(NTCT) NetScout Systems - NASDAQ
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 2.902m USD | Total Return: 77.2% in 12m
Avg Turnover: 23.1M
EPS Trend: 61.7%
Qual. Beats: 0
Rev. Trend: -15.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Shakeout, Supp Ema20, Rs Leader, Tailwind, Avwap Ph Week, Confidence
NetScout Systems Inc. (NTCT) specializes in service assurance, network performance management, and cybersecurity solutions for global enterprises and service providers. The company’s core technology centers on Deep Packet Inspection, which converts network traffic into actionable intelligence to prevent service disruptions and mitigate DDoS attacks under its Arbor brand.
Operating within the Communications Equipment sub-industry, NetScout utilizes a business model driven by both hardware-based packet flow systems and software-as-a-service (SaaS) analytics. The sector is currently characterized by high demand for visibility across hybrid-cloud environments and the increasing complexity of 5G network infrastructures. NetScout serves a diverse client base ranging from government agencies to mobile operators and financial institutions.
Investors may find it useful to review the quantitative performance metrics available on ValueRay to further evaluate this security. NetScout remains headquartered in Westford, Massachusetts, and continues to expand its virtualized monitoring footprint through its vSTREAM and Omnis Cyber Investigator platforms.
- Carrier 5G infrastructure spending cycles dictate core service assurance revenue growth
- Arbor brand cybersecurity demand increases amid rising global DDoS attack frequency
- Enterprise digital transformation initiatives drive adoption of nGenius network monitoring software
- Transition to recurring subscription models impacts short-term revenue recognition and margins
- Consolidation within the telecommunications sector reduces the total addressable customer base
| Net Income: 95.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 2.41 > 1.0 |
| NWC/Revenue: 45.50% < 20% (prev 37.10%; Δ 8.39% < -1%) |
| CFO/TA 0.13 > 3% & CFO 294.5m > Net Income 95.5m |
| Net Debt (-628.4m) to EBITDA (174.8m): -3.59 < 3 |
| Current Ratio: 1.83 > 1.5 & < 3 |
| Outstanding Shares: last quarter (71.7m) vs 12m ago -1.16% < -2% |
| Gross Margin: 78.11% > 18% (prev 78.27%; Δ -0.17% > 0.5%) |
| Asset Turnover: 37.85% > 50% (prev 37.62%; Δ 0.23% > 0%) |
| Interest Coverage Ratio: 67.81 > 6 (EBIT TTM 115.6m / Interest Expense TTM 1.71m) |
| A: 0.17 (Total Current Assets 861.2m - Total Current Liabilities 470.1m) / Total Assets 2.35b |
| B: 0.02 (Retained Earnings 51.1m / Total Assets 2.35b) |
| C: 0.05 (EBIT TTM 115.6m / Avg Total Assets 2.27b) |
| D: 2.34 (Book Value of Equity 1.65b / Total Liabilities 705.3m) |
| Altman-Z'' = 3.96 = AA |
| DSRI: 0.89 (Receivables 151.5m/163.7m, Revenue 859.5m/822.7m) |
| GMI: 1.00 (GM 78.27% / 78.11%) |
| AQI: 0.94 (AQ_t 0.61 / AQ_t-1 0.65) |
| SGI: 1.04 (Revenue 859.5m / 822.7m) |
| TATA: -0.08 (NI 95.5m - CFO 294.5m) / TA 2.35b) |
| Beneish M = -3.13 (Cap -4..+1) = AA |
As of June 12, 2026, the stock is trading at USD 42.09 with a total of 519,989 shares traded.
Over the past week, the price has changed by -0.26%,
over one month by +3.49%,
over three months by +38.77% and
over the past year by +77.15%.
NetScout Systems has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold NTCT.
- StrongBuy: 0
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 41.7 | -0.9% |
P/E Trailing = 31.2231
P/E Forward = 14.881
P/S = 3.3764
P/B = 1.76
P/EG = 1.6405
Revenue TTM = 859.5m USD
EBIT TTM = 115.6m USD
EBITDA TTM = 174.8m USD
Long Term Debt = 29.7m USD (estimated: total debt 39.6m - short term 9.87m)
Short Term Debt = 9.87m USD (from shortTermDebt, last quarter)
Debt = 39.6m USD (from shortLongTermDebtTotal, last quarter) (leases 39.6m already included)
Net Debt = -628.4m USD (calculated: Debt 39.6m - CCE 668.0m)
Enterprise Value = 2.27b USD (2.90b + Debt 39.6m - CCE 668.0m)
Interest Coverage Ratio = 67.81 (Ebit TTM 115.6m / Interest Expense TTM 1.71m)
EV/FCF = 7.97x (Enterprise Value 2.27b / FCF TTM 285.4m)
FCF Yield = 12.55% (FCF TTM 285.4m / Enterprise Value 2.27b)
FCF Margin = 33.21% (FCF TTM 285.4m / Revenue TTM 859.5m)
Net Margin = 11.11% (Net Income TTM 95.5m / Revenue TTM 859.5m)
Gross Margin = 78.11% ((Revenue TTM 859.5m - Cost of Revenue TTM 188.2m) / Revenue TTM)
Gross Margin QoQ = 72.86% (prev 81.64%)
Tobins Q-Ratio = 0.97 (Enterprise Value 2.27b / Total Assets 2.35b)
Interest Expense / Debt = 4.31% (Interest Expense 1.71m / Debt 39.6m)
Taxrate = 19.39% (23.0m / 118.5m)
NOPAT = 93.2m (EBIT 115.6m * (1 - 19.39%))
Current Ratio = 1.83 (Total Current Assets 861.2m / Total Current Liabilities 470.1m)
Debt / Equity = 0.02 (Debt 39.6m / totalStockholderEquity, last quarter 1.65b)
Debt / EBITDA = -3.59 (Net Debt -628.4m / EBITDA 174.8m)
Debt / FCF = -2.20 (Net Debt -628.4m / FCF TTM 285.4m)
Total Stockholder Equity = 1.60b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.21% (Net Income 95.5m / Total Assets 2.35b)
RoE = 5.96% (Net Income TTM 95.5m / Total Stockholder Equity 1.60b)
RoCE = 7.08% (EBIT 115.6m / Capital Employed (Equity 1.60b + L.T.Debt 29.7m))
RoIC = 5.03% (NOPAT 93.2m / Invested Capital 1.85b)
WACC = 10.15% (E(2.90b)/V(2.94b) * Re(10.24%) + D(39.6m)/V(2.94b) * Rd(4.31%) * (1-Tc(0.19)))
Discount Rate = 10.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.86 | Cagr: 0.41%
[DCF] Terminal Value 72.38% ; FCFF base≈256.2m ; Y1≈293.6m ; Y5≈432.2m
[DCF] Fair Price = 77.81 (EV 4.93b - Net Debt -628.4m = Equity 5.56b / Shares 71.5m; r=10.15% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 61.74 | EPS CAGR: 4.64% | SUE: 0.66 | # QB: 0
Revenue Correlation: -15.50 | Revenue CAGR: -0.75% | SUE: 0.33 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.39 | Chg30d=+8.33% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.71 | Chg30d=+24.56% | Revisions=+20% | Analysts=2
EPS current Year (2027-03-31): EPS=2.74 | Chg30d=+8.73% | Revisions=+20% | GrowthEPS=+10.5% | GrowthRev=+5.1%
EPS next Year (2028-03-31): EPS=2.79 | Chg30d=+7.43% | Revisions=+33% | GrowthEPS=+1.9% | GrowthRev=+2.0%
[Analyst] Revisions Ratio: +33%