A Business at a Glance
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NETSCOUT SYSTEMS INC
NTCT
$2.9B
Mkt Cap
$40.00
+1.39%
NETSCOUT SYSTEMS INC (NTCT) has a current P/E ratio of 30.1, 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 -2.6%. This is below average and may indicate limited pricing power.
NETSCOUT SYSTEMS INC (NTCT) has a market capitalization of $2.9B. 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 2.07%.
Based on historical P/E analysis, NETSCOUT SYSTEMS INC (NTCT) appears fair. The current P/E of 30.1 is 13% below its historical median of 34.5. The estimated fair value CAGR (P/E method) is 53.0%.
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 $859 million in its most recent fiscal year, based on SEC EDGAR filings.
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 | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 859M | 859M | 823M | 829M | 915M | 856M |
| Net Income | 96M | 96M | -367M | -148M | 60M | 36M |
| EPS | $1.30 | $1.30 | $-5.12 | $-2.07 | $0.82 | $0.48 |
| Free Cash Flow | 285M | 285M | 212M | 52M | 146M | 286M |
| ROIC | 8.3% | 8.6% | -20.7% | -7.2% | 3.9% | 2.3% |
| Gross Margin | 79.4% | 79.4% | 78.3% | 77.4% | 75.6% | 75.0% |
| Debt/Equity | 0.00 | 0.43 | 0.00 | 0.05 | 0.05 | 0.17 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 110M | 110M | -368M | -150M | 78M | 49M |
| Operating Margin | 12.8% | 12.8% | -44.7% | -18.1% | 8.5% | 5.7% |
| ROE | 5.8% | 6.0% | -21.3% | -7.5% | 2.9% | 1.8% |
| Shares Outstanding | 73M | 73M | 72M | 71M | 73M | 75M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 454M | 955M | 1.2B | 987M | 910M | 892M | 831M | 856M | 915M | 829M | 823M | 859M | 859M |
| Gross Margin | 79.2% | 65.6% | 70.2% | 72.4% | 72.1% | 72.8% | 73.3% | 75.0% | 75.6% | 77.4% | 78.3% | 79.4% | 79.4% |
| R&D | 75M | 209M | 233M | 215M | 204M | 188M | 179M | 171M | 176M | 161M | 153M | 159M | 159M |
| SG&A | 47M | 118M | 118M | 109M | 94M | 100M | 89M | 98M | 104M | 96M | 97M | 103M | 103M |
| EBIT | 97M | -26M | 62M | -4.1M | -72M | 18M | 37M | 49M | 78M | -150M | -368M | 110M | 110M |
| Op. Margin | 21.3% | -2.7% | 5.3% | -0.4% | -7.9% | 2.0% | 4.5% | 5.7% | 8.5% | -18.1% | -44.7% | 12.8% | 12.8% |
| Net Income | 61M | -28M | 33M | 80M | -73M | -2.8M | 19M | 36M | 60M | -148M | -367M | 96M | 96M |
| Net Margin | 13.5% | -3.0% | 2.9% | 8.1% | -8.1% | -0.3% | 2.3% | 4.2% | 6.5% | -17.8% | -44.6% | 11.1% | 11.1% |
| Non-Recurring | -300K | 334K | 4.0M | 5.2M | 45M | 2.7M | 62K | 0 | 1.8M | 221M | 447M | 883K | 883K |
| Returns on Capital | |||||||||||||
| ROIC | 23.0% | -1.8% | 1.5% | 3.0% | -2.8% | 0.5% | 1.6% | 2.3% | 3.9% | -7.2% | -20.7% | 8.6% | 8.3% |
| ROE | 14.5% | -2.0% | 1.4% | 3.5% | -3.5% | -0.1% | 1.0% | 1.8% | 2.9% | -7.5% | -21.3% | 6.0% | 5.8% |
