Fact based stock research
NetApp (NasdaqGS:NTAP)

US64110D1046

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

NetApp stock research in summary

netapp.com

ANALYSIS: With an Obermatt Combined Rank of 41 (worse than 59% compared with investment alternatives), NetApp (Technology Hardware & Peripherals, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of NetApp are low in value (priced high) with a consolidated Value Rank of 33 (worse than 67% of alternatives), and are riskily financed (Safety Rank of 36, which means above-average debt burdens) but show above-average growth (Growth Rank of 71). ...read more

RECOMMENDATION: A Combined Rank of 41, is a hold recommendation based on NetApp's financial characteristics. As the company NetApp shows low value with an Obermatt Value Rank of 33 (67% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 71% of comparable companies (Obermatt Growth Rank is 71). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 36 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for NetApp, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	33
Growth Rank	71
Safety Rank	36
Combined Rank	41

Country	USA
Industry	Technology Hardware & Peripherals
Index	Dividends USA, NASDAQ, S&P 500
Size class	X-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: NetApp

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	43	46	33
GROWTH
GROWTH	67	37	83	71
SAFETY
SAFETY	61	37	29	36
SENTIMENT
SENTIMENT	n/a	41	80	^new
360° VIEW
360° VIEW	n/a	20	73	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 25-Oct-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better NetApp is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	43	46	33
GROWTH
GROWTH	67	37	83	71
SAFETY
SAFETY	61	37	29	36
COMBINED
COMBINED	75	24	52	41

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of NetApp the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 33 (worse than 67% compared with alternatives), NetApp shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for NetApp. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 89% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 18 which means that the stock price compared with what market professionals expect for future profits is higher than 82% of comparable companies, indicating a low value concerning NetApp's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 49 which means that the stock price compared with what market professionals expect for future profit levels is higher than 51% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 7 is also low. Compared with invested capital, the stock price is higher than for 93% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 33, is a hold recommendation based on NetApp's stock price compared with the company's operational size and dividend yields. Should dividend investors pick NetApp? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose NetApp only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	32	31	21	18
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	74	55	64	49
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	4	8	7
DIVIDEND YIELD
DIVIDEND YIELD	92	95	90	89
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	63	43	46	33

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of NetApp; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), NetApp shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for NetApp. Capital Growth has a rank of 68, which means that currently professionals expect the company to grow its invested capital more than 49% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 71 (above 71% of alternative investments). But Sales Growth has only a rank of 45, which means that, currently, professionals expect the company to grow less than 55% of its competitors, and Profit Growth is also low at a rank of 49. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for NetApp, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	33	30	47	45
PROFIT GROWTH
PROFIT GROWTH	37	48	53	49
CAPITAL GROWTH
CAPITAL GROWTH	n/a	16	79	68
STOCK RETURNS
STOCK RETURNS	92	91	85	71
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67	37	83	71

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of NetApp.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 36 (better than 36% compared with alternatives), the company NetApp has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of NetApp is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for NetApp. Liquidity is at 87, meaning the company generates more profit to service its debt than 87% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 18, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 82% of its competitors. Leverage is also high at a rank of 19, which means that the company has an above-average debt-to-equity ratio. It has more debt than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 36 (worse than 64% compared with alternatives), NetApp has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	63	13	21	19
REFINANCING
REFINANCING	12	36	14	18
LIQUIDITY
LIQUIDITY	90	75	84	87
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	61	37	29	36

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of NetApp and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	29	5	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	48	100	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	45	98	^new
MARKET PULSE
MARKET PULSE	n/a	66	53	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	41	80	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for NetApp.
Upgrade to a Premium Account to access the latest ranks.