NasdaqGS:NLOK

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Executive Summary

NortonLifeLock Inc. provides cyber security products, services, and solutions worldwide.


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

NLOKIndustryMarket
7 Day1.5%1.2%1.8%
30 Day-3.5%9.9%5.6%
90 Day5.8%7.3%-7.4%
1 Year79.7%1.9%29.8%28.8%6.1%3.7%
3 Year23.4%-31.7%128.8%121.0%28.3%19.8%
5 Year91.7%-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

Valuation

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

NamePositionTenureCompensationOwnership
Samir Kapuria
President0.50yrUS$10.98m0.012% $1.4m
Vincent Pilette
CEO & Director0.50yrno data0.15% $18.7m
Matthew Brown
Interim Chief Financial Officer0.50yrno data0.0037% $449.5k
Darren Shou
Head of Technology0.33yrno datano data
Sameer Khera
VP & Chief Information Officer0.42yrno datano data
Soohwan Kim
Head of Investor Relationsno datano datano data
Bryan Seuk Ko
General Counsel & Corporate Secretary0.33yrno data0.0038% $465.3k
Justin Saia
Vice President of Corporate Communications1.5yrsno datano data
Fredrik Torstensson
Head of Global Sales & Field Marketingno datano datano data
Debora Tomlin
Senior VP & Chief Marketing Officer1.25yrsno datano 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

NamePositionTenureCompensationOwnership
Vincent Pilette
CEO & Director0.50yrno data0.15% $18.7m
Kenneth Hao
Independent Director4.17yrsUS$325.00kno data
Nora Denzel
Independent Director0.42yrno data0.0027% $321.9k
Eric Brandt
Director0.25yrno data0.0029% $346.2k
Frank Dangeard
Independent Chairmanno dataUS$360.00k0.021% $2.5m
Susan Barsamian
Independent Director1.33yrsUS$76.59k0.0059% $713.1k
Vincent Unruh
Independent Director14.83yrsUS$370.00k0.018% $2.2m
David Humphrey
Independent Director3.75yrsUS$325.00k0.011% $1.3m
Peter Feld
Independent Director1.67yrsUS$190.18k0.0067% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NLOKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1989
SYMDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1989
SYMC-UETLX (Eurotlx)YesCommon StockITEURJun 1989
NLOK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1989
NLOKWBAG (Wiener Boerse AG)YesCommon StockATEURJun 1989
S1YM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.01BRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 02:49
End of Day Share Price2020/05/22 00:00
Earnings2020/04/03
Annual Earnings2020/04/03


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.