| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
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.
Rewards
Risk Analysis
No risks detected for NTCT from our risk checks.
NetScout Systems Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$30.11 |
| 52 Week High | US$34.87 |
| 52 Week Low | US$24.82 |
| Beta | 0.68 |
| 1 Month Change | -9.58% |
| 3 Month Change | 11.77% |
| 1 Year Change | 0% |
| 3 Year Change | 15.23% |
| 5 Year Change | -6.20% |
| Change since IPO | 118.98% |
Recent News & Updates
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...
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...
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...
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
| NTCT | US Communications | US Market | |
|---|---|---|---|
| 7D | -4.8% | -6.0% | -4.0% |
| 1Y | 0% | 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
| NTCT volatility | |
|---|---|
| NTCT Average Weekly Movement | 5.3% |
| Communications Industry Average Movement | 7.8% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 2,409 | Anil Singhal | https://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
| NTCT fundamental statistics | |
|---|---|
| Market Cap | US$2.22b |
| Earnings (TTM) | US$37.01m |
| Revenue (TTM) | US$844.32m |
60.1x
P/E Ratio2.6x
P/S RatioIs NTCT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NTCT income statement (TTM) | |
|---|---|
| Revenue | US$844.32m |
| Cost of Revenue | US$216.27m |
| Gross Profit | US$628.05m |
| Expenses | US$591.03m |
| Earnings | US$37.01m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 0.50 |
| Gross Margin | 74.39% |
| Net Profit Margin | 4.38% |
| Debt/Equity Ratio | 17.5% |
How did NTCT perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:34 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/03/31 |
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.