLifeLock Inc.
- Ticker: NLOK
- Exchange: NasdaqGS
- Founded: 1982
- Industry: Systems Software
- Sector: Software
- Market Cap: US$12.149b
- Shares outstanding: 600.38m
- Website: https://www.NortonLifeLock.com
Number of Employees
Location
- NortonLifeLock Inc.
- 60 East Rio Salado Parkway
- Suite 1000
- Tempe
- Arizona
- 85281
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NLOK | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 1989 |
| SYM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1989 |
| SYMC-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jun 1989 |
| NLOK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 1989 |
| NLOK | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jun 1989 |
| S1YM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD0.01 | BR | BRL | Dec 2019 |
Biography
NortonLifeLock Inc. provides cyber security products, services, and solutions worldwide. The company offers Norton security solutions as a subscription service providing protection for devices against malware, viruses, adware, and ransomware on various platforms; and LifeLock identity theft protection solution that provides identity monitoring, alerts, and restoration to its customers. It also provides Norton Secure VPN and other consumer security solutions, as well as Norton Wi-Fi Privacy VPN. The company serves enterprises, including business, government, and public-sector customers; small, medium, and large businesses; and individuals, households, and small businesses. It markets and sells its products and related services through direct sales force, direct marketing and co-marketing programs, e-commerce and telesales platforms, distributors, Internet-based resellers, system builders, Internet service providers, employee benefits providers, wireless carriers, retailers, original equipment manufacturers, and retail and online stores. The company was formerly known as Symantec Corporation and changed its name to NortonLifeLock Inc. in November 2019. NortonLifeLock Inc. was founded in 1982 and is based in Tempe, Arizona.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/25 02:49 |
| End of Day Share Price | 2020/05/22 00:00 |
| Earnings | 2020/04/03 |
| Annual Earnings | 2020/04/03 |
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.