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NTWK

NetSol Technologies NasdaqCM:NTWK Stock Report

Last Price

US$3.02

Market Cap

US$34.0m

7D

-11.7%

1Y

-34.1%

Updated

29 Sep, 2022

Data

Company Financials
NTWK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends0/6

NTWK Stock Overview

NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide.

Risk Analysis

Does not have a meaningful market cap ($34M)


NetSol Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NetSol Technologies
Historical stock prices
Current Share PriceUS$3.02
52 Week HighUS$5.65
52 Week LowUS$2.74
Beta0.72
1 Month Change-9.91%
3 Month Change-4.43%
1 Year Change-34.06%
3 Year Change-45.09%
5 Year Change-17.26%
Change since IPO-98.88%

Recent News & Updates

Sep 27

NetSol GAAP EPS of $0.08, revenue of $57.25M

NetSol press release (NASDAQ:NTWK): FY GAAP EPS of $0.08. Revenue of $57.25M (+4.2% Y/Y). Annual recurring revenue (SaaS and Support) increased to $28.3 million, up by 27.6% Shares +4.8% PM.

Shareholder Returns

NTWKUS SoftwareUS Market
7D-11.7%-0.9%-3.1%
1Y-34.1%-30.9%-21.5%

Return vs Industry: NTWK underperformed the US Software industry which returned -30% over the past year.

Return vs Market: NTWK underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is NTWK's price volatile compared to industry and market?
NTWK volatility
NTWK Average Weekly Movement6.5%
Software Industry Average Movement8.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: NTWK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NTWK's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19971,781Najeeb Ghaurihttps://www.netsoltech.com

NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry. Its NFS Ascent constituent applications include Omni Point of Sale, a web-based application; Contract Management System (CMS), an application for managing and maintaining credit contracts; Wholesale Finance System (WFS), a system for automating and managing the lifecycle of wholesale finance; Dealer Auditor Access System, a web-based solution that could be used in conjunction with WFS or any third-party wholesale finance system; NFS Ascent deployed on The Cloud, a cloud-version of NFS Ascent; and NFS Digital comprising Self Point of Sale, Mobile Account, Mobile Point of Sale, Mobile Dealer, Mobile Auditor, Mobile Collector, and Mobile Field Investigator.

NetSol Technologies Fundamentals Summary

How do NetSol Technologies's earnings and revenue compare to its market cap?
NTWK fundamental statistics
Market CapUS$34.00m
Earnings (TTM)-US$851.16k
Revenue (TTM)US$57.25m

0.6x

P/S Ratio

-39.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTWK income statement (TTM)
RevenueUS$57.25m
Cost of RevenueUS$30.56m
Gross ProfitUS$26.69m
Other ExpensesUS$27.54m
Earnings-US$851.16k

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.076
Gross Margin46.62%
Net Profit Margin-1.49%
Debt/Equity Ratio17.3%

How did NTWK perform over the long term?

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

Valuation

Is NTWK 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 NTWK?

Other financial metrics that can be useful for relative valuation.

NTWK 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/Revenue0.4x
Enterprise Value/EBITDA9.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NTWK's PS Ratio compare to its peers?

NTWK PS Ratio vs Peers
The above table shows the PS ratio for NTWK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.6x
MNDO MIND C.T.I
1.8xn/aUS$43.6m
GVP GSE Systems
0.4xn/aUS$19.3m
EXOD Exodus Movement
1xn/aUS$73.3m
ISDR Issuer Direct
3.3xn/aUS$72.9m
NTWK NetSol Technologies
0.6xn/aUS$34.0m

Price-To-Sales vs Peers: NTWK is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.6x).


Price to Earnings Ratio vs Industry

How does NTWK's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: NTWK is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Software industry average (4.4x)


Price to Sales Ratio vs Fair Ratio

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

NTWK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: NTWK ($3.02) is trading above our estimate of fair value ($1.21)

Significantly Below Fair Value: NTWK 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


19.4%

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

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NTWK is currently unprofitable.

Growing Profit Margin: NTWK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NTWK is unprofitable, but has reduced losses over the past 5 years at a rate of 11.4% per year.

Accelerating Growth: Unable to compare NTWK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NTWK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.5%).


Return on Equity

High ROE: NTWK has a negative Return on Equity (2.16%), as it is currently unprofitable.


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Financial Health

How is NetSol Technologies's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NTWK's short term assets ($49.4M) exceed its short term liabilities ($20.8M).

Long Term Liabilities: NTWK's short term assets ($49.4M) exceed its long term liabilities ($923.5K).


Debt to Equity History and Analysis

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

Reducing Debt: NTWK's debt to equity ratio has increased from 12.6% to 17.3% over the past 5 years.

Debt Coverage: NTWK's debt is well covered by operating cash flow (34.8%).

Interest Coverage: Insufficient data to determine if NTWK's interest payments on its debt are well covered by EBIT.


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

NetSol Technologies Dividend Yield vs Market
How does NetSol Technologies dividend yield compare to the market?
SegmentDividend Yield
Company (NetSol Technologies)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (NetSol Technologies)n/a

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

5.2yrs

Average management tenure


CEO

Najeeb Ghauri (68 yo)

25.67yrs

Tenure

US$914,883

Compensation

Mr. Najeeb Ullah Ghauri co-founded NetSol Technologies, Inc. and has been its Chief Executive since October 2006. Mr. Ghauri served as the Head of NetSol Global Sales at NetSol Technologies, Inc. He served...


