Netscout Systems Inc

Technology
EDP Services
www.netscout.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.51B
PE -4
Debt $75.00M
Cash $398.36M
EV $1.18B
FCF $164.12M

Earnings

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Sales & Net Margins

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Earnings	-$417.96M
EBIT	-$416.93M
ROE	-27%
ROA	-19%
FCF	$164.12M
Equity	$1.52B
Growth Stability	-386%
PE	-3.6
PEG	-0.38
PB	0.99
P/FCF	9.17
P/S	1.83
Price/Cash	0.26
Debt/Equity	0.05
Debt/FCF	0.46
Net Margins	-62%
Gross Margins	78%
Op. Margins	-51%
Earnings CAGR	3%
Sales Growth YoY	16%
Sales Growth QoQ	32%
Sales CAGR	-4%
FCF CAGR	-3%
Equity CAGR	-1%
Earnings Stability	0.03
Earnings Growth YoY	-137%
Earnings Growth QoQ	441%

Earnings CAGR 5Y	9%
Sales CAGR 5Y	-1%
FCF CAGR 5Y	-17%
Equity CAGR 5Y	-4%
Earnings CAGR 3Y	-4%
Sales CAGR 3Y	-4%
FCF CAGR 3Y	-30%
Equity CAGR 3Y	-11%
Market Cap	$1.51B
Revenue	$821.14M
Assets	$2.17B
Total Debt	$75.00M
Cash	$398.36M
Shares Outstanding	71.53M
EV	1.18B
Earnings Score	6%
Moat Score	2%
Safety Score	66%
Final Score	25%
Working Capital	310.39M
Current Ratio	1.81
Gross Profit	$637.76M
Shares Growth 3y	-1%
Equity Growth QoQ	4%
Equity Growth YoY	-20%

Assets & ROA

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Stockholders Equity & ROE

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NetScout Systems Inc is a provider of service assurance and cybersecurity solutions to enterprise and government networks. It bases its solutions on proprietary adaptive service intelligence technology, which helps customers monitor and identify performance issues and provides insight into network-based security threats. These solutions also deliver real-time and historical information, which provides insight to restore service and understand the quality of user experience. The company derives revenue primarily from the sale of network management tools and security solutions. Its geographical regions include USA, Europe, Asia, and Rest of the World.

SEC Filings

Direct access to Netscout Systems Inc (NTCT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31

Sector Comparison

How does Netscout Systems Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Netscout Systems Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 3%

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Netscout Systems Inc Discounted Cash Flow

Fully customizable DCF calculator online for Netscout Systems Inc.

Years

Calculation mode

= $1.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$164M	$159M	$155M	$151M	$146M	$142M	$138M	$134M	$130M	$127M	$123M	$1.2B
DCF		$145M	$128M	$113M	$100M	$88M	$78M	$69M	$61M	$54M	$47M	$475M
Value	$1.4B

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.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	-3%	3%	8%	-8%	-0%	2%	4%	7%	-18%	-62%
ROA	-	2%	-0%	-2%	1%	1%	2%	3%	-6%	-19%
ROE	-	1%	4%	-4%	-0%	1%	2%	3%	-8%	-27%

Bad Net Margins (-62.42%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	1.51	2.9	4.35	2.19	1.73	1.23	0.68	1.91	0.46
Debt over Equity	0.12	0.12	0.29	0.27	0.23	0.17	0.17	0.05	0.05	0.05
Growth Stability	-	-	-	-260%	-21%	100%	-	100%	-386%	-386%

Good Debt/FCF ratio (0.46)

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

Good Debt/Equity ratio (0.05)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-386%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	22%	-15%	-8%	-2%	-7%	3%	7%	-9%	-1%
Earnings YoY growth	-	-217%	140%	-192%	-96%	-803%	85%	66%	-348%	9%
Equity YoY growth	-	-0%	-15%	-0%	-6%	4%	3%	-1%	-7%	-4%
FCF YoY growth	-	174%	4%	-39%	62%	-2%	41%	-49%	-64%	-17%