ITEM 1 - BUSINESS NETSOL Technologies’ solutions and services enable original equipment manufacturers (OEMs), dealerships and financial institutions to sell, finance and lease assets. The company serves customers across over 30 countries. NETSOL has been at the cutting edge of technology, pioneering innovations with its asset finance solutions and leveraging advanced AI and cloud services to meet the complex needs of the global market. Renowned for its deep industry expertise, customer-centric approach and commitment to excellence, NETSOL fosters strong partnerships with its clients, ensuring their success in an ever-evolving landscape. With a rich history of innovation, ethical business practices and a focus on sustainability, NETSOL is dedicated to empowering businesses worldwide, securing its position as the trusted partner for leading firms around the globe.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 70M | 66M | 61M | 52M | 57M | 55M |
| Net Income | 1.9M | 2.9M | 684K | -5.2M | -851K | 1.8M |
| EPS | $0.16 | $0.25 | $0.06 | $-0.46 | $-0.08 | $0.15 |
| Free Cash Flow | -1.0M | -936K | 2.4M | 370K | 451K | 13M |
| ROIC | 13.3% | 18.3% | 24.4% | -15.4% | -1.9% | 17.5% |
| Gross Margin | 48.8% | 49.3% | 47.7% | 32.3% | 41.5% | 48.0% |
| Debt/Equity | 0.48 | 0.44 | 0.36 | 0.35 | 0.39 | 0.43 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 4.2M | 3.5M | 3.5M | -8.8M | -1.1M | 2.7M |
| Operating Margin | 6.0% | 5.3% | 5.7% | -16.8% | -1.9% | 5.0% |
| ROE | 5.3% | 8.0% | 2.0% | -15.5% | -1.9% | 3.3% |
| Shares Outstanding | 12M | 12M | 11M | 11M | 11M | 12M |
NETSOL TECHNOLOGIES INC passes 3 of 9 quality checks, indicating weak fundamentals.
NETSOL TECHNOLOGIES INC trades at 21.1x trailing earnings, compared to its 15-year median P/E of 17.8x, suggesting it is currently Fair relative to its historical range. The company's 5-year average ROIC is 8.6% with a gross margin of 43.7%. Total shareholder yield (buybacks) is 3.8%. At current prices, the estimated annualized return to fair value is -16.4%.
NETSOL TECHNOLOGIES INC (NTWK) has a current P/E ratio of 21.1, compared to its historical median P/E of 17.8. The stock is currently considered Fair based on its historical valuation range.
NETSOL TECHNOLOGIES INC (NTWK) has a 5-year average return on invested capital (ROIC) of 8.6%. This is below average and may indicate limited pricing power.
NETSOL TECHNOLOGIES INC (NTWK) has a market capitalization of $40M. It is classified as a small-cap stock.
NETSOL TECHNOLOGIES INC (NTWK) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 3.78%.
Based on historical P/E analysis, NETSOL TECHNOLOGIES INC (NTWK) appears fair. The current P/E of 21.1 is 18% above its historical median of 17.8. The estimated fair value CAGR (P/E method) is -22.9%.
NETSOL TECHNOLOGIES INC (NTWK) operates in the Services-Prepackaged Software industry, within the Technology sector.
NETSOL TECHNOLOGIES INC (NTWK) reported annual revenue of $66 million in its most recent fiscal year, based on SEC EDGAR filings.
NETSOL TECHNOLOGIES INC (NTWK) has a net profit margin of 4.4%. This is a modest margin.
NETSOL TECHNOLOGIES INC (NTWK) generated $-936 thousand in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
NETSOL TECHNOLOGIES INC (NTWK) has a debt-to-equity ratio of 0.44. This indicates a conservatively financed balance sheet.
NETSOL TECHNOLOGIES INC (NTWK) reported earnings per share (EPS) of $0.25 in its most recent fiscal year.
NETSOL TECHNOLOGIES INC (NTWK) has a return on equity (ROE) of 8.0%. This indicates moderate shareholder returns.
NETSOL TECHNOLOGIES INC (NTWK) has a 5-year average gross margin of 43.7%. This indicates decent pricing power.
The Ledger Terminal provides 15 years of financial data for NETSOL TECHNOLOGIES INC (NTWK), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NETSOL TECHNOLOGIES INC (NTWK) has a book value per share of $3.24, based on its most recent annual SEC filing.