| ROA | 9.6% | -1.3% | 0.9% | 2.3% | -2.2% | -0.1% | 0.6% | 1.1% | 2.0% | -5.5% | -15.3% | 4.2% | 4.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 107M | 97M | 227M | 222M | 150M | 225M | 214M | 296M | 157M | 59M | 218M | 295M | 295M |
| Free Cash Flow | 94M | 72M | 197M | 207M | 126M | 205M | 202M | 286M | 146M | 52M | 212M | 285M | 285M |
| Owner Earnings | 71M | -71M | 27M | 22M | -44M | 58M | 56M | 144M | 8.7M | -87M | 89M | 178M | 178M |
| CapEx | 13M | 25M | 30M | 16M | 23M | 20M | 12M | 10M | 10M | 6.4M | 5.4M | 9.1M | 9.1M |
| Maint. CapEx | 20M | 140M | 161M | 154M | 138M | 116M | 106M | 96M | 86M | 75M | 64M | 57M | 57M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 20M | 140M | 161M | 154M | 138M | 116M | 106M | 96M | 86M | 75M | 64M | 57M | 57M |
| CapEx/OCF | 12.0% | 26.0% | 13.1% | 7.2% | 15.6% | 8.9% | 5.6% | 3.5% | 6.7% | 10.8% | 2.5% | N/A | 3.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 52M | 303M | 80M | 501M | 14M | 175M | 3.3M | 36M | 150M | 50M | 25M | 61M | 61M |
| Buyback Yield | 1.3% | 17.7% | 2.3% | 22.1% | 0.7% | 11.3% | 0.2% | 1.5% | 7.3% | 3.2% | 1.7% | 0.0% | 2.1% |
| Stock-Based Comp | 17M | 28M | 39M | 47M | 56M | 51M | 52M | 56M | 62M | 71M | 65M | 60M | 60M |
| Debt Repayment | 0 | 0 | 0 | 0 | 50M | 100M | 100M | 350M | 250M | 0 | 175M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -206M | -39M | -143M | 152M | 64M | 64M | -126M | -353M | -319M | -313M | -481M | N/A | -586M |
| Cash & Equiv. | 105M | 211M | 305M | 370M | 410M | 338M | 467M | 636M | 387M | 390M | 457M | 586M | 586M |
| Long-Term Debt | 0 | 300M | 300M | 600M | 550M | 450M | 350M | 350M | 100M | 100M | 0 | N/A | N/A |
| Debt/Equity | 0.00 | 0.12 | 0.12 | 0.29 | 0.27 | 0.23 | 0.17 | 0.17 | 0.05 | 0.05 | 0.00 | 0.43 | 0.00 |
| Interest Coverage | 125.2 | -4.0 | 6.8 | -0.3 | -2.7 | 0.9 | 3.4 | 6.0 | 7.6 | -17.3 | -51.3 | 64.4 | 64.4 |
| Equity | 436M | 2.4B | 2.4B | 2.1B | 2.1B | 1.9B | 2.0B | 2.1B | 2.0B | 1.9B | 1.6B | 1.6B | 1.6B |
| Total Assets | 669M | 3.6B | 3.6B | 3.4B | 3.3B | 3.1B | 3.1B | 3.2B | 2.8B | 2.6B | 2.2B | 2.4B | 2.4B |
| Total Liabilities | 233M | 1.1B | 1.2B | 1.3B | 1.2B | 1.2B | 1.1B | 1.1B | 791M | 703M | 626M | 705M | 705M |
| Intangibles | 50M | 1.1B | 931M | 831M | 669M | 582M | 512M | 433M | 367M | 309M | 259M | 214M | 214M |
| Retained Earnings | 312M | 283M | 317M | 396M | 358M | 355M | 375M | 411M | 470M | 322M | -44M | 51M | 51M |
| Working Capital | 150M | 283M | 394M | 339M | 421M | 261M | 311M | 446M | 164M | 277M | 305M | 398M | 398M |
| Current Assets | 337M | 740M | 854M | 752M | 801M | 660M | 722M | 922M | 617M | 672M | 713M | 868M | 868M |
