NetScout Systems is UNDERVALUED at 22.75 per share with modest projections ahead.
NetScout Systems has Sharpe Ratio of -0.16, which conveys that the firm had -0.16% of return per unit of risk over the last month. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. NetScout Systems exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to verify NetScout Systems
mean deviation of 1.29, and Risk Adjusted Performance of
(0.19) to check out the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include NetScout Systems income statement, its balance sheet, and the statement of cash flows. Potential NetScout Systems investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although NetScout Systems investors may use each financial statement separately, they are all related. The changes in NetScout Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on NetScout Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of NetScout Systems
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of NetScout Systems performance into the future periods or doing a reasonable stock valuation. The intrinsic value of NetScout Systems shares is the value that is considered the true value of the share. If
the intrinsic value of NetScout is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares NetScout Systems. Please read more on our
fundamental analysis page.
How effective is NetScout Systems in utilizing its assets?
NetScout Systems reports assets on its Balance Sheet. It represents the amount of NetScout resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, NetScout Systems aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Communications Equipment space. To get a better handle on how balance sheet or income statements item affect NetScout volatility, please check the breakdown of all its
fundamentals.
Are NetScout Systems Earnings Expected to grow?
The
future earnings power of NetScout Systems involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of NetScout Systems factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. NetScout Systems
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of NetScout
expected earnings.
NetScout Systems Gross Profit
NetScout Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NetScout Systems previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NetScout Systems Gross Profit growth over the last 10 years. Please check NetScout Systems'
gross profit and other
fundamental indicators for more details.
Is NetScout Systems valued wisely by the market?
Many companies such as NetScout Systems have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of NetScout is distributed among investors.
Ownership Allocation
NetScout Systems maintains a total of seventy-two million four hundred sixty thousand
outstanding shares. The majority of NetScout Systems
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in NetScout Systems to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in NetScout Systems. Please pay attention to any change in the institutional holdings of NetScout Systems as this could imply that something significant has changed or about to change at the company. Also note that almost five million seventy-two thousand two hundred invesors are currently shorting NetScout Systems expressing very little confidence in its
future performance.
| Retail Investors | -7.08 |
| Insiders | 4.1 |
| Institutions | 102.98 |
| 2017 | 2018 | 2019 | 2020 (projected) |
Interest Expense | 12.63 M | 26.14 M | 20.6 M | 22.22 M | Gross Profit | 714.88 M | 655.79 M | 649.63 M | 609.67 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. NetScout Systems has an asset utilization ratio of 647.94 percent. This implies that the company is making $6.48 for each dollar of assets. An increasing asset utilization means that NetScout Systems is more efficient with each dollar of assets it utilizes for everyday operations.
| Assets Non Current2.1 B | Goodwill2 B | |
| Current Assets | 634.28 Million | 13.53 |
| Assets Non Current | 2.08 Billion | 44.36 |
| Goodwill | 1.95 Billion | 41.64 |
| Tax Assets | 21.81 Million | 0.47 |
NetScout is expecting lower volatility in November
Newest jensen alpha is at -0.3. NetScout Systems exhibits very low volatility with skewness of -0.76 and kurtosis of 0.82. However, we advise investors to further study NetScout Systems technical indicators to make sure all market info is available and is reliable.
Our Final Perspective on NetScout Systems
Whereas many other companies in the software—infrastructure industry are either recovering or due for a correction, NetScout Systems may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of NetScout as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NetScout Systems.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of NetScout Systems. Please refer to our
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