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NTCT

NetScout SystemsNasdaqGS:NTCT Stock Report

Last Price

US$30.11

Market Cap

US$2.2b

7D

-4.8%

1Y

0%

Updated

21 Jan, 2022

Data

Company Financials +
NTCT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance5/6
Financial Health5/6
Dividends0/6

NTCT Stock Overview

NetScout Systems, Inc. provides service assurance and cybersecurity solutions for protect digital business services against disruptions in the United States, Europe, the Asia Pacific, and internationally.

NetScout Systems Competitors

Cisco Systems

NasdaqGS:CSCO

US$239.1b

Arista Networks

NYSE:ANET

US$36.5b

Ubiquiti

NYSE:UI

US$17.7b

F5

NasdaqGS:FFIV

US$13.5b

Price History & Performance

Summary of all time highs, changes and price drops for NetScout Systems
Historical stock prices
Current Share PriceUS$30.11
52 Week HighUS$34.87
52 Week LowUS$24.82
Beta0.68
1 Month Change-9.58%
3 Month Change11.77%
1 Year Change0%
3 Year Change15.23%
5 Year Change-6.20%
Change since IPO118.98%

Recent News & Updates

Jan 10
The Return Trends At NetScout Systems (NASDAQ:NTCT) Look Promising

The Return Trends At NetScout Systems (NASDAQ:NTCT) Look Promising

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...

Dec 08
An Intrinsic Calculation For NetScout Systems, Inc. (NASDAQ:NTCT) Suggests It's 48% Undervalued

An Intrinsic Calculation For NetScout Systems, Inc. (NASDAQ:NTCT) Suggests It's 48% Undervalued

How far off is NetScout Systems, Inc. ( NASDAQ:NTCT ) from its intrinsic value? Using the most recent financial data...

Nov 23
These 4 Measures Indicate That NetScout Systems (NASDAQ:NTCT) Is Using Debt Reasonably Well

These 4 Measures Indicate That NetScout Systems (NASDAQ:NTCT) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Nov 08
Do NetScout Systems's (NASDAQ:NTCT) Earnings Warrant Your Attention?

Do NetScout Systems's (NASDAQ:NTCT) Earnings Warrant Your Attention?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

NTCTUS CommunicationsUS Market
7D-4.8%-6.0%-4.0%
1Y0%24.6%6.6%

Return vs Industry: NTCT underperformed the US Communications industry which returned 24.6% over the past year.

Return vs Market: NTCT underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is NTCT's price volatile compared to industry and market?
NTCT volatility
NTCT Average Weekly Movement5.3%
Communications Industry Average Movement7.8%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: NTCT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

FoundedEmployeesCEOWebsite
19842,409Anil Singhalhttps://www.netscout.com

NetScout Systems, Inc. provides service assurance and cybersecurity solutions for protect digital business services against disruptions in the United States, Europe, the Asia Pacific, and internationally. The company offers nGeniusONE management software that enables customers to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules that enable its customers to analyze and troubleshoot traffic in radio access and Wi-Fi networks. It also provides nGeniusPULSE, an active testing tool that enables enterprises to identify infrastructure performance issues and determine application availability, reliability, and performance; and nGenius Business Analytics solution, which enables service providers to analyze their network traffic.

NetScout Systems Fundamentals Summary

How do NetScout Systems's earnings and revenue compare to its market cap?
NTCT fundamental statistics
Market CapUS$2.22b
Earnings (TTM)US$37.01m
Revenue (TTM)US$844.32m

60.1x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTCT income statement (TTM)
RevenueUS$844.32m
Cost of RevenueUS$216.27m
Gross ProfitUS$628.05m
ExpensesUS$591.03m
EarningsUS$37.01m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)0.50
Gross Margin74.39%
Net Profit Margin4.38%
Debt/Equity Ratio17.5%

How did NTCT perform over the long term?

See historical performance and comparison

Valuation

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

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTCT ($30.11) is trading below our estimate of fair value ($58.72)

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 (60.1x) compared to the US Communications industry average (26.3x).

PE vs Market: NTCT is poor value based on its PE Ratio (60.1x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: NTCT is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: NTCT is good value based on its PB Ratio (1.1x) compared to the US Communications industry average (1.8x).


Future Growth

How is NetScout Systems forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTCT's forecast earnings growth (20.5% per year) is above the savings rate (2%).

Earnings vs Market: NTCT's earnings (20.5% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTCT's revenue (3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: NTCT's revenue (3% 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?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTCT has high quality earnings.

Growing Profit Margin: NTCT's current net profit margins (4.4%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: NTCT has become profitable over the past 5 years, growing earnings by -0.7% per year.

Accelerating Growth: NTCT's earnings growth over the past year (61.2%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: NTCT earnings growth over the past year (61.2%) exceeded the Communications industry 35%.


Return on Equity

High ROE: NTCT's Return on Equity (1.9%) is considered low.


Financial Health

How is NetScout Systems's financial position?


Financial Position Analysis

Short Term Liabilities: NTCT's short term assets ($701.6M) exceed its short term liabilities ($370.8M).

Long Term Liabilities: NTCT's short term assets ($701.6M) exceed its long term liabilities ($646.6M).


Debt to Equity History and Analysis

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

Reducing Debt: NTCT's debt to equity ratio has increased from 12.6% to 17.5% over the past 5 years.

Debt Coverage: NTCT's debt is well covered by operating cash flow (58.5%).

Interest Coverage: NTCT's interest payments on its debt are well covered by EBIT (5.6x 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?

14.8yrs

Average management tenure


CEO

Anil Singhal (67 yo)

37.58yrs

Tenure

US$2,926,747

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 ($USD2.93M) is about average for companies of similar size in the US market ($USD3.73M).

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 (14.8 years average tenure).


Board Members

Experienced Board: NTCT's board of directors are considered experienced (7.3 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 employee growth, exchange listings and data sources


Key Information

  • Name: NetScout Systems, Inc.
  • Ticker: NTCT
  • Exchange: NasdaqGS
  • Founded: 1984
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: US$2.224b
  • Shares outstanding: 73.87m
  • Website: https://www.netscout.com

Number of Employees


Location

  • NetScout Systems, Inc.
  • 310 Littleton Road
  • Westford
  • Massachusetts
  • 01886-4105
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.