NasdaqGS:NTAP

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Executive Summary

NetApp, Inc. provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NTAP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.9%

NTAP

4.3%

US Tech

3.8%

US Market


1 Year Return

-21.6%

NTAP

67.5%

US Tech

9.7%

US Market

Return vs Industry: NTAP underperformed the US Tech industry which returned 67.5% over the past year.

Return vs Market: NTAP underperformed the US Market which returned 9.7% over the past year.


Shareholder returns

NTAPIndustryMarket
7 Day7.9%4.3%3.8%
30 Day11.7%9.2%11.4%
90 Day9.2%13.5%6.8%
1 Year-18.6%-21.6%69.8%67.5%12.1%9.7%
3 Year31.1%21.6%115.9%104.6%36.2%27.2%
5 Year62.4%43.5%161.9%138.3%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTAP ($45.69) is trading below our estimate of fair value ($71.07)

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


Price To Earnings Ratio

PE vs Industry: NTAP is good value based on its PE Ratio (12.8x) compared to the Tech industry average (15.6x).

PE vs Market: NTAP is good value based on its PE Ratio (12.8x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: NTAP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NTAP is overvalued based on its PB Ratio (41.5x) compared to the US Tech industry average (1.5x).


Next Steps

Future Growth

How is NetApp forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTAP's earnings are forecast to decline over the next 3 years (-3.1% per year).

Earnings vs Market: NTAP's earnings are forecast to decline over the next 3 years (-3.1% per year).

High Growth Earnings: NTAP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NTAP's revenue (0.3% per year) is forecast to grow slower than the US market (8.7% per year).

High Growth Revenue: NTAP's revenue (0.3% 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 (73.8%).


Next Steps

Past Performance

How has NetApp performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTAP has high quality earnings.

Growing Profit Margin: NTAP's current net profit margins (15.1%) are lower than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: NTAP's earnings have grown significantly by 23.7% per year over the past 5 years.

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

Earnings vs Industry: NTAP had negative earnings growth (-29.9%) over the past year, making it difficult to compare to the Tech industry average (-8.5%).


Return on Equity

High ROE: Whilst NTAP's Return on Equity (338.43%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is NetApp's financial position?


Financial Position Analysis

Short Term Liabilities: NTAP's short term assets ($4.3B) exceed its short term liabilities ($3.6B).

Long Term Liabilities: NTAP's short term assets ($4.3B) exceed its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: NTAP's debt to equity ratio (627.7%) is considered high.

Reducing Debt: NTAP's debt to equity ratio has increased from 43.7% to 627.7% over the past 5 years.

Debt Coverage: NTAP's debt is well covered by operating cash flow (69.8%).

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


Balance Sheet


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NTAP's dividend (4.2%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: NTAP's dividend (4.2%) is low compared to the top 25% of dividend payers in the US market (4.22%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), NTAP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTAP's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

George Kurian (52yo)

5yrs

Tenure

US$13,164,969

Compensation

Mr. George Kurian has been the Chief Executive Officer of NetApp, Inc. since June 1, 2015 and as its President since May 20, 2016. Mr. Kurian served as an Executive Vice President of Product Operations at  ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD13.16M) is about average for companies of similar size in the US market ($USD11.49M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
George Kurian
CEO, President & Director5yrsUS$13.16m0.13% $13.7m
Matthew Fawcett
Senior VP9.75yrsUS$3.34m0.023% $2.4m
Michael Berry
Executive VP & CFO0.25yrno data0.010% $1.1m
Scott Allen
Senior VP & Chief Accounting Officer0.83yrno data0.0013% $139.3k
Jeffrey Bergmann
Vice President of Corporate Finance4.17yrsUS$667.50kno data
William Miller
Senior VP & Chief Information Officer3.67yrsno datano data
Kris Newton
VP of Corporate Communications & Investor Relations2.42yrsno datano data
James Whitemore
Senior VP & Chief Marketing Officer1.42yrsno datano data
Debra McCowan
Senior VP & Chief Human Resources Officer1.67yrsno datano data

2.4yrs

Average Tenure

51.5yo

Average Age

Experienced Management: NTAP's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
George Kurian
CEO, President & Director5yrsUS$13.16m0.13% $13.7m
George Shaheen
Independent Director16yrsUS$337.06k0.0073% $779.2k
Gerald Held
Independent Director10.5yrsUS$330.40k0.0047% $495.3k
T. Nevens
Independent Chairman of the Board5yrsUS$435.40k0.014% $1.4m
Kathryn Hill
Independent Director6.75yrsUS$362.90k0.013% $1.4m
Deepak Ahuja
Independent Director0.33yrno datano data
Deborah Kerr
Independent Director2.58yrsUS$335.40kno data
Scott Schenkel
Independent Director2.58yrsUS$355.40k0.0038% $402.9k

5.0yrs

Average Tenure

59yo

Average Age

Experienced Board: NTAP's board of directors are considered experienced (5 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

Ownership Breakdown

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


Top Shareholders

Company Information

NetApp, Inc.'s company bio, 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
  • Market Cap: US$10.630b
  • Shares outstanding: 221.18m
  • Website: https://www.netapp.com

Number of Employees


Location

  • NetApp, Inc.
  • 1395 Crossman Avenue
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTADB (Deutsche Boerse AG)YesCommon StockDEEURNov 1995
0K6FLSE (London Stock Exchange)YesCommon StockGBUSDNov 1995
NTAXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1995
NTAPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1995
NTAETLX (Eurotlx)YesCommon StockITEURNov 1995
N1TA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLJan 2020

Biography

NetApp, Inc. provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide. The company offers cloud data services, including NetApp Cloud Volumes Service for AWS, NetApp Cloud Volumes ONTAP, NetApp Cloud Sync, NetApp Cloud Secure, NetApp Cloud Tiering, NetApp SaaS Backup, NetApp Kubernetes Service, and NetApp Cloud Insights. It also provides cloud infrastructure solutions, such as FlexPod, a portfolio of pre-validated designs and integration; NetApp HCI for public cloud consumption experience; and NetApp StorageGRID, a software-defined object-based storage solution. In addition, the company offers storage systems and software, including all-flash arrays that support data management; hybrid arrays to deploy the speed of flash storage; NetApp ONTAP storage operating system; NetApp ONTAP Select, which offers robust enterprise storage services; NetApp MAX Data; NetApp FlexArray storage virtualization software; NetApp OnCommand API Services; NetApp Active IQ software; NetApp data availability services; NetApp SnapCenter backup management software; NetApp SnapMirror data replication software; NetApp MetroCluster business continuity softwar; NetApp SnapLock data compliance software; NetApp SANtricity storage operating system; and NetApp Element operating system. Further, it provides software maintenance, hardware maintenance, and other services, including professional services, global support solutions, and customer education and training. It serves the energy, financial services, government, high technology, Internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video postproduction, and telecommunications through a direct sales force and an ecosystem of partners. NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 04:30
End of Day Share Price2020/06/05 00:00
Earnings2020/04/24
Annual Earnings2020/04/24


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.