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NTAP

NetApp NasdaqGS:NTAP Stock Report

Last Price

US$62.78

Market Cap

US$13.9b

7D

-6.7%

1Y

-24.4%

Updated

04 Jul, 2022

Data

Company Financials +
NTAP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health5/6
Dividends3/6

NTAP Stock Overview

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide.

NetApp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NetApp
Historical stock prices
Current Share PriceUS$62.78
52 Week HighUS$96.82
52 Week LowUS$61.59
Beta1.23
1 Month Change-11.71%
3 Month Change-22.64%
1 Year Change-24.35%
3 Year Change3.91%
5 Year Change62.77%
Change since IPO4,799.90%

Recent News & Updates

Jun 23
Is NetApp, Inc. (NASDAQ:NTAP) Trading At A 23% Discount?

Is NetApp, Inc. (NASDAQ:NTAP) Trading At A 23% Discount?

Does the June share price for NetApp, Inc. ( NASDAQ:NTAP ) reflect what it's really worth? Today, we will estimate the...

Shareholder Returns

NTAPUS TechUS Market
7D-6.7%-2.1%-2.2%
1Y-24.4%-2.1%-21.2%

Return vs Industry: NTAP underperformed the US Tech industry which returned -2.1% over the past year.

Return vs Market: NTAP underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is NTAP's price volatile compared to industry and market?
NTAP volatility
NTAP Average Weekly Movement4.8%
Tech Industry Average Movement9.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: NTAP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NTAP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199212,000George Kurianhttps://www.netapp.com

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, NetApp ElementOS software, and NetApp SANtricity software; and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp FlexPod, NetApp E/EF series, NetApp StorageGRID, and NetApp SolidFire.

NetApp Fundamentals Summary

How do NetApp's earnings and revenue compare to its market cap?
NTAP fundamental statistics
Market CapUS$13.89b
Earnings (TTM)US$937.00m
Revenue (TTM)US$6.32b

14.8x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTAP income statement (TTM)
RevenueUS$6.32b
Cost of RevenueUS$2.10b
Gross ProfitUS$4.22b
Other ExpensesUS$3.28b
EarningsUS$937.00m

Last Reported Earnings

Apr 29, 2022

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)4.24
Gross Margin66.79%
Net Profit Margin14.83%
Debt/Equity Ratio314.6%

How did NTAP perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

48%

Payout Ratio

Does NTAP pay a reliable dividends?

See NTAP dividend history and benchmarks
When do you need to buy NTAP by to receive an upcoming dividend?
NetApp dividend dates
Ex Dividend DateJul 07 2022
Dividend Pay DateJul 27 2022
Days until Ex dividend2 days
Days until Dividend pay date22 days

Does NTAP pay a reliable dividends?

See NTAP dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is NTAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NTAP?

Other financial metrics that can be useful for relative valuation.

NTAP 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/Revenue2x
Enterprise Value/EBITDA9.3x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does NTAP's PE Ratio compare to its peers?

NTAP PE Ratio vs Peers
The above table shows the PE ratio for NTAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.5x
WDC Western Digital
7.5x0.3%US$13.6b
STX Seagate Technology Holdings
8x-0.4%US$14.8b
HPE Hewlett Packard Enterprise
4.5x-0.9%US$16.8b
DELL Dell Technologies
5.9x0.5%US$31.6b
NTAP NetApp
14.8x6.9%US$13.9b

Price-To-Earnings vs Peers: NTAP is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the peer average (6.5x).


Price to Earnings Ratio vs Industry

How does NTAP's PE Ratio compare vs other companies in the US Tech Industry?

Price-To-Earnings vs Industry: NTAP is expensive based on its Price-To-Earnings Ratio (14.8x) compared to the US Tech industry average (14.6x)


Price to Earnings Ratio vs Fair Ratio

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

NTAP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.8x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: NTAP is good value based on its Price-To-Earnings Ratio (14.8x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).


Share Price vs Fair Value

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

Below Fair Value: NTAP ($62.78) is trading below our estimate of fair value ($83.04)

Significantly Below Fair Value: NTAP is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: NTAP is poor value based on its PEG Ratio (2.1x)


Discover undervalued companies

Future Growth

How is NetApp forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTAP's forecast earnings growth (6.9% per year) is above the savings rate (1.9%).

Earnings vs Market: NTAP's earnings (6.9% per year) are forecast to grow slower than the US market (13.6% per year).

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

Revenue vs Market: NTAP's revenue (5.3% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: NTAP'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: NTAP's Return on Equity is forecast to be very high in 3 years time (98.8%).


Discover growth companies

Past Performance

How has NetApp performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NTAP has high quality earnings.

Growing Profit Margin: NTAP's current net profit margins (14.8%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: NTAP's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: NTAP's earnings growth over the past year (28.6%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: NTAP earnings growth over the past year (28.6%) underperformed the Tech industry 67.6%.


Return on Equity

High ROE: Whilst NTAP's Return on Equity (111.81%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is NetApp's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NTAP's short term assets ($5.9B) exceed its short term liabilities ($4.0B).

Long Term Liabilities: NTAP's short term assets ($5.9B) exceed its long term liabilities ($5.2B).


Debt to Equity History and Analysis

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

Reducing Debt: NTAP's debt to equity ratio has increased from 72% to 314.6% over the past 5 years.

Debt Coverage: NTAP's debt is well covered by operating cash flow (45.9%).

Interest Coverage: NTAP's interest payments on its debt are well covered by EBIT (18.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.19%

Current Dividend Yield

Upcoming Dividend Payment

TodayJul 05 2022Ex Dividend DateJul 07 2022Dividend Pay DateJul 27 202220 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NTAP's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: NTAP's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NTAP has been paying a dividend for less than 10 years.

Growing Dividend: NTAP's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.6%), NTAP's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (44.9%), NTAP's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure


CEO

George Kurian (55 yo)

7.08yrs

Tenure

US$14,358,852

Compensation

Mr. George Kurian serves as an Independent Director of Cigna Corporation since January 2021. He has been the Chief Executive Officer of NetApp, Inc since June 1, 2015 and served as its President since May...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD14.36M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: George's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NTAP's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: NTAP's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NTAP 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

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


Key Information

  • Name: NetApp, Inc.
  • Ticker: NTAP
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Implied Market Cap: US$13.886b
  • Shares outstanding: 221.19m
  • Website: https://www.netapp.com

Number of Employees


Location

  • NetApp, Inc.
  • 3060 Olsen Drive
  • San Jose
  • California
  • 95128
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/29
Annual Earnings2022/04/29


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.