Netapp, Inc.

NTAP

Computer Storage Devices

Mkt Cap

$24.63B

PE

26.20

Debt

$2.791B

Cash

$1.826B

EV

$25.59B

FCF

$1.159B

Market Cap

$24.63B

P/E Ratio

26.20

Debt

$2.791B

Cash

$1.826B

EV

$25.59B

FCF

$1.159B

Charts data: {"Earnings":[{"time":"2015-04-23","value":559900000},{"time":"2016-04-28","value":229000000},{"time":"2017-04-27","value":509000000},{"time":"2018-04-26","value":76000000},{"time":"2019-04-25","value":1169000000},{"time":"2020-04-23","value":819000000},{"time":"2021-04-29","value":730000000},{"time":"2022-04-28","value":937000000},{"time":"2023-04-27","value":1274000000}],"Sales":[{"time":"2015-04-23","value":6122700000},{"time":"2016-04-28","value":5546000000},{"time":"2017-04-27","value":5519000000},{"time":"2018-04-26","value":5919000000},{"time":"2019-04-25","value":6146000000},{"time":"2020-04-23","value":5412000000},{"time":"2021-04-29","value":5744000000},{"time":"2022-04-28","value":6318000000},{"time":"2023-04-27","value":6362000000}],"Net Margins":[{"time":"2015-04-23","value":0.09144658402338837},{"time":"2016-04-28","value":0.04129102055535521},{"time":"2017-04-27","value":0.09222685269070484},{"time":"2018-04-26","value":0.012840006757898294},{"time":"2019-04-25","value":0.19020501138952164},{"time":"2020-04-23","value":0.15133037694013304},{"time":"2021-04-29","value":0.1270891364902507},{"time":"2022-04-28","value":0.14830642608420386},{"time":"2023-04-27","value":0.20025149324111916}],"Assets":[{"time":"2015-04-23","value":9401200000},{"time":"2016-04-28","value":10037000000},{"time":"2017-04-27","value":9493000000},{"time":"2018-04-26","value":9865000000},{"time":"2019-04-25","value":8741000000},{"time":"2020-04-23","value":7522000000},{"time":"2021-04-29","value":9360000000},{"time":"2022-04-28","value":10026000000},{"time":"2023-04-27","value":9818000000}],"Stockholders Equity":[{"time":"2015-04-23","value":3414100000},{"time":"2016-04-28","value":2881000000},{"time":"2017-04-27","value":2780000000},{"time":"2018-04-26","value":2067000000},{"time":"2019-04-25","value":1090000000},{"time":"2020-04-23","value":242000000},{"time":"2021-04-29","value":685000000},{"time":"2022-04-28","value":838000000},{"time":"2023-04-27","value":1159000000}],"ROE":[{"time":"2015-04-23","value":0.16399636800328052},{"time":"2016-04-28","value":0.07948628948281847},{"time":"2017-04-27","value":0.1830935251798561},{"time":"2018-04-26","value":0.036768263183357526},{"time":"2019-04-25","value":1.0724770642201835},{"time":"2020-04-23","value":3.384297520661157},{"time":"2021-04-29","value":1.0656934306569343},{"time":"2022-04-28","value":1.1181384248210025},{"time":"2023-04-27","value":1.0992234685073339}],"ROA":[{"time":"2015-04-23","value":0.07621367485001915},{"time":"2016-04-28","value":0.034671714655773636},{"time":"2017-04-27","value":0.07005161698093332},{"time":"2018-04-26","value":0.1181956411556006},{"time":"2019-04-25","value":0.14506349387941883},{"time":"2020-04-23","value":0.12563148098909865},{"time":"2021-04-29","value":0.11014957264957265},{"time":"2022-04-28","value":0.1153999601037303},{"time":"2023-04-27","value":0.10857608474231004}]}

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, NetApp ElementOS software, and NetApp SANtricity software; and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp FlexPod, NetApp E/EF series, NetApp StorageGRID, and NetApp SolidFire. It also provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, NetApp Cloud Sync, NetApp Cloud Tiering, NetApp Cloud Backup, NetApp Cloud Data Sense, and NetApp Cloud Volumes Edge Cache; and cloud operations services, such as NetApp Cloud Insights, Spot Ocean Kubernetes Suite, Spot Security, Spot Eco, and Spot CloudCheckr. In addition, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Further, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and telecommunication markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.

Sector

PSTG

10-Q
10/27/23
10-Q
7/28/23
10-K
4/28/23
10-Q
1/27/23
10-Q
10/28/22
10-Q
7/29/22
10-K
4/29/22
10-Q
1/28/22
10-Q
10/29/21
10-Q
7/30/21
10-K
4/30/21
10-Q
1/29/21
10-Q
10/30/20
10-Q
7/31/20
10-K
4/24/20
10-Q
1/24/20
10-Q
10/25/19
10-Q
7/26/19
10-K
4/26/19
10-Q
1/25/19
10-Q
10/26/18
10-Q
7/27/18
10-K
4/27/18
10-Q
1/26/18

DCF

Discounted Cash Flow Valuation of Netapp, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.159B	$1.18B	$1.201B	$1.223B	$1.245B	$1.267B	$1.29B	$1.314B	$1.337B	$1.361B	$1.386B	$13.86B
DCF		$1.026B	$908.3M	$804.1M	$711.8M	$630.1M	$557.8M	$493.8M	$437.1M	$387M	$342.6M	$3.426B
Value	$9.724B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 18%

Earnings Stability 46%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Net Margin	9.1%	4.1%	9.2%	1.3%	19%	15%	13%	15%	20%	15%
ROA	7.6%	3.5%	7%	12%	15%	13%	11%	12%	11%	13%
ROE	16%	7.9%	18%	3.7%	110%	340%	110%	110%	110%	95%

What is the average Net Margin?

The average Net Margin over the past 5 years is +13.83%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.25%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.05%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.44%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +129.61%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +8.94%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Debt FCF	-	2.87	2.76	1.16	1.66	1.22	2.25	2.93	2.75	2.41
Debt Equity	0.44	0.81	0.81	0.75	1.78	4.74	3.84	3.44	2.06	2.81
MIN
Graham Stability	-	-	-	18%	100%	100%	100%	100%	100%	18%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.41.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.37.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.18.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	04-2016	04-2018	04-2020	04-2022	Trend
Revenue	2%	1.5%	5.5%	0.7%	1.2%
Net Income	28%	76%	16%	36%	-12%
Stockholders Equity	-12%	-11%	69%	38%	13%
FCF	0.92%	-8.2%	-2.5%	-12%	-1.3%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +1.45%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.24%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +75.74%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -12.5%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -10.93%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +13.12%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -8.22%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.28%.