NasdaqGS:NTAP

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with adequate balance sheet and pays a dividend.

Risks

  • NetApp has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

0.04%

NasdaqGS:NTAP

4.5%

US Tech

0.9%

US Market


1 Year Return

-42.6%

NasdaqGS:NTAP

-3.8%

US Tech

0.3%

US Market

NTAP underperformed the Tech industry which returned -6.4% over the past year.

NTAP underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

NTAPIndustryMarket
7 Day0.04%4.5%0.9%
30 Day-20.9%2.8%-1.9%
90 Day-29.9%11.0%1.6%
1 Year-41.2%-42.6%-2.1%-3.8%2.6%0.3%
3 Year42.9%34.4%92.4%77.1%41.0%31.8%
5 Year26.4%13.5%101.0%80.5%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

11.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

NetApp's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

NetApp's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

NetApp is good value based on earnings compared to the US Tech industry average.

NetApp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

NetApp is poor value based on expected growth next year.


Price Based on Value of Assets

NetApp is overvalued based on assets compared to the US Tech industry average.


Next Steps

Future Growth

How is NetApp expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NetApp's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

NetApp's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

NetApp's revenue growth is positive but not above the United States of America market average.

NetApp's earnings growth is positive but not above the United States of America market average.

NetApp's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NetApp is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has NetApp performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NetApp's year on year earnings growth rate has been positive over the past 5 years.

NetApp's 1-year earnings growth exceeds its 5-year average (336.1% vs 7.7%)

NetApp's earnings growth has exceeded the US Tech industry average in the past year (336.1% vs 76.8%).


Return on Equity

Whilst NetApp made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

NetApp used its assets more efficiently than the US Tech industry average last year based on Return on Assets.


Return on Capital Employed

NetApp has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NetApp's financial position?


Financial Position Analysis

NetApp is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NetApp's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NetApp's level of debt (182.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (39% vs 182.5% today).

Debt is well covered by operating cash flow (84.1%, greater than 20% of total debt).

NetApp earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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

4.35%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase NetApp before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

NetApp's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

NetApp's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, NetApp has been paying a dividend for less than 10 years.

Dividend payments have increased, but NetApp only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of NetApp's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

George Kurian (52yo)

4.2yrs

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

George's remuneration is about average for companies of similar size in United States of America.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

The tenure for the NetApp management team is about average.


Board Age and Tenure

5.0yrs

Average Tenure

60.5yo

Average Age

The tenure for the NetApp board of directors is about average.


Insider Trading

NetApp individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,350,99025 Jun 19
Matthew Fawcett
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares38,195
Max PriceUS$61.55
SellUS$1,454,30220 Jun 19
Joel Reich
EntityIndividual
Shares23,650
Max PriceUS$61.49
SellUS$3,229,49804 Jun 19
Ronald Pasek
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares55,215
Max PriceUS$58.49
SellUS$1,685,22904 Jun 19
Joel Reich
EntityIndividual
Shares27,813
Max PriceUS$60.59
SellUS$621,44305 Sep 18
Joel Reich
EntityIndividual
Shares7,157
Max PriceUS$86.83

Ownership Breakdown


Management Team

  • Henri Richard (62yo)

    Executive Vice President of Worldwide Field & Customer Operations

    • Tenure: 3.3yrs
    • Compensation: US$5.91m
  • Bill Miller

    Senior VP & Chief Information Officer

    • Tenure: 2.8yrs
  • James Whitemore (54yo)

    VP & Interim Chief Marketing Officer

    • Tenure: 0.6yrs
  • Matt Fawcett (51yo)

    Senior VP

    • Tenure: 8.9yrs
    • Compensation: US$3.34m
  • Ron Pasek (58yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$5.51m
  • George Kurian (52yo)

    CEO, President & Director

    • Tenure: 4.2yrs
    • Compensation: US$13.16m
  • Debra McCowan (47yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Scott Allen (51yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.0yrs
  • Jeff Bergmann

    Vice President of Corporate Finance

    • Tenure: 3.3yrs
    • Compensation: US$667.50k
  • Kris Newton

    VP of Corporate Communications & Investor Relations

    • Tenure: 1.6yrs

Board Members

  • George Shaheen (75yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$337.06k
  • Rick Wallace (59yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$330.40k
  • Jerry Held (71yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$330.40k
  • Mike Nevens (69yo)

    Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: US$435.40k
  • Kathy Hill (62yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$362.90k
  • Deborah Kerr (47yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$335.40k
  • George Kurian (52yo)

    CEO, President & Director

    • Tenure: 4.2yrs
    • Compensation: US$13.16m
  • Scott Schenkel (51yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$355.40k

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$11.233b
  • Shares outstanding: 238.95m
  • 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
NTAPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1995

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 S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:11
End of Day Share Price2019/08/19 00:00
Earnings2019/07/26
Annual Earnings2019/04/26


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.