NetScout Systems
Market Cap
US$2.0b
Last Updated
2021/04/10 22:04 UTC
Data Sources
Company Financials +
Executive Summary
NetScout Systems, Inc. provides service assurance, security, and business analytics for digital business services against disruptions in availability, performance, and security. More Details
Rewards
Risk Analysis
No risks detected for NTCT from our risk checks.
Snowflake Analysis
Solid track record with adequate balance sheet.
Similar Companies
Share Price & News
How has NetScout Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NTCT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NTCT's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-3.5%
NTCT
0.2%
US Communications
1.6%
US Market
1 Year Return
-3.2%
NTCT
30.8%
US Communications
55.3%
US Market
Return vs Industry: NTCT underperformed the US Communications industry which returned 30.8% over the past year.
Return vs Market: NTCT underperformed the US Market which returned 55.3% over the past year.
Shareholder returns
| NTCT | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.5% | 0.2% | 1.6% |
| 30 Day | -5.5% | 7.9% | 4.1% |
| 90 Day | -3.7% | 12.6% | 5.5% |
| 1 Year | -3.2%-3.2% | 34.1%30.8% | 58.1%55.3% |
| 3 Year | 3.2%3.2% | 23.7%15.6% | 63.8%53.3% |
| 5 Year | 23.1%23.1% | 103.1%80.4% | 120.2%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is NetScout Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is NetScout Systems, Inc.'s (NASDAQ:NTCT) Stock Price Struggling As A Result Of Its Mixed Financials?1 month ago | Simply Wall St
Our Take On The Returns On Capital At NetScout Systems (NASDAQ:NTCT)1 month ago | Simply Wall St
A Quick Analysis On NetScout Systems' (NASDAQ:NTCT) CEO CompensationValuation
Is NetScout Systems undervalued compared to its fair value and its price relative to the market?
33.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NTCT ($27.8) is trading below our estimate of fair value ($41.64)
Significantly Below Fair Value: NTCT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NTCT is poor value based on its PE Ratio (133.1x) compared to the US Communications industry average (37.4x).
PE vs Market: NTCT is poor value based on its PE Ratio (133.1x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: NTCT is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: NTCT is good value based on its PB Ratio (1x) compared to the US Communications industry average (2.7x).
Future Growth
How is NetScout Systems forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
49.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NTCT's forecast earnings growth (49.3% per year) is above the savings rate (2%).
Earnings vs Market: NTCT's earnings (49.3% per year) are forecast to grow faster than the US market (18.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NTCT's revenue (4.4% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: NTCT's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NTCT's Return on Equity is forecast to be high in 3 years time
Past Performance
How has NetScout Systems performed over the past 5 years?
2.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTCT has high quality earnings.
Growing Profit Margin: NTCT's current net profit margins (1.8%) are higher than last year (1%).
Past Earnings Growth Analysis
Earnings Trend: NTCT has become profitable over the past 5 years, growing earnings by 2.2% per year.
Accelerating Growth: NTCT's earnings growth over the past year (69.6%) exceeds its 5-year average (2.2% per year).
Earnings vs Industry: NTCT earnings growth over the past year (69.6%) exceeded the Communications industry -4%.
Return on Equity
High ROE: NTCT's Return on Equity (0.8%) is considered low.
Financial Health
How is NetScout Systems's financial position?
Financial Position Analysis
Short Term Liabilities: NTCT's short term assets ($762.6M) exceed its short term liabilities ($396.2M).
Long Term Liabilities: NTCT's short term assets ($762.6M) do not cover its long term liabilities ($771.9M).
Debt to Equity History and Analysis
Debt Level: NTCT's debt to equity ratio (22.7%) is considered satisfactory.
Reducing Debt: NTCT's debt to equity ratio has increased from 9.9% to 22.7% over the past 5 years.
Debt Coverage: NTCT's debt is well covered by operating cash flow (50.9%).
Interest Coverage: NTCT's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Dividend
What is NetScout Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NTCT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NTCT'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 NTCT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NTCT'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 NTCT'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?
14.3yrs
Average management tenure
CEO
Anil Singhal (66 yo)
36.83yrs
Tenure
US$2,816,309
Compensation
Mr. Anil K. Singhal co-founded NetScout Systems Inc. in June 1984 and has been its Chief Executive Officer and Director since June 1984. Mr. Singhal has been Chairman of the Board since January 19, 2007 an...
CEO Compensation Analysis
Compensation vs Market: Anil's total compensation ($USD2.82M) is about average for companies of similar size in the US market ($USD3.68M).
Compensation vs Earnings: Anil's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NTCT's management team is seasoned and experienced (14.3 years average tenure).
Board Members
Experienced Board: NTCT's board of directors are considered experienced (4.8 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NetScout Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: NetScout Systems, Inc.
- Ticker: NTCT
- Exchange: NasdaqGS
- Founded: 1984
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$2.042b
- Shares outstanding: 73.44m
- Website: https://www.netscout.com
Number of Employees
Location
- NetScout Systems, Inc.
- 310 Littleton Road
- Westford
- Massachusetts
- 1886
- United States
Listings
Biography
NetScout Systems, Inc. provides service assurance, security, and business analytics for digital business services against disruptions in availability, performance, and security. The company offers nGeniusO...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 22:04 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.