NetApp, Inc.
NetApp, Inc. Fundamental Analysis
NetApp, Inc. (NTA.DE) shows moderate financial fundamentals with a PE ratio of 17.71, profit margin of 18.07%, and ROE of 1.17%. The company generates $6.7B in annual revenue with moderate year-over-year growth of 4.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NTA.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNTA.DE demonstrates superior asset utilization.
Valuation Score
ExcellentNTA.DE trades at attractive valuation levels.
Growth Score
ModerateNTA.DE shows steady but slowing expansion.
Financial Health Score
ModerateNTA.DE shows balanced financial health with some risks.
Profitability Score
ExcellentNTA.DE achieves industry-leading margins.
Key Financial Metrics
Is NTA.DE Expensive or Cheap?
P/E Ratio
NTA.DE trades at 17.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NTA.DE's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values NetApp, Inc. at 18.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.45 times EBITDA. This signals the market has high growth expectations.
How Well Does NTA.DE Make Money?
Net Profit Margin
For every $100 in sales, NetApp, Inc. keeps $18.07 as profit after all expenses.
Operating Margin
Core operations generate 22.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.17 in profit for every $100 of shareholder equity.
ROA
NetApp, Inc. generates $12.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NetApp, Inc. generates strong operating cash flow of $1.79B, reflecting robust business health.
Free Cash Flow
NetApp, Inc. generates strong free cash flow of $1.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.13 in free cash annually.
FCF Yield
NTA.DE converts 7.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.37
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How NTA.DE Stacks Against Its Sector Peers
| Metric | NTA.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.71 | 35.01 | Better (Cheaper) |
| ROE | 116.57% | 1039.00% | Weak |
| Net Margin | 18.07% | 5896831141.00% | Weak |
| Debt/Equity | 2.54 | 0.58 | Weak (High Leverage) |
| Current Ratio | 1.37 | 4.98 | Neutral |
| ROA | 12.15% | -293653.00% (disorted) | Strong |
NTA.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NetApp, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.91%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
63.27%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
60.18%
Industry Style: Growth, Innovation, High Beta
High Growth