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 and slightly overvalued.


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

1.2%

NTCT

2.9%

US Communications

1.0%

US Market


1 Year Return

-10.2%

NTCT

1.6%

US Communications

8.0%

US Market

Return vs Industry: NTCT underperformed the US Communications industry which returned 1.6% over the past year.

Return vs Market: NTCT underperformed the US Market which returned 8% over the past year.


Shareholder returns

NTCTIndustryMarket
7 Day1.2%2.9%1.0%
30 Day-6.1%-3.0%-0.07%
90 Day-14.5%-14.9%-1.0%
1 Year-10.2%-10.2%3.9%1.6%10.4%8.0%
3 Year-25.5%-25.5%53.0%43.2%46.2%36.7%
5 Year-37.2%-37.2%96.6%75.2%64.3%46.2%

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

Valuation

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

18.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTCT ($22.17) is trading below our estimate of fair value ($27.26)

Significantly Below Fair Value: NTCT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NTCT is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: NTCT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NTCT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NTCT is good value based on its PB Ratio (0.8x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

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

109.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTCT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NTCT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NTCT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NTCT's revenue (2.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NTCT's revenue (2.4% 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


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

Earnings Trend: NTCT is unprofitable, and losses have increased over the past 5 years at a rate of -31.5% per year.

Accelerating Growth: Unable to compare NTCT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NTCT is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (23.8%).


Return on Equity

High ROE: NTCT has a negative Return on Equity (-2%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NTCT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NTCT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is NetScout Systems's financial position?


Financial Position Analysis

Short Term Liabilities: NTCT's short term assets ($675.9M) exceeds its short term liabilities ($349.6M)

Long Term Liabilities: NTCT's short term assets (675.9M) do not cover its long term liabilities (833.0M)


Debt to Equity History and Analysis

Debt Level: NTCT's debt to equity ratio (24.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if NTCT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NTCT's debt is well covered by operating cash flow (34.8%).

Interest Coverage: NTCT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: NTCT has a low level of unsold assets or inventory.

Debt Coverage by Assets: NTCT's debt is covered by short term assets (assets are 1.351700x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NTCT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NTCT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

  • Explore strong dividend paying companies in the Tech industry.

Management

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

12.5yrs

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

Compensation vs. Market: Anil's total compensation ($USD2.75M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Anil's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

12.5yrs

Average Tenure

61yo

Average Age

Experienced Management: NTCT's management team is seasoned and experienced (12.5 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

65yo

Average Age

Experienced Board: NTCT's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Anil Singhal (65yo)

    Co-Founder

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

    Vice Chairman & COO

    • Tenure: 0.7yrs
    • Compensation: US$1.62m
  • Thor Wallace

    Chief Information Officer & Senior VP

    • Tenure: 2.8yrs
  • John Downing (61yo)

    Executive Vice President of Worldwide Sales Operations

    • Tenure: 12.8yrs
    • Compensation: US$1.40m
  • Bruce Kelley (56yo)

    CTO, Senior VP & Service Provider

    • Tenure: 18.8yrs
  • Jean Bua (60yo)

    Executive VP

    • Tenure: 7.9yrs
    • Compensation: US$1.43m
  • Chris Gaebler

    Chief Marketing Officer

    • Tenure: 1.4yrs
  • Jeff Levinson

    VP, General Counsel & Secretary

    • Tenure: 13.9yrs
  • Kevin Keough

    Senior Vice President of Corporate Development

    • Tenure: 4.3yrs
  • 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: 0.7yrs
    • Compensation: US$1.62m
  • Joe Hadzima (67yo)

    Independent Director

    • Tenure: 21.3yrs
    • Compensation: US$265.05k
  • Vivian Vitale (65yo)

    Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$116.83k
  • Bob Donahue (70yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$275.80k
  • Sue Spradley (58yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$247.38k
  • Chris Perretta (61yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$250.30k
  • Al Grasso (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • 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$1.682b
  • 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 Analysis2019/10/21 23:39
End of Day Share Price2019/10/21 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.