NetApp Stock Analysis, Valuation (NASDAQ:NTAP)

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$69.22 $0.33 (0.47%) NTAP stock closing price Apr 18, 2018 (Closing)
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NetApp
Updated on : Apr 18, 2018
previous close
NTAP 69.2 (0%)
NASDAQ 7295.2 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Storage Devices
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.9%
Operating Profit
Operating Margin:
18.9%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
1.54B
Debt/Equity Ratio:
 0.71
Compared to the industry
Cash Flow
Operating cash flow:
$420M
Net Income:
-$506M
Dividend Yield
NTAP dividend yield:
1.14%
PROS      CONS
Operating Margins
FCF Margin
Long Term Growth
Net Margins
High Debt Burden
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NTAP PS :
3.2
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
-0.2%
Free Cash Flow Margin:
39.3%
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NetApp Stock Analysis

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Investors can watch the Amigobulls NetApp stock analysis video here. Our analyst opinion covering the buy and sell arguments for NTAP stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

NetApp Inc. Stock Rating 3.3/5

Amigobulls NTAP stock analysis relies on business fundamentals such as NetApp revenue growth, profits and return on equity measures from the latest quarter 2018 Q3 earnings. We compare NetApp valuation with its sector peers to gauge relative attractiveness of NTAP stock. NetApp stock rating is our opinion about the business fundamentals of the company.

Should you buy NTAP stock?

  • The TTM operating margin was good at 18.9% for NetApp.
  • The company has a good Free Cash Flow (FCF) margin of 39.3%.

Should you sell NTAP stock?

  • Sales declined by -1.9% annually over the last 5 years.
  • Over the last 12 months, NetApp had an average Net loss of -0.1%.
  • With a debt/equity ratio of  0.71, NetApp is highly leveraged in comparison to Computer and Technology peers.
  • A negative ROE of -0.2% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and NetApp stock

Investors can use Amigobulls NetApp stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, NetApp revenue growth and profit or net income are two main metrics which help in identifying whether NTAP stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.