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NetSol Technologies

Nasdaq:NTWK
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NTWK
Nasdaq
$50M
Market Cap
  1. Home
  2. US
  3. Software
Company description

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. The last earnings update was 6 days ago. More info.


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  • NetSol Technologies has significant price volatility in the past 3 months.
NTWK Share Price and Events
7 Day Returns
-25.3%
NasdaqCM:NTWK
2.5%
US Software
0.7%
US Market
1 Year Returns
-34.9%
NasdaqCM:NTWK
32.7%
US Software
13.7%
US Market
NTWK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NetSol Technologies (NTWK) -25.3% -19.6% -24.6% -34.9% -24.6% -0.9%
US Software 2.5% 9.9% 4.7% 32.7% 116.8% 154.3%
US Market 0.7% 4.7% 6.1% 13.7% 39.2% 44.5%
1 Year Return vs Industry and Market
  • NTWK underperformed the Software industry which returned 32.7% over the past year.
  • NTWK underperformed the Market in United States of America which returned 13.7% over the past year.
Price Volatility
NTWK
Industry
5yr Volatility vs Market

Value

 Is NetSol Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of NetSol Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for NetSol Technologies.

NasdaqCM:NTWK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:NTWK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.126 (1 + (1- 21%) (20.87%))
1.209
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.209 * 5.96%)
9.94%

Discounted Cash Flow Calculation for NasdaqCM:NTWK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NetSol Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqCM:NTWK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.94%)
2020 0.02 Analyst x1 0.02
2021 0.02 Analyst x1 0.02
2022 0.00 Est @ -83.13% 0.00
2023 0.00 Est @ -57.37% 0.00
2024 0.00 Est @ -39.34% 0.00
2025 0.00 Est @ -26.72% 0.00
2026 0.00 Est @ -17.88% 0.00
2027 0.00 Est @ -11.7% 0.00
2028 0.00 Est @ -7.37% 0.00
2029 0.00 Est @ -4.34% 0.00
Present value of next 10 years cash flows $0.00
NasdaqCM:NTWK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $0.00 × (1 + 2.73%) ÷ (9.94% – 2.73%)
$0.01
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $0.01 ÷ (1 + 9.94%)10
$0.00
NasdaqCM:NTWK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $0.00 + $0.00
$0.00
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $0.00 / 11.72
$0
NasdaqCM:NTWK Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.00
Current discount Discount to share price of $4.26
= -1 x ($4.26 - $0.00) / $0.00
-2278464.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of NetSol Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NetSol Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NetSol Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:NTWK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.50
NasdaqCM:NTWK Share Price ** NasdaqCM (2019-11-18) in USD $4.26
United States of America Software Industry PE Ratio Median Figure of 71 Publicly-Listed Software Companies 44.43x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of NetSol Technologies.

NasdaqCM:NTWK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:NTWK Share Price ÷ EPS (both in USD)

= 4.26 ÷ 0.50

8.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetSol Technologies is good value based on earnings compared to the US Software industry average.
  • NetSol Technologies is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does NetSol Technologies's expected growth come at a high price?
Raw Data
NasdaqCM:NTWK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
16.3%per year
United States of America Software Industry PEG Ratio Median Figure of 60 Publicly-Listed Software Companies 2.54x
United States of America Market PEG Ratio Median Figure of 2,038 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqCM:NTWK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.56x ÷ 16.3%

0.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetSol Technologies is good value based on expected growth next year.
Price based on value of assets
What value do investors place on NetSol Technologies's assets?
Raw Data
NasdaqCM:NTWK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $4.90
NasdaqCM:NTWK Share Price * NasdaqCM (2019-11-18) in USD $4.26
United States of America Software Industry PB Ratio Median Figure of 214 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,086 Publicly-Listed Companies 1.76x
NasdaqCM:NTWK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:NTWK Share Price ÷ Book Value per Share (both in USD)

