Netapp Inc
Exchange: NASDAQSector: TechnologyIndustry: Computer Hardware
NetApp is the intelligent data infrastructure company, combining unified data storage, integrated data, operational and workload services to turn a world of disruption into opportunity for every customer. NetApp creates silo-free infrastructure, harnessing observability and AI to enable the industry’s best data management. As the only enterprise-grade storage service natively embedded in the world’s biggest clouds, our data storage delivers seamless flexibility. In addition, our data services create a data advantage through superior cyber resilience, governance, and application agility. Our operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. No matter the data type, workload, or environment, with NetApp you can transform your data infrastructure to realize your business possibilities.
Current Price
$113.00
+1.13%GoodMoat Value
$123.55
9.3% undervaluedProfile
Valuation (TTM)
Market Cap$22.38B
P/E18.47
EV$19.54B
P/B21.52
Shares Out198.06M
P/Sales3.34
Revenue$6.71B
EV/EBITDA12.64
Netapp Inc (NTAP) Stock Analysis
GoodMoat Analysis
NetApp is a mature data storage and management hardware/software company with a moderate competitive moat and strong profitability, but faces slow growth and high debt. Its current price appears to offer a marginal margin of safety relative to its estimated fair value.
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NetApp Inc. operates in the computer hardware sector, providing hybrid cloud data services and storage solutions. Applying the GoodMoat framework, the company demonstrates a moderate competitive moat, likely scoring in the 5-6 range. Key moat sources include high switching costs for mission-critical enterprise storage systems, potential niche dominance in specific storage protocols, and long-term strategic partnerships with major cloud providers. However, it faces high disruption risk from large tech platforms and cloud-native alternatives. The business shows strong quality indicators in profitability, with an operating margin of 20.3% and a remarkable ROE of 116.5%, though the latter is inflated by its high debt-to-equity ratio of 3.11. Revenue growth is slow at 4.4% YoY, and the high debt level is a concern for the balance sheet quality metric. According to the Decision Framework, the company likely passes the initial Moat & Quality Gate but with reservations due to debt and growth. The valuation assessment shows a current price of $105.5 against a GoodMoat Target of $123.55, implying a potential margin of safety of approximately 17%, which falls into the 'Marginal' (10-20%) band. This, combined with the high debt and slow growth, suggests an overall assessment of 'with caution.' The stock warrants further investigation for a value investor focused on cash-generative, profitable businesses, but requires a deep dive into its debt structure, competitive positioning, and growth catalysts. Analysis based on data as of 2024-05-15.
Market Cap$22.38B
Current Price$113.00
P/E Ratio18.47
Forward P/E—
PEG Ratio1.23
EPS$5.67
Book Value$5.25
P/B Ratio21.52
NTAP Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 493M
Revenue
6.1B
FY19
5.4B
FY20
5.7B
FY21
6.3B
FY22
6.4B
FY23
6.3B
FY24
6.6B
FY25
Net Income
1.2B
FY19
819M
FY20
730M
FY21
937M
FY22
1.3B
FY23
986M
FY24
1.2B
FY25
NTAP 52-Week Range
$91.68
$124.57
50-Day MA: $103.08200-Day MA: $108.13
Did you know?
Profit margin stands at 18.1%.
Netapp Inc (NTAP) Financial Summary
Netapp Inc (NTAP) is a Technology company in the Computer Hardware industry, listed on NASDAQ. The stock currently trades at $113.00 with a market capitalization of $22.38B.
Key valuation metrics include a P/E ratio of 18.47, price-to-book ratio of 21.52, and EPS of $5.67. The company reports a profit margin of 18.1% and return on equity of 116.5%.
NTAP Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $22.38B |
| P/E Ratio | 18.47 |
| EPS | $5.67 |
| P/B Ratio | 21.52 |
| P/S Ratio | 3.34 |
| EV/EBITDA | 12.64 |
| Dividend Yield | 1.89% |
| Profit Margin | 18.1% |
| Return on Equity | 116.5% |
| Debt/Equity | 3.11 |
NTAP Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.15B | $1.17B |
| FY20 | $5.41B | $819.00M |
| FY21 | $5.74B | $730.00M |
| FY22 | $6.32B | $937.00M |
| FY23 | $6.36B | $1.27B |
| FY24 | $6.27B | $986.00M |
| FY25 | $6.57B | $1.19B |
Netapp Inc (NTAP) Valuation
Based on GoodMoat's DCF model, Netapp Inc has a fair value estimate of $123.55. At the current price of $113.00, the stock appears 8.5% undervalued relative to our intrinsic value estimate.
NTAP Quality Indicators
Netapp Inc maintains a profit margin of 18.1% and an operating margin of 20.3%. Return on equity stands at 116.5%. The current ratio is 1.26. Debt-to-equity ratio is 3.11.
About Netapp Inc
NetApp is the intelligent data infrastructure company, combining unified data storage, integrated data, operational and workload services to turn a world of disruption into opportunity for every customer. NetApp creates silo-free infrastructure, harnessing observability and AI to enable the industry’s best data management. As the only enterprise-grade storage service natively embedded in the world’s biggest clouds, our data storage delivers seamless flexibility. In addition, our data services create a data advantage through superior cyber resilience, governance, and application agility. Our operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. No matter the data type, workload, or environment, with NetApp you can transform your data infrastructure to realize your business possibilities.
NTAP Free Cash Flow
Netapp Inc generated $1.34B in trailing twelve-month free cash flow, representing an FCF yield of 5.98%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
NTAP Shares Outstanding
Netapp Inc has 0.20 billion shares outstanding at a share price of $113.00, giving it a market capitalization of $22.38B.
NTAP Recent Insider Trades
Recent insider transactions at Netapp Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| O'Callahan Elizabeth M (EVP, Chief Admin. Officer) | SELL | 1,000 | $96250.00 |
| O'Callahan Elizabeth M (EVP, Chief Admin. Officer) | SELL | 1,000 | $100670.00 |
| De Lorenzo Daniel (VP, Controller & CAO) | SELL | 252 | $25663.68 |