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NetScout Systems

Nasdaq:NTCT
Snowflake Description

Mediocre balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NTCT
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

NetScout Systems, Inc. provides service assurance, security, and business analytics for digital business services against disruptions in availability, performance, and security. The last earnings update was 10 days ago. More info.


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NTCT Share Price and Events
7 Day Returns
2.3%
NasdaqGS:NTCT
4.7%
US Communications
0.9%
US Market
1 Year Returns
-8.5%
NasdaqGS:NTCT
1.1%
US Communications
10.5%
US Market
NTCT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NetScout Systems (NTCT) 2.3% 14.8% 14.8% -8.5% -20.1% -34.5%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • NTCT underperformed the Communications industry which returned 1.1% over the past year.
  • NTCT underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
NTCT
Industry
5yr Volatility vs Market

Value

 Is NetScout Systems 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 NetScout Systems 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 NetScout Systems.

NasdaqGS:NTCT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
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 NasdaqGS:NTCT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (27.98%))
1.255
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.255 * 5.96%)
10.21%

Discounted Cash Flow Calculation for NasdaqGS:NTCT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for NetScout Systems 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.

NasdaqGS:NTCT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.21%)
2020 141.20 Analyst x3 128.12
2021 164.30 Analyst x3 135.26
2022 183.80 Analyst x2 137.30
2023 198.57 Est @ 8.04% 134.59
2024 211.37 Est @ 6.45% 129.99
2025 222.64 Est @ 5.33% 124.23
2026 232.78 Est @ 4.55% 117.85
2027 242.10 Est @ 4% 111.21
2028 250.87 Est @ 3.62% 104.56
2029 259.28 Est @ 3.35% 98.06
Present value of next 10 years cash flows $1,221.00
NasdaqGS:NTCT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $259.28 × (1 + 2.73%) ÷ (10.21% – 2.73%)
$3,559.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,559.87 ÷ (1 + 10.21%)10
$1,346.27
NasdaqGS:NTCT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,221.00 + $1,346.27
$2,567.27
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,567.27 / 74.84
$34.3
NasdaqGS:NTCT Discount to Share Price
Calculation Result
Value per share (USD) From above. $34.30
Current discount Discount to share price of $25.25
= -1 x ($25.25 - $34.30) / $34.30
26.4%

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

Current Discount
Amount off the current price NetScout Systems is available for.
Intrinsic value
26%
Share price is $25.25 vs Future cash flow value of $34.3
Current Discount Checks
For NetScout Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NetScout Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NetScout Systems's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 NetScout Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NetScout Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NTCT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-0.40
NasdaqGS:NTCT Share Price ** NasdaqGS (2019-11-08) in USD $25.25
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

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

** Primary Listing of NetScout Systems.

NasdaqGS:NTCT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NTCT Share Price ÷ EPS (both in USD)

= 25.25 ÷ -0.40

-62.38x

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

  • NetScout Systems is loss making, we can't compare its value to the US Communications industry average.
  • NetScout Systems is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does NetScout Systems's expected growth come at a high price?
Raw Data
NasdaqGS:NTCT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -62.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
105.2%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for NetScout Systems, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on NetScout Systems's assets?
Raw Data
NasdaqGS:NTCT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $25.93
NasdaqGS:NTCT Share Price * NasdaqGS (2019-11-08) in USD $25.25
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:NTCT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NTCT Share Price ÷ Book Value per Share (both in USD)

= 25.25 ÷ 25.93

0.97x

* Primary Listing of NetScout Systems.

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

  • NetScout Systems is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess NetScout Systems'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 Communications 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 Communications industry average (and greater than 0)? (1 check)
  5. NetScout Systems has a total score of 2/6, 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 NetScout Systems expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

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
105.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NetScout Systems expected to grow at an attractive rate?
  • NetScout Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NetScout Systems's earnings growth is expected to exceed the United States of America market average.
  • NetScout Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NTCT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NTCT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 105.2%
NasdaqGS:NTCT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 2.5%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*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
NasdaqGS:NTCT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NTCT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 946 205 45 2
2021-03-31 921 191 23 5
2020-03-31 902 164 6 5
2019-11-10
NasdaqGS:NTCT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 883 166 -31
2019-06-30 891 174 -40
2019-03-31 910 150 -73
2018-12-31 910 143 -76
2018-09-30 933 183 18
2018-06-30 966 195 42
2018-03-31 987 222 80
2017-12-31 1,070 245 85
2017-09-30 1,104 247 17
2017-06-30 1,119 242 18
2017-03-31 1,162 227 33
2016-12-31 1,129 170 7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NetScout Systems's earnings are expected to grow significantly at over 20% yearly.
  • NetScout Systems's revenue is expected to grow by 2.5% 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
NasdaqGS:NTCT 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 5 Analyst Estimates (S&P Global) See Below

