NasdaqGS:NLOK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

NortonLifeLock Inc. provides cyber safety solutions for consumers worldwide. More Details


Snowflake Analysis

Good value with proven 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

-2.6%

NLOK

0.3%

US Software

0.3%

US Market


1 Year Return

-25.9%

NLOK

40.4%

US Software

21.1%

US Market

Return vs Industry: NLOK underperformed the US Software industry which returned 38.5% over the past year.

Return vs Market: NLOK underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

NLOKIndustryMarket
7 Day-2.6%0.3%0.3%
30 Day-2.2%-1.7%3.3%
90 Day-0.1%5.2%14.2%
1 Year31.3%-25.9%41.3%40.4%23.8%21.1%
3 Year42.5%-21.9%124.5%117.3%45.0%35.4%
5 Year152.1%8.1%266.8%247.1%127.7%102.3%

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

Valuation

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

49.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NLOK ($20.78) is trading below our estimate of fair value ($41.02)

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 (15.3x) compared to the US Software industry average (58.9x).

PE vs Market: NLOK is good value based on its PE Ratio (15.3x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: NLOK is poor value based on its PEG Ratio (1.1x)


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.


Next Steps

Future Growth

How is NortonLifeLock forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NLOK's forecast earnings growth (14.1% per year) is above the savings rate (2%).

Earnings vs Market: NLOK's earnings (14.1% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: NLOK's earnings are forecast to grow, but not significantly.

Revenue vs Market: NLOK's revenue (4% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: NLOK's revenue (4% 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 (189.1%).


Next Steps

Past Performance

How has NortonLifeLock performed over the past 5 years?

41.7%

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 (33.1%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: NLOK's earnings have grown significantly by 41.7% per year over the past 5 years.

Accelerating Growth: NLOK's earnings growth over the past year (726.1%) exceeds its 5-year average (41.7% per year).

Earnings vs Industry: NLOK earnings growth over the past year (726.1%) exceeded the Software industry 14.3%.


Return on Equity

High ROE: NLOK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

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 (7.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NLOK's dividend (2.41%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: NLOK's dividend (2.41%) is low compared to the top 25% of dividend payers in the US market (3.85%).


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 (36.8%), 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 (31.3% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Vincent Pilette (48 yo)

1.17yrs

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 ($USD20.60M) is above average for companies of similar size in the US market ($USD10.55M).

Compensation vs Earnings: Insufficient data to compare Vincent's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Pilette
CEO & Director1.17yrsUS$20.60m0.18%
$ 21.6m
Bryan Ko
Chief Legal Officer1yrUS$5.70m0.0063%
$ 778.5k
Natalie Derse
CFO & Principal Accounting Officer0.50yrno datano data
Darren Shou
Head of Technology1yrno datano data
Sameer Khera
VP & Chief Information Officer1.08yrsno datano data
Soohwan Kim
Head of Investor Relationsno datano datano data
Krista Todd
Vice President of Marketing & Communications0.50yrno datano data
Kara Jordan
Chief People & Culture Officer1.08yrsno datano data
Roxane Divol
Executive VP & GM of Website Security7yrsno datano data
Sean Delehanty
Senior Vice President of Financeno datano datano data
Nico Popp
Senior Vice President of Information Protectionno datano datano data
Gagandeep Singh
Chief Product Officer0.67yrno datano data

1.0yrs

Average Tenure

45.5yo

Average Age

Experienced Management: NLOK's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vincent Pilette
CEO & Director1.17yrsUS$20.60m0.18%
$ 21.6m
Kenneth Hao
Independent Director4.83yrsUS$325.00kno data
Nora Denzel
Independent Director1.08yrsUS$101.93k0.0027%
$ 330.8k
Eric Brandt
Independent Director0.92yrUS$36.27k0.0029%
$ 355.4k
Frank Dangeard
Independent Chairman1.08yrsUS$396.63k0.022%
$ 2.7m
Susan Barsamian
Independent Director2yrsUS$444.65k0.0060%
$ 731.8k
David Humphrey
Independent Director4.42yrsUS$325.00k0.011%
$ 1.4m
Peter Feld
Independent Director2.33yrsUS$380.00k0.0068%
$ 831.4k

1.5yrs

Average Tenure

54.5yo

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$12.299b
  • Shares outstanding: 591.87m
  • 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 00:05
End of Day Share Price2021/01/19 00:00
Earnings2020/10/02
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.