= 4.26 ÷ 4.90

0.87x

* Primary Listing of NetSol Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • NetSol Technologies is good value based on assets compared to the US Software industry average.
X
Value checks
We assess NetSol Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. NetSol Technologies has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is NetSol Technologies expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NetSol Technologies expected to grow at an attractive rate?
  • NetSol Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NetSol Technologies's earnings growth is expected to exceed the United States of America market average.
  • NetSol Technologies's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:NTWK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:NTWK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 16.3%
NasdaqCM:NTWK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 9.5%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 14.7%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:NTWK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:NTWK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 77 16 8 1
2020-06-30 71 16 8 1
2019-11-18
NasdaqCM:NTWK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 65 6 6
2019-06-30 68 5 9
2019-03-31 67 13 6
2018-12-31 67 21 8
2018-09-30 65 20 6
2018-06-30 61 16 4
2018-03-31 59 5 0
2017-12-31 60 -2 -2
2017-09-30 61 -3 -5
2017-06-30 65 0 -5
2017-03-31 70 -1 0
2016-12-31 68 0 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NetSol Technologies's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
  • NetSol Technologies's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:NTWK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from NetSol Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:NTWK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 0.64 0.64 0.64 1.00
2020-06-30 0.64 0.64 0.64 1.00
2019-11-18
NasdaqCM:NTWK Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.50
2019-06-30 0.74
2019-03-31 0.54
2018-12-31 0.69
2018-09-30 0.50
2018-06-30 0.38
2018-03-31 0.00
2017-12-31 -0.19
2017-09-30 -0.45
2017-06-30 -0.46
2017-03-31 0.02
2016-12-31 0.04

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if NetSol Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NetSol Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NetSol Technologies has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NetSol Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NetSol Technologies's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NetSol Technologies has delivered over 20% year on year earnings growth in the past 5 years.
  • NetSol Technologies's 1-year earnings growth is less than its 5-year average (2.7% vs 67.9%)
  • NetSol Technologies's earnings growth has not exceeded the US Software industry average in the past year (2.7% vs 25.8%).
Earnings and Revenue History
NetSol Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from NetSol Technologies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:NTWK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 65.00 5.79 24.30 2.33
2019-06-30 67.82 8.58 24.75 1.97
2019-03-31 67.15 6.26 24.72 1.54
2018-12-31 67.06 7.86 25.04 1.22
2018-09-30 64.51 5.64 24.94 0.99
2018-06-30 60.93 4.31 24.34 0.85
2018-03-31 58.79 0.01 24.99 0.68
2017-12-31 59.70 -2.16 25.75 0.58
2017-09-30 61.11 -4.96 26.44 0.49
2017-06-30 65.37 -4.98 27.90 0.39
2017-03-31 69.96 0.23 27.18 0.41
2016-12-31 67.99 0.38 26.11 0.44
2016-09-30 68.32 3.43 24.85 0.47
2016-06-30 64.55 3.40 22.79 0.49
2016-03-31 60.87 0.61 20.29 0.45
2015-12-31 57.97 -1.88 20.29 0.40
2015-09-30 54.13 -4.12 20.40 0.36
2015-06-30 51.05 -5.55 20.30 0.31
2015-03-31 45.20 -12.17 22.70 0.30
2014-12-31 41.49 -13.37 21.56 0.28
2014-09-30 37.69 -13.46 19.96 0.26
2014-06-30 36.38 -12.51 19.62 0.25
2014-03-31 41.81 -1.74 17.16 0.34
2013-12-31 44.44 4.15 15.71 0.27
2013-09-30 47.70 7.82 15.34 0.22
2013-06-30 49.85 9.65 14.38 0.16
2013-03-31 49.21 8.11 14.19
2012-12-31 47.82 6.74 14.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NetSol Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NetSol Technologies used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • NetSol Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NetSol Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NetSol Technologies has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NetSol Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NetSol Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NetSol Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NetSol Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NetSol Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 7.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from NetSol Technologies Company Filings, last reported 1 month ago.

