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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


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

NTCTIndustryMarket
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 Year3.2%3.2%23.7%15.6%63.8%53.3%
5 Year23.1%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

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 22:04
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.