NetApp Inc.
Find Ratings ReportsNETAPP INC's gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. NETAPP INC has weak liquidity. Currently, the Quick Ratio is 0.99 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 9.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 1606.0 | 1526.0 |
EBITDA ($mil) | 445.0 | 327.0 |
EBIT ($mil) | 382.0 | 262.0 |
Net Income ($mil) | 313.0 | 65.0 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2923.0 | 3147.0 |
Total Assets ($mil) | 9369.0 | 9710.0 |
Total Debt ($mil) | 2656.0 | 2690.0 |
Equity ($mil) | 994.0 | 1102.0 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 75.28 | 69.46 |
EBITDA Margin | 27.7 | 21.42 |
Operating Margin | 23.79 | 17.17 |
Sales Turnover | 0.66 | 0.67 |
Return on Assets | 10.03 | 13.26 |
Return on Equity | 94.57 | 116.88 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.15 | 1.34 |
Debt/Capital | 0.73 | 0.71 |
Interest Expense | 17.0 | 16.0 |
Interest Coverage | 22.47 | 16.38 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 206.0 | 214.0 |
Div / share | 0.5 | 0.5 |
EPS | 1.48 | 0.3 |
Book value / share | 4.83 | 5.15 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1938825.0 | 1867101.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 21.17 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, NETAPP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NTAP 23.21 | Peers 53.34 | NTAP 16.08 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. NTAP is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NTAP is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NTAP 15.15 | Peers 26.06 | NTAP 2.01 | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. NTAP is trading at a significant discount to its peers. |
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NTAP trades at a valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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NTAP 21.17 | Peers 23.59 | NTAP -24.27 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NTAP is trading at a discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, NTAP is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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NTAP 3.40 | Peers 14.13 | NTAP -4.34 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NTAP is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NTAP significantly trails its peers on the basis of sales growth. |
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