NasdaqCM:NTWK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 66.07 6.80 17.62
2019-06-30 66.48 6.61 17.37
2019-03-31 69.70 7.71 17.01
2018-12-31 67.91 7.29 20.32
2018-09-30 69.45 8.11 20.44
2018-06-30 76.94 8.28 22.09
2018-03-31 78.81 8.78 12.71
2017-12-31 76.42 9.83 10.00
2017-09-30 77.29 9.68 8.55
2017-06-30 78.19 9.86 14.17
2017-03-31 80.55 5.19 8.45
2016-12-31 77.49 3.91 9.51
2016-09-30 78.22 3.90 11.16
2016-06-30 77.64 3.95 11.56
2016-03-31 74.95 4.08 11.88
2015-12-31 73.65 3.31 13.99
2015-09-30 72.31 3.79 10.08
2015-06-30 73.64 3.55 14.17
2015-03-31 74.56 2.71 10.89
2014-12-31 74.03 3.42 13.49
2014-09-30 74.77 3.62 10.38
2014-06-30 78.76 6.31 11.46
2014-03-31 86.79 6.56 12.38
2013-12-31 84.42 6.26 11.58
2013-09-30 86.49 6.29 6.76
2013-06-30 89.42 6.08 7.87
2013-03-31 85.43 6.64 7.71
2012-12-31 80.06 9.18 9.58
  • NetSol Technologies's level of debt (10.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (4.8% vs 10.3% today).
  • Debt is well covered by operating cash flow (81.5%, greater than 20% of total debt).
  • NetSol Technologies earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess NetSol Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NetSol Technologies has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is NetSol Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from NetSol Technologies dividends.
If you bought $2,000 of NetSol Technologies shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate NetSol Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NetSol Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:NTWK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:NTWK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30
2020-06-30
2019-11-18

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as NetSol Technologies has not reported any payouts.
  • Unable to verify if NetSol Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NetSol Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NetSol Technologies has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess NetSol Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can NetSol Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NetSol Technologies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of NetSol Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Najeeb Ghauri
COMPENSATION $1,329,086
AGE 65
TENURE AS CEO 13.1 years
CEO Bio

Mr. Najeeb Ullah Ghauri founded NetSol Technologies, Inc. and has been its Chief Executive since October 2006. Mr. Ghauri served as the Head of NetSol Global Sales at NetSol Technologies, Inc. He served as the Chief Financial Officer of NetSol Technologies Inc. from July 9, 2002 to July 2005 and its Secretary since March 2002. Mr. Ghauri served as the Chief Executive Officer of NetSol Technologies Inc. from 1999 to 2001. His career spans over 22 years of academic, corporate and entrepreneurial accomplishments. His most dynamic, can do and versatile attributes led him to successfully manage senior divisional roles in fortune 500 companies such as Unilever and Atlantic Richfield Corporation, or Arco for short, prior to embarking on a most successful and challenging venture of his career. He was part of the marketing team of Atlantic Richfield Company from 1987 to 1997. In early 1997, he decided to explore a new direction and business venture, that would eventually create the most visible, successful and accomplished IT company in Pakistan. He staged a small holding company namely Mirage Holdings, Inc. He has been the Chairman of NetSol Technologies Inc. since 2003. Mr. Ghauri served as Vice Chairman of NetSol Technologies Inc. He has been a Director of NetSol Technologies Inc. since 1997. He is a founding member of USPBC (the US Pakistan American Business Council). He serves as a Non-Executive Director of Netsol Technologies Limited. He is a founding board member of the Pakistanl Human Development Fund. He is a board member at the newly created U.S. Pakistan Business Council in Washington, D.C. (a U.S. Chamber of Commerce Body). He serves as a Director of M4 International, Inc. Mr. Ghauri has been very actively engaged in some major philanthropic activities including involvement in PHDF (Pakistan Human Development Fund, Al Shifa foundation, DIL (Development in Literacy). He strongly believes in investing in Pakistan for education, improving medical services and poverty alleviation. He is also an active founding member of a prestigious USPBC (US Pak Bus Council), a body of US Chamber of Commerce to promote the US and Pakistan business. In 1982, Mr. Ghauri was a nominee for the Ernst & Young 'Entrepreneur of the Year' award in California. Mr. Ghauri is very active in various educational non-governmental organizations (NGOs) worldwide. He received his Bachelor of Science degree in Management/Economics from Eastern Illinois University in 1979 and an M.B.A. in Marketing Management from Drucker School of Management at Claremont College in California in 1982.