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

NasdaqGS:NTCT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 0.29 0.38 0.19 2.00
2020-03-31 -0.02 0.06 -0.10 2.00
2019-11-10
NasdaqGS:NTCT Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -0.40
2019-06-30 -0.52
2019-03-31 -0.93
2018-12-31 -0.95
2018-09-30 0.21
2018-06-30 0.49
2018-03-31 0.91
2017-12-31 0.95
2017-09-30 0.19
2017-06-30 0.20
2017-03-31 0.36
2016-12-31 0.08

*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 NetScout Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess NetScout Systems'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.
NetScout Systems 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 NetScout Systems 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 NetScout Systems's growth in the last year to its industry (Communications).
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.
  • NetScout Systems does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare NetScout Systems's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare NetScout Systems's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
NetScout Systems'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 NetScout Systems Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NTCT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 883.46 -31.21 379.39 185.85
2019-06-30 890.83 -40.16 376.99 191.75
2019-03-31 909.92 -73.32 385.44 203.49
2018-12-31 910.14 -75.72 396.57 214.51
2018-09-30 933.08 17.57 400.06 208.87
2018-06-30 966.14 41.53 410.97 211.42
2018-03-31 986.79 79.81 422.02 214.92
2017-12-31 1,070.48 85.31 436.86 214.63
2017-09-30 1,103.73 16.87 448.31 228.43
2017-06-30 1,118.92 18.07 449.78 230.96
2017-03-31 1,162.11 33.29 447.07 232.70
2016-12-31 1,129.08 7.37 452.44 239.07
2016-09-30 1,134.57 -38.39 463.15 246.12
2016-06-30 1,123.63 -45.04 475.37 250.97
2016-03-31 955.42 -28.37 411.05 208.63
2015-12-31 788.92 -3.90 337.34 167.26
2015-09-30 604.07 38.24 264.58 121.00
2015-06-30 446.56 57.39 185.91 74.34
2015-03-31 453.67 61.19 183.74 75.24
2014-12-31 446.60 57.01 182.94 70.38
2014-09-30 434.20 56.68 173.51 69.86
2014-06-30 422.69 55.33 170.51 67.26
2014-03-31 396.65 49.11 160.23 70.45
2013-12-31 382.41 46.98 159.61 62.17
2013-09-30 363.55 40.83 158.81 59.17
2013-06-30 355.99 40.85 152.91 57.73
2013-03-31 350.55 40.61 150.61 55.85
2012-12-31 341.94 39.00 150.50 52.00

*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.
  • It is difficult to establish if NetScout Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if NetScout Systems has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if NetScout Systems improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess NetScout Systems'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 Communications 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.
NetScout Systems has a total score of 0/6, 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 NetScout Systems'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 NetScout Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NetScout Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NetScout Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of NetScout Systems'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 1.3x 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 NetScout Systems Company Filings, last reported 1 month ago.

NasdaqGS:NTCT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,940.26 450.00 300.19
2019-06-30 2,011.44 500.00 438.08
2019-03-31 2,065.43 550.00 485.98
2018-12-31 2,043.48 600.00 474.81
2018-09-30 2,036.60 600.00 452.12
2018-06-30 2,045.20 600.00 459.05
2018-03-31 2,068.78 600.00 447.76
2017-12-31 2,331.35 300.00 379.81
2017-09-30 2,232.36 300.00 307.09
2017-06-30 2,317.52 300.00 400.46
2017-03-31 2,436.25 300.00 442.77
2016-12-31 2,397.89 300.00 359.70
2016-09-30 2,373.95 300.00 294.72
2016-06-30 2,391.65 300.00 319.61
2016-03-31 2,443.38 300.00 338.71
2015-12-31 2,529.30 250.00 358.27
2015-09-30 2,573.62 250.00 318.68
2015-06-30 446.39 0.00 207.21
2015-03-31 435.75 0.00 206.29
2014-12-31 432.12 0.00 194.67
2014-09-30 412.62 0.00 169.77
2014-06-30 412.63 0.00 177.86
2014-03-31 409.16 0.00 177.31
2013-12-31 395.60 0.00 144.99
2013-09-30 382.79 0.00 137.01
2013-06-30 373.45 0.00 149.06
2013-03-31 371.90 0.00 137.27
2012-12-31 360.34 0.00 126.16
  • NetScout Systems's level of debt (23.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if NetScout Systems's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (36.8%, greater than 20% of total debt).
  • NetScout Systems is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess NetScout Systems'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. NetScout Systems has a total score of 3/6, 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 NetScout Systems'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 NetScout Systems dividends.
If you bought $2,000 of NetScout Systems 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 NetScout Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NetScout Systems'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
NasdaqGS:NTCT 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 5 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
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 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGS:NTCT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31
2021-03-31
2020-03-31
2019-11-10

