NasdaqCM:NTWK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has NetSol Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTWK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.9%

NTWK

3.7%

US Software

2.4%

US Market


1 Year Return

-47.9%

NTWK

33.0%

US Software

9.2%

US Market

Return vs Industry: NTWK underperformed the US Software industry which returned 35.7% over the past year.

Return vs Market: NTWK underperformed the US Market which returned 9.3% over the past year.


Shareholder returns

NTWKIndustryMarket
7 Day-2.9%3.7%2.4%
30 Day51.3%9.5%10.2%
90 Day5.0%16.2%3.4%
1 Year-47.9%-47.9%34.0%33.0%11.6%9.2%
3 Year-20.4%-20.4%128.7%120.8%33.7%24.9%
5 Year-41.5%-41.5%206.8%188.0%59.7%41.8%

Price Volatility Vs. Market

How volatile is NetSol Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

11.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NTWK ($3.11) is trading above our estimate of fair value ($0.29)

Significantly Below Fair Value: NTWK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NTWK is good value based on its PE Ratio (11.2x) compared to the Software industry average (48.8x).

PE vs Market: NTWK is good value based on its PE Ratio (11.2x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: NTWK is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: NTWK is good value based on its PB Ratio (0.6x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is NetSol Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

56.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTWK's forecast earnings growth (56.7% per year) is above the savings rate (2.2%).

Earnings vs Market: NTWK's earnings (56.7% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTWK's revenue (5.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: NTWK's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTWK's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has NetSol Technologies performed over the past 5 years?

57.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTWK has high quality earnings.

Growing Profit Margin: NTWK's current net profit margins (5.4%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: NTWK has become profitable over the past 5 years, growing earnings by 57.3% per year.

Accelerating Growth: NTWK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTWK had negative earnings growth (-48.2%) over the past year, making it difficult to compare to the Software industry average (9.6%).


Return on Equity

High ROE: NTWK's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is NetSol Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NTWK's short term assets ($53.1M) exceed its short term liabilities ($20.6M).

Long Term Liabilities: NTWK's short term assets ($53.1M) exceed its long term liabilities ($1.9M).


Debt to Equity History and Analysis

Debt Level: NTWK's debt to equity ratio (13.4%) is considered satisfactory.

Reducing Debt: NTWK's debt to equity ratio has increased from 3.7% to 13.4% over the past 5 years.

Debt Coverage: NTWK's debt is well covered by operating cash flow (65.7%).

Interest Coverage: NTWK earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is NetSol Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NTWK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Najeeb Ghauri (65yo)

13.67yrs

Tenure

US$1,329,086

Compensation

Mr. Najeeb Ullah Ghauri 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 as ...


CEO Compensation Analysis

Compensation vs Market: Najeeb's total compensation ($USD1.33M) is above average for companies of similar size in the US market ($USD593.36K).

Compensation vs Earnings: Najeeb's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Najeeb Ghauri
Founder13.67yrsUS$1.33m6.3% $2.4m
Naeem Ghauri
Co-Founder21.42yrsno data4.18% $1.6m
Roger Almond
Chief Financial Officer6.75yrsUS$307.21k0.25% $95.3k
Patti L. McGlasson
Senior VP of Legal & Corporate Affairs16.42yrsUS$291.99k0.64% $243.0k
Salim Ghauri
Founder & Chief Executive Officer of NETSOL Technologies Ltd. Pakistanno datano datano data
Boo-Ali Siddiqui
Chief Financial Officer & Company Secretary of Netsol Technologies Ltd6.75yrsno datano data
Matt Glover
Investor Relations4.42yrsno datano data
Farooq Ghauri
Managing Director of Australia2.42yrsno datano data
Hui Liang
President of China1.75yrsno datano data
Umar Qadri
Regional Chief Operating Officer of APAC1.42yrsno datano data

5.6yrs

Average Tenure

58yo

Average Age

Experienced Management: NTWK's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Najeeb Ghauri
Founder13.67yrsUS$1.33m6.3% $2.4m
Naeem Ghauri
Co-Founder21.42yrsno data4.18% $1.6m
Malea Farsai
Corporate Counsel & Director2yrsno data0.34% $128.3k
Eugen Beckert
Member of Advisory Board1.42yrsUS$114.38kno data
Mark Caton
Independent Director13.42yrsUS$118.00k0.76% $288.1k
Shahid Burki
Independent Director17.33yrsUS$121.62k1.29% $490.0k
Georg Bauer
Member of Advisory Board2.75yrsno datano data
Henry Tolentino
Independent Director2yrsUS$95.14k0.16% $62.4k
Syed Kazmi
Independent Director1yrno data0.034% $13.1k

2.8yrs

Average Tenure

68yo

Average Age

Experienced Board: NTWK's board of directors are not considered experienced ( 2.8 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

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


Key Information

  • Name: NetSol Technologies, Inc.
  • Ticker: NTWK
  • Exchange: NasdaqCM
  • Founded: 1997
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$37.997m
  • Shares outstanding: 11.79m
  • 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

Biography

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The company offers NetSol Financial Suite (NFS), an end-to-end solution covering leasing and finance cycle for the asset finance industry; and NFS Ascent platform, a lease accounting and contract processing engine. Its NFS includes Point of Sale, a front office processing system for the financial sector; Credit Application Processing System that handles incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System that enables users to manage and maintain a contract; Wholesale Finance System (WFS) to automate and manage the floor plan/bailment activities; and Dealer Auditor Access System, a Web-based solution used with WFS. The company’s NFS Ascent comprises LeasePak, which handles various aspects of the lease or loan lifecycle; and LeasePak software-as-a-service to small and mid-sized leasing and finance companies. In addition, it offers LeaseSoft, a full lifecycle lease and finance system for funder market; and LoanSoft for consumer loan market. Further, the company provides NFS Digital that enables a sales force for the finance and leasing company to access channels, such as point of sale, field investigation, and auditing. Its NFS Digital includes mAccount, a self-service mobile solution; mPOS application, a Web and mobile enabled platform; mDealer, a mobile platform; mAuditor, which schedules visits, records audit exceptions, and tracks assets; and Mobile Field Investigator that permits applicants for detail verification. The company was founded in 1997 and is headquartered in Calabasas, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:42
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/06/30


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.