CEO Compensation
  • Najeeb's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Najeeb's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NetSol Technologies management team in years:

6.2
Average Tenure
58
Average Age
  • The average tenure for the NetSol Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Najeeb Ghauri

TITLE
Founder
COMPENSATION
$1M
AGE
65
TENURE
13.1 yrs

Naeem Ghauri

TITLE
Co-Founder
AGE
62

Roger Almond

TITLE
Chief Financial Officer
COMPENSATION
$307K
AGE
54
TENURE
6.2 yrs

Patti L. McGlasson

TITLE
Senior VP of Legal & Corporate Affairs
COMPENSATION
$292K
AGE
54
TENURE
15.8 yrs

Salim Ghauri

TITLE
Founder & Chief Executive Officer of NETSOL Technologies Ltd. Pakistan
AGE
63

Boo-Ali Siddiqui

TITLE
Chief Financial Officer & Company Secretary of Netsol Technologies Ltd
AGE
44
TENURE
6.2 yrs

Naheed Haq

TITLE
Head of Administration & Procurement

Matt Glover

TITLE
Investor Relations
TENURE
3.8 yrs

Farooq Ghauri

TITLE
Managing Director of Australia
TENURE
1.8 yrs

Hui Liang

TITLE
President of China
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the NetSol Technologies board of directors in years:

1.8
Average Tenure
69
Average Age
  • The average tenure for the NetSol Technologies board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mark Caton

TITLE
Independent Director
COMPENSATION
$118K
AGE
70
TENURE
12.8 yrs

Naeem Ghauri

TITLE
Co-Founder
AGE
62
TENURE
20.8 yrs

Shahid Burki

TITLE
Independent Director
COMPENSATION
$122K
AGE
81
TENURE
16.8 yrs

Henry Tolentino

TITLE
Independent Director
COMPENSATION
$95K
AGE
70
TENURE
1.4 yrs

Eugen Beckert

TITLE
Member of Advisory Board
COMPENSATION
$114K
AGE
73
TENURE
0.8 yrs

Georg Bauer

TITLE
Member of Advisory Board
AGE
68
TENURE
2.2 yrs

Malea Farsai

TITLE
Corporate Counsel & Director
AGE
50
TENURE
1.4 yrs

Syed Kazmi

TITLE
Independent Director
AGE
66
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Jun 19 Buy Malea Farsai Individual 12. Jun 19 12. Jun 19 550 $5.85 $3,218
29. May 19 Buy Naeem Ghauri Individual 29. May 19 29. May 19 5,000 $5.41 $27,050
10. Apr 19 Buy Naeem Ghauri Individual 09. Apr 19 09. Apr 19 5,000 $7.01 $35,050
09. Apr 19 Buy Naeem Ghauri Individual 08. Apr 19 08. Apr 19 1,879 $6.70 $12,589
05. Apr 19 Buy Naeem Ghauri Individual 04. Apr 19 04. Apr 19 5,000 $6.12 $30,600
14. Jan 19 Buy Naeem Ghauri Individual 14. Jan 19 14. Jan 19 2,500 $7.60 $19,000
09. Jan 19 Buy Naeem Ghauri Individual 09. Jan 19 09. Jan 19 5,000 $6.99 $34,950
04. Jan 19 Sell Roger Almond Individual 02. Jan 19 02. Jan 19 -12,500 $6.26 $-78,250
28. Dec 18 Buy Naeem Ghauri Individual 27. Dec 18 27. Dec 18 5,000 $5.70 $28,500
27. Dec 18 Buy Naeem Ghauri Individual 26. Dec 18 26. Dec 18 625 $5.40 $3,375
X
Management checks
We assess NetSol Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NetSol Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

With EPS Growth And More, NetSol Technologies (NASDAQ:NTWK) Is Interesting

See our latest analysis for NetSol Technologies NetSol Technologies's Improving Profits In business, though not in life, profits are a key measure of success; and share prices tend to reflect earnings per share (EPS). … In the last year insider at NetSol Technologies were both selling and buying shares; but happily, as a group they spent US$116k more on stock, than they netted from selling it. … NetSol Technologies's earnings per share have taken off like a rocket aimed right at the moon.

Simply Wall St -

Does NetSol Technologies (NASDAQ:NTWK) Have A Healthy Balance Sheet?

NasdaqCM:NTWK Historical Debt, August 12th 2019 How Healthy Is NetSol Technologies's Balance Sheet? … While NetSol Technologies has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Over the last year, NetSol Technologies actually produced more free cash flow than EBIT.

Simply Wall St -

NetSol Technologies, Inc. (NASDAQ:NTWK) Has Attractive Fundamentals

Very undervalued with solid track record Over the past few years, NTWK has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. … Not only did NTWK outperformed its past performance, its growth also exceeded the Software industry expansion, which generated a 34% earnings growth. … Compared to the rest of the software industry, NTWK is also trading below its peers, relative to earnings generated.