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

  • Unable to perform a dividend volatility check as NetScout Systems has not reported any payouts.
  • Unable to verify if NetScout Systems's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NetScout Systems's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NetScout Systems 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 NetScout Systems'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 NetScout Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NetScout Systems 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 NetScout Systems'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
Anil Singhal
COMPENSATION $2,745,534
AGE 65
TENURE AS CEO 35.4 years
CEO Bio

Mr. Anil K. Singhal co-founded NetScout Systems Inc. in 1984 and has been its Chief Executive Officer and Director since June 1984. Mr. Singhal has been Chairman of the Board and President at NetScout Systems, Inc., January 2007. He provides strategic leadership and vision as well as setting operational priorities for NetScout's management team. Mr. Singhal’s vision of “traffic-based instrumentation” has guided NetScout’s product direction and focus for the past three decades, helping to shape the evolution for the industry in the process. He is credited with numerous innovations in the field of network traffic monitoring and analysis that have helped NetScout gain numerous industry accolades. During the past decade, Mr. Singhal has also been an instrumental part of a number of strategic acquisitions that have fortified and enhanced NetScout’s technology, customer base and go-to-market capabilities He served as the Treasurer of NetScout Systems Inc. since January 2001. Mr. Singhal has earned notable recognition for his entrepreneurial success, including the TiE (The Indus Entrepreneur) Boston Lifetime Achievement in 2013, Enterprise Bank’s 2013 George L. Duncan Award of Excellence and Ernst & Young’s New England Entrepreneur of the Year in 1997. He founded NextPoint Networks, Inc. (acquired by NetScout Systems Inc.) and served as its Chief Executive Officer. He served as the President of Netscout Systems Inc. until July 1993. He served as Chief Executive Officer and Treasurer of Netscout Systems Inc. from July 1993 to December 2000. He served as the Senior Architect and Project Manager of Wang Laboratories from 1979 to June 1984. Mr. Singhal served as the Chairman of Netscout Systems Inc. from July 1993 to December 2000. He served as the Chairman of the Board of NextPoint Networks, Inc. He has been a Director of NetScout Systems since January 2001. He served as a Director of Netscout Systems Inc. and NextPoint Networks, Inc. He holds BSEE from BITS, Pilani and MS in Computer Science from University of Illinois, Urbana-Champaign.

CEO Compensation
  • Anil's compensation has increased whilst company is loss making.
  • Anil's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the NetScout Systems management team in years:

12.6
Average Tenure
61
Average Age
  • The average tenure for the NetScout Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Anil Singhal

TITLE
Co-Founder
COMPENSATION
$3M
AGE
65
TENURE
35.4 yrs

Michael Szabados

TITLE
Vice Chairman & COO
COMPENSATION
$2M
AGE
67
TENURE
12.6 yrs

Jean Bua

TITLE
Executive VP
COMPENSATION
$1M
AGE
60
TENURE
8 yrs

John Downing

TITLE
Executive Vice President of Worldwide Sales Operations
COMPENSATION
$1M
AGE
61
TENURE
12.8 yrs

Tony Piazza

TITLE
Vice President of Corporate Finance

Bruce Kelley

TITLE
CTO, Senior VP & Service Provider
AGE
56
TENURE
18.8 yrs

Thor Wallace

TITLE
Chief Information Officer & Senior VP
TENURE
2.8 yrs

Jeff Levinson

TITLE
VP, General Counsel & Secretary
TENURE
14 yrs

Kevin Keough

TITLE
Senior Vice President of Corporate Development
TENURE
4.3 yrs

Chris Gaebler

TITLE
Chief Marketing Officer
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the NetScout Systems board of directors in years:

3.4
Average Tenure
65
Average Age
  • The tenure for the NetScout Systems board of directors is about average.
Board of Directors

Anil Singhal

TITLE
Co-Founder
COMPENSATION
$3M
AGE
65
TENURE
12.8 yrs

Michael Szabados

TITLE
Vice Chairman & COO
COMPENSATION
$2M
AGE
67
TENURE
0.8 yrs

Joe Hadzima

TITLE
Independent Director
COMPENSATION
$265K
AGE
67
TENURE
21.3 yrs

Jack Egan

TITLE
Lead Independent Director
COMPENSATION
$306K
AGE
61

Bob Donahue

TITLE
Independent Director
COMPENSATION
$276K
AGE
70
TENURE
6.7 yrs

Al Grasso

TITLE
Independent Director
COMPENSATION
$247K
AGE
60
TENURE
1.6 yrs

Chris Perretta

TITLE
Independent Director
COMPENSATION
$250K
AGE
61
TENURE
5.2 yrs

Sue Spradley

TITLE
Independent Director
COMPENSATION
$247K
AGE
58
TENURE
1.6 yrs

Vivian Vitale

TITLE
Independent Director
COMPENSATION
$117K
AGE
65
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess NetScout Systems'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. NetScout Systems 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

Is It Time To Consider Buying NetScout Systems, Inc. (NASDAQ:NTCT)?

