A Business at a Glance
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Table of Contents PART I Item 1. Business We are an industry leader with four decades of experience in providing service assurance and cybersecurity solutions that are based on our pioneering deep packet inspection technology at scale, which is used by many Fortune 500 companies to protect their digital business services against disruption. Service providers and enterprises, including local, state and federal government agencies, rely on our solutions to achieve the visibility and protection necessary to optimize network performance, ensure the delivery of high-quality, mission-critical applications and services, gain timely insight into the end user experience and protect their networks from attack.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 861M | 823M | 829M | 915M | 856M | 831M |
| Net Income | 96M | -367M | -148M | 60M | 36M | 19M |
| EPS | $1.33 | $-5.12 | $-2.07 | $0.82 | $0.48 | $0.26 |
| Free Cash Flow | 275M | 212M | 52M | 146M | 286M | 202M |
| ROIC | 8.7% | -20.7% | -7.2% | 3.9% | 2.3% | 1.6% |
| Gross Margin | 79.2% | 78.3% | 77.4% | 75.6% | 75.0% | 73.3% |
| Debt/Equity | 0.00 | 0.00 | 0.05 | 0.05 | 0.17 | 0.17 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 110M | -368M | -150M | 78M | 49M | 37M |
| Operating Margin | 12.8% | -44.7% | -18.1% | 8.5% | 5.7% | 4.5% |
| ROE | 5.8% | -21.3% | -7.5% | 2.9% | 1.8% | 1.0% |
| Shares Outstanding | 72M | 72M | 71M | 73M | 75M | 74M |
NETSCOUT SYSTEMS INC passes 2 of 9 quality checks, indicating weak fundamentals.
NETSCOUT SYSTEMS INC trades at 24.4x trailing earnings, compared to its 15-year median P/E of 34.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 8.5x vs a median of 12.5x. The company's 5-year average gross margin is 75.9%. Total shareholder yield (buybacks) is 1.3%. At current prices, the estimated annualized return to fair value is -2.4%.
NETSCOUT SYSTEMS INC (NTCT) has a current P/E ratio of 24.4, compared to its historical median P/E of 34.5. The stock is currently considered Fair based on its historical valuation range.
NETSCOUT SYSTEMS INC (NTCT) has a 5-year average return on invested capital (ROIC) of -4.0%. This is below average and may indicate limited pricing power.
NETSCOUT SYSTEMS INC (NTCT) has a market capitalization of $2.3B. It is classified as a mid-cap stock.
NETSCOUT SYSTEMS INC (NTCT) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.35%.
Based on historical P/E analysis, NETSCOUT SYSTEMS INC (NTCT) appears fair. The current P/E of 24.4 is 29% below its historical median of 34.5. The estimated fair value CAGR (P/E method) is 51.9%.
NETSCOUT SYSTEMS INC (NTCT) operates in the Services-Computer Integrated Systems Design industry, within the Technology sector.
NETSCOUT SYSTEMS INC (NTCT) reported annual revenue of $823 million in its most recent fiscal year, based on SEC EDGAR filings.
NETSCOUT SYSTEMS INC (NTCT) has a net profit margin of -44.6%. The company is currently unprofitable.
NETSCOUT SYSTEMS INC (NTCT) generated $212 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NETSCOUT SYSTEMS INC (NTCT) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
NETSCOUT SYSTEMS INC (NTCT) reported earnings per share (EPS) of $-5.12 in its most recent fiscal year.
NETSCOUT SYSTEMS INC (NTCT) has a return on equity (ROE) of -21.3%. A negative ROE may indicate losses or negative equity.
NETSCOUT SYSTEMS INC (NTCT) has a 5-year average gross margin of 75.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for NETSCOUT SYSTEMS INC (NTCT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NETSCOUT SYSTEMS INC (NTCT) has a book value per share of $21.77, based on its most recent annual SEC filing.