Simply Wall St -

Should You Be Excited About NetSol Technologies, Inc.'s (NASDAQ:NTWK) 12% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for NetSol Technologies: 12% = US$6.3m ÷ US$70m (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does NetSol Technologies Have A Good Return On Equity? … NetSol Technologies's Debt And Its 12% ROE NetSol Technologies has a debt to equity ratio of 0.13, which is far from excessive.

Simply Wall St -

Do Institutions Own NetSol Technologies, Inc. (NASDAQ:NTWK) Shares?

As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.' With a market capitalization of US$69m, NetSol Technologies is a small cap stock, so it might not be well known by many institutional investors. … See our latest analysis for NetSol Technologies NasdaqCM:NTWK Ownership Summary, June 14th 2019 What Does The Institutional Ownership Tell Us About NetSol Technologies? … We can see that NetSol Technologies does have institutional investors; and they hold 25% of the stock.

Simply Wall St -

Should You Take Comfort From Insider Transactions At NetSol Technologies, Inc. (NASDAQ:NTWK)?

NasdaqCM:NTWK Recent Insider Trading, May 16th 2019 NetSol Technologies is not the only stock insiders are buying. … Insiders at NetSol Technologies Have Bought Stock Recently It's good to see that NetSol Technologies insiders have made notable investments in the company's shares. … When combined with notable insider ownership, these factors suggest NetSol Technologies insiders are well aligned, and that they may think the share price is too low.

Simply Wall St -

Is NetSol Technologies, Inc. (NASDAQ:NTWK) Potentially Underrated?

Today I've chosen to put the spotlight on NetSol Technologies, Inc. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on NetSol Technologies here

Simply Wall St -

Does NetSol Technologies's (NASDAQ:NTWK) Share Price Gain of 53% Match Its Business Performance?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … NetSol Technologies went from making a loss to reporting a profit, in the last year. … When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Simply Wall St -

Do Insiders Own Lots Of Shares In NetSol Technologies, Inc. (NASDAQ:NTWK)?

The big shareholder groups in NetSol Technologies, Inc. … NetSol Technologies is a smaller company with a market capitalization of US$95m, so it may still be flying under the radar of many institutional investors. … institutional investors have bought into the company.

Simply Wall St -

Are NetSol Technologies, Inc.'s (NASDAQ:NTWK) Interest Costs Too High?

(NASDAQ:NTWK) with its market cap of US$81m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Company Info

Description

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The company offers NetSol Financial Suite (NFS), an end-to-end solution covering leasing and finance cycle for the asset finance industry; and NFS Ascent platform, a lease accounting and contract processing engine. Its NFS includes Point of Sale, a front office processing system for the financial sector; Credit Application Processing System that handles incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System that enables users to manage and maintain a contract; Wholesale Finance System (WFS) to automate and manage the floor plan/bailment activities; and Dealer Auditor Access System, a Web-based solution used with WFS. The company’s NFS Ascent comprises LeasePak, which handles various aspects of the lease or loan lifecycle; and LeasePak software-as-a-service to small and mid-sized leasing and finance companies. In addition, it offers LeaseSoft, a full lifecycle lease and finance system for funder market; and LoanSoft for consumer loan market. Further, the company provides NFS Digital that enables a sales force for the finance and leasing company to access channels, such as point of sale, field investigation, and auditing. Its NFS Digital includes mAccount, a self-service mobile solution; mPOS application, a Web and mobile enabled platform; mDealer, a mobile platform; mAuditor, which schedules visits, records audit exceptions, and tracks assets; and Mobile Field Investigator that permits applicants for detail verification. The company was founded in 1997 and is headquartered in Calabasas, California.

Details
Name: NetSol Technologies, Inc.
NTWK
Exchange: NasdaqCM
Founded: 1997
$49,946,821
11,724,606
Website: http://www.netsoltech.com
Address: NetSol Technologies, Inc.
23975 Park Sorrento,
Suite 250,
Calabasas,
California, 91302,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM NTWK Common Stock Nasdaq Capital Market US USD 24. Sep 1998
DB NS9B Common Stock Deutsche Boerse AG DE EUR 24. Sep 1998
Number of employees
Current staff
Staff numbers
1,360
NetSol Technologies employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 23:44
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/11/12
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.