View our latest analysis for NetScout Systems What is NetScout Systems worth? … However, given that NetScout Systems’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … This is based on its high beta, which is a good indicator for share price volatility.

Simply Wall St -

NetScout Systems (NASDAQ:NTCT) Seems To Use Debt Quite Sensibly

When we think about a company's use of debt, we first look at cash and debt together. … Happily for any shareholders, NetScout Systems actually produced more free cash flow than EBIT over the last year. … Our View NetScout Systems's interest cover was a real negative on this analysis, although the other factors we considered were considerably better There's no doubt that its ability to convert EBIT to free cash flow is pretty flash.

Simply Wall St -

Does The NetScout Systems, Inc. (NASDAQ:NTCT) Share Price Tend To Follow The Market?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … If this beta value holds true in the future, NetScout Systems shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. … What this means for you: Since NetScout Systems tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock.

Simply Wall St -

Those Who Purchased NetScout Systems (NASDAQ:NTCT) Shares Five Years Ago Have A 39% Loss To Show For It

Over five years, NetScout Systems grew its revenue at 17% per year. … So you might argue the NetScout Systems should get more credit for its rather impressive revenue growth over the period. … A Different Perspective While the broader market gained around 8.5% in the last year, NetScout Systems shareholders lost 14%.

Simply Wall St -

Does NetScout Systems, Inc.'s (NASDAQ:NTCT) CEO Pay Matter?

See our latest analysis for NetScout Systems How Does Anil Singhal's Compensation Compare With Similar Sized Companies? … Most shareholders would consider it a positive that Anil Singhal takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. … Shareholders should note that compensation for Anil Singhal is under the median of a group of similar sized companies.

Simply Wall St -

Is There An Opportunity With NetScout Systems, Inc.'s (NASDAQ:NTCT) 49% Undervaluation?

Today we will run through one way of estimating the intrinsic value of NetScout Systems, Inc. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

When Should You Buy NetScout Systems, Inc. (NASDAQ:NTCT)?

saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

NetScout Systems, Inc. (NASDAQ:NTCT): Financial Strength Analysis

Mid-caps stocks, like NetScout Systems, Inc. … Don’t forget that this is a general and concentrated examination of NetScout Systems's financial health, so you should conduct further analysis. … Check out our latest analysis for NetScout Systems

Simply Wall St -

Should You Be Pleased About The CEO Pay At NetScout Systems, Inc.'s (NASDAQ:NTCT)

Anil Singhal has been the CEO of NetScout Systems, Inc. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Anil Singhal's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Have Insiders Been Selling NetScout Systems, Inc. (NASDAQ:NTCT) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … NetScout Systems Insider Transactions Over The Last Year. … It's not particularly great to see insiders were selling shares around current prices

Simply Wall St -

Company Info

Description

NetScout Systems, Inc. provides service assurance, security, and business analytics for digital business services against disruptions in availability, performance, and security. The company offers nGeniusONE management software that enables customers to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules that enable its customers to analyze and troubleshoot traffic in radio access and Wi-Fi networks. It also provides nGeniusPULSE, an active testing tool that enables enterprises to identify infrastructure performance issues and determine application availability, reliability, and performance; and nGenius Business Analytics solution, which enables service providers to analyze their network traffic. In addition, the company offers ISNG, an advanced passive network probe; packet flow systems that deliver targeted network traffic access to various monitoring and security tools and systems; and a suite of test access points that enable non-disruptive access to network traffic. Further, it provides security solutions that enable service providers and enterprises to protect their networks against distributed denial of service attacks under the Arbor brand; and threat detection solutions to identify and investigate potential advanced network threats. The company serves enterprise customers in industries, including financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile operators, wireline operators, cable operators, Internet service providers, and cloud providers; and governmental agencies through a direct sales force, and indirect reseller and distribution channels. It has operations in the United States, Europe, Asia, and internationally. The company was founded in 1984 and is headquartered in Westford, Massachusetts.

Details
Name: NetScout Systems, Inc.
NTCT
Exchange: NasdaqGS
Founded: 1984
$1,889,286,496
74,838,047
Website: http://www.netscout.com
Address: NetScout Systems, Inc.
310 Littleton Road,
Westford,
Massachusetts, 01886,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NTCT Common Stock Nasdaq Global Select US USD 12. Aug 1999
DB NSZ Common Stock Deutsche Boerse AG DE EUR 12. Aug 1999
Number of employees
Current staff
Staff numbers
2,585
NetScout Systems employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:38
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/04
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


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.