| Current Liabilities | 188M | 457M | 460M | 413M | 380M | 399M | 411M | 476M | 454M | 395M | 408M | 470M | 470M |
| Per Share Data | |||||||||||||
| EPS | 1.47 | -0.35 | 0.36 | 0.90 | -0.93 | -0.04 | 0.26 | 0.48 | 0.82 | -2.07 | -5.12 | 1.30 | 1.30 |
| Owner EPS | 1.70 | -0.88 | 0.29 | 0.24 | -0.56 | 0.84 | 0.76 | 1.93 | 0.12 | -1.22 | 1.24 | 2.42 | 2.42 |
| Book Value | 10.47 | 30.15 | 26.34 | 23.33 | 26.20 | 28.15 | 26.95 | 27.57 | 27.90 | 26.51 | 21.77 | 22.44 | 22.44 |
| Cash Flow/Share | 2.57 | 1.20 | 2.45 | 2.51 | 1.90 | 3.27 | 2.87 | 3.96 | 2.15 | 0.82 | 3.04 | 4.01 | 2.07 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 41.6M | 81.1M | 92.5M | 88.7M | 78.8M | 68.8M | 74.4M | 74.7M | 72.7M | 71.4M | 71.7M | 73.5M | 73.5M |
| Valuation | |||||||||||||
| P/E Ratio | 29.8 | N/A | 105.0 | 28.4 | N/A | N/A | 111.2 | 67.4 | 34.5 | N/A | N/A | N/A | 30.8 |
| P/FCF | 19.4 | 24.4 | 17.7 | 11.0 | 17.2 | 7.5 | 10.7 | 8.5 | 14.1 | 29.7 | 7.2 | N/A | 10.3 |
| EV/EBIT | 40.4 | N/A | 54.0 | N/A | N/A | 91.3 | 54.5 | 42.5 | 22.4 | N/A | N/A | N/A | 21.4 |
| Price/Book | 9.4 | 0.7 | 1.4 | 1.1 | 1.1 | 0.8 | 1.1 | 1.2 | 1.0 | 0.8 | 1.0 | N/A | 1.8 |
| Price/Sales | 8.3 | 2.9 | 2.3 | 2.9 | 2.3 | 1.9 | 2.3 | 2.6 | 2.6 | 2.2 | 1.8 | N/A | 3.4 |
| FCF Yield | 2.3% | 4.1% | 5.6% | 9.1% | 5.8% | 13.3% | 9.4% | 11.8% | 7.1% | 3.4% | 14.0% | N/A | 9.7% |
| Market Cap | 4.1B | 1.8B | 3.5B | 2.3B | 2.2B | 1.5B | 2.2B | 2.4B | 2.1B | 1.6B | 1.5B | 0 | 2.9B |
| Avg. Price | 39.97 | 34.28 | 28.88 | 31.98 | 26.64 | 24.94 | 25.72 | 29.41 | 32.73 | 25.58 | 20.88 | 0.00 | 40.00 |
| Year-End Price | 43.86 | 21.78 | 37.80 | 25.55 | 27.65 | 22.47 | 28.90 | 32.35 | 28.30 | 21.84 | 21.21 | 0.00 | 40.00 |
NETSCOUT SYSTEMS INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
NETSCOUT SYSTEMS INC trades at 30.1x 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 10.5x vs a median of 11.0x. The company's 5-year average gross margin is 77.1%. Total shareholder yield (buybacks) is 2.1%. At current prices, the estimated annualized return to fair value is -2.9%.
NETSCOUT SYSTEMS INC (NTCT) has a net profit margin of 11.1%. This is a healthy margin.
NETSCOUT SYSTEMS INC (NTCT) generated $285 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 0.43. This indicates a conservatively financed balance sheet.
NETSCOUT SYSTEMS INC (NTCT) reported earnings per share (EPS) of $1.30 in its most recent fiscal year.
NETSCOUT SYSTEMS INC (NTCT) has a return on equity (ROE) of 6.0%. This indicates moderate shareholder returns.
NETSCOUT SYSTEMS INC (NTCT) has a 5-year average gross margin of 77.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 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 $22.44, based on its most recent annual SEC filing.