NortonLifeLock
Market Cap
US$12.7b
Last Updated
2021/04/19 23:46 UTC
Data Sources
Company Financials +
Executive Summary
NortonLifeLock Inc. provides cyber safety solutions for consumers worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value with acceptable track record.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NLOK's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.8%
NLOK
2.3%
US Software
1.3%
US Market
1 Year Return
8.9%
NLOK
56.0%
US Software
53.8%
US Market
Return vs Industry: NLOK underperformed the US Software industry which returned 56% over the past year.
Return vs Market: NLOK underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| NLOK | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | 2.3% | 1.3% |
| 30 Day | 3.2% | 11.1% | 5.1% |
| 90 Day | 4.9% | 12.0% | 8.9% |
| 1 Year | 11.6%8.9% | 57.1%56.0% | 56.6%53.8% |
| 3 Year | 43.8%-21.5% | 146.1%138.6% | 64.4%53.6% |
| 5 Year | 125.8%20.4% | 329.3%305.3% | 120.4%95.7% |
Long-Term 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
2 weeks ago | Simply Wall St
NortonLifeLock Inc. (NASDAQ:NLOK) Shares Could Be 27% Below Their Intrinsic Value Estimate1 month ago | Simply Wall St
Read This Before Buying NortonLifeLock Inc. (NASDAQ:NLOK) For Its Dividend1 month ago | Simply Wall St
Did NortonLifeLock Inc. (NASDAQ:NLOK) Insiders Sell Shares?Valuation
Is NortonLifeLock undervalued compared to its fair value and its price relative to the market?
26.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NLOK ($21.62) is trading below our estimate of fair value ($29.34)
Significantly Below Fair Value: NLOK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NLOK is good value based on its PE Ratio (20.1x) compared to the US Software industry average (54.5x).
PE vs Market: NLOK is good value based on its PE Ratio (20.1x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: NLOK is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: NLOK has negative assets, so we can't compare its PB Ratio to the US Software industry average.
Future Growth
How is NortonLifeLock forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
17.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NLOK's forecast earnings growth (17% per year) is above the savings rate (2%).
Earnings vs Market: NLOK's earnings (17% per year) are forecast to grow slower than the US market (18% per year).
High Growth Earnings: NLOK's earnings are forecast to grow, but not significantly.
Revenue vs Market: NLOK's revenue (5.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: NLOK's revenue (5.3% 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 very high in 3 years time (167.5%).
Past Performance
How has NortonLifeLock performed over the past 5 years?
44.4%
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 (25.6%) are higher than last year (18.5%).
Past Earnings Growth Analysis
Earnings Trend: NLOK's earnings have grown significantly by 44.4% per year over the past 5 years.
Accelerating Growth: NLOK's earnings growth over the past year (37.9%) is below its 5-year average (44.4% per year).
Earnings vs Industry: NLOK earnings growth over the past year (37.9%) exceeded the Software industry 16.3%.
Return on Equity
High ROE: NLOK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Financial Health
How is NortonLifeLock's financial position?
Financial Position Analysis
Short Term Liabilities: NLOK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: NLOK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: NLOK has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: NLOK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
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 (7.4x coverage).
Balance Sheet
Dividend
What is NortonLifeLock current dividend yield, its reliability and sustainability?
2.29%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NLOK's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: NLOK's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (3.46%).
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 8 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.6%), 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 (29.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Vincent Pilette (48 yo)
1.42yrs
Tenure
US$20,596,491
Compensation
Mr. Vincent Pilette serves as Director at NortonLifeLock Inc. since December 19, 2019. He serves as Chief Executive Officer of NortonLifeLock Inc. (formerly, Symantec Corporation) since November 8, 2019. M...
CEO Compensation Analysis
Compensation vs Market: Vincent's total compensation ($USD20.60M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Insufficient data to compare Vincent's compensation with company performance.
Leadership Team
Experienced Management: NLOK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: NLOK's board of directors are not considered experienced ( 1.3 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: NLOK insiders have only sold shares 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$12.685b
- Shares outstanding: 581.90m
- Website: https://www.nortonLifeLock.com
Number of Employees
Location
- NortonLifeLock Inc.
- 60 East Rio Salado Parkway
- Suite 1000
- Tempe
- Arizona
- 85281
- United States
Listings
Biography
NortonLifeLock Inc. provides cyber safety solutions for consumers worldwide. The company offers Norton security solutions as a subscription service providing protection for PCs, Macs, and mobile devices ag...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 23:46 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2021/01/01 |
| 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.