CEO Compensation Analysis

Najeeb Ghauri's Compensation vs NetSol Technologies Earnings
How has Najeeb Ghauri's remuneration changed compared to NetSol Technologies's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$851k

Mar 31 2022n/an/a

US$3m

Dec 31 2021n/an/a

US$3m

Sep 30 2021n/an/a

US$1m

Jun 30 2021US$915kUS$667k

US$2m

Mar 31 2021n/an/a

US$1m

Dec 31 2020n/an/a

US$3m

Sep 30 2020n/an/a

US$3m

Jun 30 2020US$846kUS$689k

US$937k

Mar 31 2020n/an/a

US$3m

Dec 31 2019n/an/a

US$4m

Sep 30 2019n/an/a

US$6m

Jun 30 2019US$1mUS$675k

US$9m

Mar 31 2019n/an/a

US$6m

Dec 31 2018n/an/a

US$8m

Sep 30 2018n/an/a

US$6m

Jun 30 2018US$1mUS$600k

US$4m

Mar 31 2018n/an/a

US$6k

Dec 31 2017n/an/a

-US$2m

Sep 30 2017n/an/a

-US$5m

Jun 30 2017US$2mUS$600k

-US$5m

Mar 31 2017n/an/a

US$235k

Dec 31 2016n/an/a

US$384k

Sep 30 2016n/an/a

US$3m

Jun 30 2016US$719kUS$498k

US$3m

Compensation vs Market: Najeeb's total compensation ($USD914.88K) is about average for companies of similar size in the US market ($USD770.27K).

Compensation vs Earnings: Najeeb's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: NTWK's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: NTWK's board of directors are considered experienced (4.6 years average tenure).


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

NasdaqCM:NTWK Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 May 22BuyUS$6,580Najeeb GhauriIndividual2,000US$3.29
19 May 22BuyUS$15,760Najeeb GhauriIndividual5,000US$3.18
28 Feb 22BuyUS$12,000Najeeb GhauriIndividual3,000US$4.00
11 Jan 22SellUS$164,900Naeem GhauriIndividual40,000US$4.19
11 Jan 22SellUS$42,000Naeem GhauriIndividual10,000US$4.20
23 Nov 21BuyUS$16,840Najeeb GhauriIndividual4,000US$4.21
16 Nov 21BuyUS$24,676Najeeb GhauriIndividual4,955US$4.98
01 Oct 21BuyUS$23,150Najeeb GhauriIndividual5,000US$4.63

Ownership Breakdown

What is the ownership structure of NTWK?
Owner TypeNumber of SharesOwnership Percentage
Hedge Funds1,149,89410.2%
Institutions1,508,20013.4%
Individual Insiders2,078,00318.5%
General Public6,516,44257.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 42.07% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.28%
Najeeb Ghauri
818,656$2.5m0.86%no data
5.15%
Renaissance Technologies LLC
579,401$1.7m-5.66%no data
5.07%
Topline Capital Partners, LLC
570,493$1.7m0%no data
5.04%
Todd Felte
567,457$1.7m0%no data
4.67%
The Vanguard Group, Inc.
525,285$1.6m0%no data
3.56%
Naeem Ghauri
400,689$1.2m0%no data
2.6%
BlackRock, Inc.
292,806$884.3k0.15%no data
2.01%
Dimensional Fund Advisors LP
226,469$683.9k1%no data
0.9%
Mark Caton
101,582$306.8k0%no data
0.77%
Geode Capital Management, LLC
87,185$263.3k0.49%no data
0.74%
Bridgeway Capital Management, LLC
83,200$251.3k0%0.01%
0.72%
Patti L. McGlasson
81,050$244.8k0%no data
0.59%
Acadian Asset Management LLC
66,421$200.6k0%no data
0.48%
State Street Global Advisors, Inc.
53,457$161.4k2.3%no data
0.44%
Janney Montgomery Scott LLC, Asset Management Arm
49,250$148.7k-26.22%no data
0.36%
Perritt Capital Management, Inc.
40,500$122.3k-10%0.09%
0.35%
Malea Farsai
39,811$120.2k0%no data
0.27%
Roger Almond
30,000$90.6k0%no data
0.24%
Henry Tolentino
27,313$82.5k0%no data
0.24%
RBC Global Asset Management Inc.
27,200$82.1k0%no data
0.23%
Northern Trust Global Investments
26,389$79.7k1.4%no data
0.14%
Two Sigma Advisers, LP
16,100$48.6k-10.56%no data
0.1%
Syed Kazmi
11,445$34.6k0%no data
0.085%
LSV Asset Management
9,523$28.8k0%no data
0.018%
Lord, Abbett & Co. LLC
2,048$6.2k0%no data

Company Information

NetSol Technologies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: NetSol Technologies, Inc.
  • Ticker: NTWK
  • Exchange: NasdaqCM
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$33.998m
  • Shares outstanding: 11.26m
  • Website: https://www.netsoltech.com

Number of Employees


Location

  • NetSol Technologies, Inc.
  • 23975 Park Sorrento
  • Suite 250
  • Calabasas
  • California
  • 91302
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTWKNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 1998
NS9BDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1998

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.