NasdaqGS:NTCT

Stock Analysis Report

Executive Summary

NetScout Systems, Inc. provides service assurance, security, and business analytics for digital business services against disruptions in availability, performance, and security.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

-2.9%

NTCT

-0.8%

US Communications

-0.6%

US Market


1 Year Return

-8.1%

NTCT

-1.6%

US Communications

0.6%

US Market

NTCT underperformed the Communications industry which returned -2.1% over the past year.

NTCT underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

NTCTIndustryMarket
7 Day-2.9%-0.8%-0.6%
30 Day6.2%2.2%2.2%
90 Day-3.3%-9.8%1.1%
1 Year-8.1%-8.1%0.6%-1.6%2.9%0.6%
3 Year-18.9%-18.9%53.4%43.7%44.6%35.2%
5 Year-49.1%-49.1%89.0%69.2%61.9%44.2%

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

3 weeks ago | Simply Wall St

Is It Time To Consider Buying NetScout Systems, Inc. (NASDAQ:NTCT)?

Valuation

Is NetScout Systems undervalued based on future cash flows and its price relative to the stock market?

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NetScout Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).

NetScout Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

NetScout Systems is loss making, we can't compare its value to the US Communications industry average.

NetScout Systems is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for NetScout Systems, we can't assess if its growth is good value.


Price Based on Value of Assets

NetScout Systems is good value based on assets compared to the US Communications industry average.


Next Steps

Future Growth

How is NetScout Systems expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

112.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NetScout Systems's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

NetScout Systems's earnings are expected to grow significantly at over 20% yearly.

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

NetScout Systems's earnings growth is expected to exceed the United States of America market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if NetScout Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has NetScout Systems performed over the past 5 years?

-31.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NetScout Systems does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare NetScout Systems's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare NetScout Systems's 1-year growth to the US Communications industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if NetScout Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if NetScout Systems has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if NetScout Systems improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is NetScout Systems's financial position?


Financial Position Analysis

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

NetScout Systems's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

NetScout Systems's level of debt (24.9%) compared to net worth is satisfactory (less than 40%).

Unable to establish if NetScout Systems's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (34.8%, greater than 20% of total debt).

NetScout Systems is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.4x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate NetScout Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate NetScout Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as NetScout Systems has not reported any payouts.

Unable to verify if NetScout Systems's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as NetScout Systems has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

12.4yrs

Average management tenure


CEO

Anil Singhal (65yo)

35.3yrs

Tenure

US$2,745,534

Compensation

Mr. Anil K. Singhal co-founded NetScout Systems Inc. in 1984 and has been its Chief Executive Officer and Director since June 1984. Mr. Singhal has been Chairman of the Board and President at NetScout Syst ...


CEO Compensation Analysis

Anil's remuneration is lower than average for companies of similar size in United States of America.

Anil's compensation has increased whilst company is loss making.


Management Age and Tenure

12.4yrs

Average Tenure

61yo

Average Age

The average tenure for the NetScout Systems management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.2yrs

Average Tenure

65yo

Average Age

The tenure for the NetScout Systems board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Anil Singhal (65yo)

    Co-Founder

    • Tenure: 35.3yrs
    • Compensation: US$2.75m
  • Michael Szabados (67yo)

    Vice Chairman & COO

    • Tenure: 0.6yrs
    • Compensation: US$1.62m
  • Thor Wallace

    Chief Information Officer & Senior VP

    • Tenure: 2.7yrs
  • John Downing (61yo)

    Executive Vice President of Worldwide Sales Operations

    • Tenure: 12.7yrs
    • Compensation: US$1.40m
  • Bruce Kelley (56yo)

    CTO, Senior VP & Service Provider

    • Tenure: 18.7yrs
  • Jean Bua (60yo)

    Executive VP

    • Tenure: 7.8yrs
    • Compensation: US$1.43m
  • Chris Gaebler

    Chief Marketing Officer

    • Tenure: 1.3yrs
  • Jeff Levinson

    VP, General Counsel & Secretary

    • Tenure: 13.8yrs
  • Kevin Keough

    Senior Vice President of Corporate Development

    • Tenure: 4.2yrs
  • Tony Piazza

    Vice President of Corporate Finance

    • Tenure: 0yrs

Board Members

  • Jack Egan (61yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$306.30k
  • Anil Singhal (65yo)

    Co-Founder

    • Tenure: 35.3yrs
    • Compensation: US$2.75m
  • Michael Szabados (67yo)

    Vice Chairman & COO

    • Tenure: 0.6yrs
    • Compensation: US$1.62m
  • Joe Hadzima (67yo)

    Independent Director

    • Tenure: 21.2yrs
    • Compensation: US$265.05k
  • Vivian Vitale (65yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$116.83k
  • Bob Donahue (70yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$275.80k
  • Sue Spradley (58yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$247.38k
  • Chris Perretta (61yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$250.30k
  • Al Grasso (60yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$247.13k

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$1.792b
  • Shares outstanding: 75.86m
  • Website: https://www.netscout.com

Number of Employees


Location

  • NetScout Systems, Inc.
  • 310 Littleton Road
  • Westford
  • Massachusetts
  • 1886
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTCTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1999
NSZDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1999

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 Analysis2019/09/20 23:40
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.