NetSol Technologies
Market Cap
US$50.9m
Last Updated
2021/01/16 23:07 UTC
Data Sources
Company Financials
Executive Summary
NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and fair 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: NTWK's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
6.1%
NTWK
-2.3%
US Software
-1.0%
US Market
1 Year Return
18.1%
NTWK
38.5%
US Software
19.6%
US Market
Return vs Industry: NTWK underperformed the US Software industry which returned 38.5% over the past year.
Return vs Market: NTWK underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| NTWK | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.1% | -2.3% | -1.0% |
| 30 Day | 12.3% | -2.4% | 2.2% |
| 90 Day | 53.3% | 1.3% | 11.5% |
| 1 Year | 18.1%18.1% | 39.4%38.5% | 22.3%19.6% |
| 3 Year | -12.6%-12.6% | 124.9%117.7% | 45.3%35.7% |
| 5 Year | -36.2%-36.2% | 251.5%233.2% | 124.8%99.8% |
Long-Term 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
6 days ago | Simply Wall St
Has NetSol Technologies, Inc.'s (NASDAQ:NTWK) Impressive Stock Performance Got Anything to Do With Its Fundamentals?1 month ago | Simply Wall St
Will The ROCE Trend At NetSol Technologies (NASDAQ:NTWK) Continue?2 months ago | Simply Wall St
Calculating The Intrinsic Value Of NetSol Technologies, Inc. (NASDAQ:NTWK)Valuation
Is NetSol Technologies undervalued compared to its fair value and its price relative to the market?
14.76x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NTWK ($4.37) is trading above our estimate of fair value ($2.31)
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 (14.8x) compared to the US Software industry average (58.9x).
PE vs Market: NTWK is good value based on its PE Ratio (14.8x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NTWK's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NTWK is good value based on its PB Ratio (1x) compared to the US Software industry average (9.5x).
Next Steps
Future Growth
How is NetSol Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
12.2%
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.
Next Steps
- Examine whether NetSol Technologies is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Explore growth companies in the Software industry.
Past Performance
How has NetSol Technologies performed over the past 5 years?
38.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTWK has high quality earnings.
Growing Profit Margin: NTWK's current net profit margins (6.3%) are lower than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: NTWK has become profitable over the past 5 years, growing earnings by 38.7% 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 (-39.6%) over the past year, making it difficult to compare to the Software industry average (14.3%).
Return on Equity
High ROE: NTWK's Return on Equity (7.6%) 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 ($52.7M) exceed its short term liabilities ($19.7M).
Long Term Liabilities: NTWK's short term assets ($52.7M) exceed its long term liabilities ($2.8M).
Debt to Equity History and Analysis
Debt Level: NTWK's debt to equity ratio (18.1%) is considered satisfactory.
Reducing Debt: NTWK's debt to equity ratio has increased from 5.2% to 18.1% over the past 5 years.
Debt Coverage: NTWK's debt is well covered by operating cash flow (76.6%).
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?
5.0yrs
Average management tenure
CEO
Najeeb Ghauri (66 yo)
14.25yrs
Tenure
US$845,586
Compensation
Mr. Najeeb Ullah Ghauri co-founded NetSol Technologies, Inc. and has been its Chief Executive since October 2006. Mr. Ghauri served as the Head of NetSol Global Sales at NetSol Technologies, Inc. He served...
CEO Compensation Analysis
Compensation vs Market: Najeeb's total compensation ($USD845.59K) is above average for companies of similar size in the US market ($USD533.86K).
Compensation vs Earnings: Najeeb's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 14.25yrs | US$845.59k | 6.7% $ 3.4m | |
| Co-Founder | 0.083yr | no data | 3.49% $ 1.8m | |
| Chief Financial Officer | 7.33yrs | US$304.65k | 0.22% $ 112.9k | |
| Senior VP of Legal & Corporate Affairs | 17yrs | US$272.18k | 0.68% $ 346.0k | |
| Corporate Counsel & Director | 2.58yrs | no data | 0.34% $ 174.0k | |
| Founder & Chief Executive Officer of NETSOL Technologies Ltd. Pakistan | no data | no data | no data | |
| Chief Financial Officer & Company Secretary of Netsol Technologies Ltd | 7.33yrs | no data | no data | |
| Investor Relations | 5yrs | no data | no data | |
| Managing Director of Australia | 3yrs | no data | no data | |
| President of China | 2.33yrs | no data | no data | |
| Regional Chief Operating Officer of APAC | 2yrs | no data | no data | |
| Chief Innovation Officer | no data | no data | no data |
5.0yrs
Average Tenure
55yo
Average Age
Experienced Management: NTWK's management team is seasoned and experienced (5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | 14.25yrs | US$845.59k | 6.7% $ 3.4m | |
| Corporate Counsel & Director | 2.58yrs | no data | 0.34% $ 174.0k | |
| Member of Advisory Board | 2yrs | US$114.38k | no data | |
| Independent Director | 14yrs | US$111.64k | 0.86% $ 435.2k | |
| Member of Advisory Board | 3.33yrs | no data | no data | |
| Independent Director | 2.58yrs | US$96.24k | 0.23% $ 119.4k | |
| Independent Director | 1.58yrs | US$89.43k | 0.098% $ 50.0k |
2.6yrs
Average Tenure
69yo
Average Age
Experienced Board: NTWK's board of directors are not considered experienced ( 2.6 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: NTWK 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$50.869m
- Shares outstanding: 11.64m
- Website: https://www.netsoltech.com
Number of Employees
Location
- NetSol Technologies, Inc.
- 23975 Park Sorrento
- Suite 250
- Calabasas
- California
- 91302
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NTWK | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Sep 1998 |
| NS9B | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1998 |
Biography
NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Asc...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 23:07 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/06/30 |
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.