NetScout Systems, Inc.
Rank #229Capital ReturnNTCT · Nasdaq · Technology
NetScout Systems, Inc. (NTCT) — Rank #229 by gross profitability (GP/assets 0.30) · ROE 5.7% · Piotroski F-Score N/A.
As-of 2026-09-15 · CIK 0001078075 · all metrics point-in-time as of the filing date.
About
NetScout Systems, Inc. provides carrier service assurance, cybersecurity, and Distributed Denial-of-Service (DDoS) solutions to protect digital business services against disruptions.
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It offers nGeniusONE management software to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules to analyze and troubleshoot traffic in radio access and Wi-Fi networks; and Omnis Insights, a solution that is designed to generate a high-fidelity and curated dataset that strengthens observability and cybersecurity operations. Its platform provides real-time generation and analysis of information-rich, high-volume network-derived data for use its applications and partner networks. In addition, it offers ISNG, a real-time information platform that provides insights to optimize network performance; packet flow systems that delivers targeted network traffic access to a range of monitoring and cybersecurity tools and systems, including the nGeniusONE application; vSTREAM, a virtualized form factor version; Infinistream, an advanced passive network probe; and markets test access points that enables full and non-disruptive access to network traffic. Further, the company provides cybersecurity solutions to protect networks against DDoS attacks under the Arbor solutions, including Arbor Sightline, Arbor Threat Mitigation System, Arbor Insight, Arbor Edge Defense, and Omnis Cyber Intelligence solutions. It serves enterprise customers in financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile, wireline, and cable operators, internet service providers, and cloud providers industries; and government and associated agencies through a direct sales force, and indirect reseller and distribution channels.
The company was incorporated in 1984 and is headquartered in Westford, Massachusetts.
- Industry
- Software - Infrastructure
- Sector
- Technology
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- March 31
- Website
- netscout.com
Price History
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
$2.78B
P/E (annual)
29.4
P/S (annual)
3.2
P/B
1.7
P/OCF (annual)
9.4
Shareholder Yield
6.7%
Employees
2,052
Industry
Software - Infrastructure
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passTerry Smith quality gate
Passes 2/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
-2.1%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -6.7% — per-share value needs a total required return of -8.8% once share-count change is priced in.
vs. own 6-year median revenue growth: 6.2%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
-5.8%
r = 10% (base)
-2.1%
r = 12%
1.1%
Net debt / market cap: -23.9%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Disclosure regression check
2 previously-disclosed line items are no longer reported. Worth checking the filing for why.
FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.30
Primary signal (Novy-Marx).
5th of 8 SIC 7373 peers
Return on equity
5.7%
Gross margin
79.4%
1st of 7 SIC 7373 peers
Revenue growth (YoY)
-5.5%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
—
Revenue CAGR (5Y)
—
Earnings CAGR (3Y)
17.0%
FCF CAGR (3Y)
—
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
0.39
1st of 8 SIC 7373 peers (best = lowest)
Current ratio
1.83×
2nd of 8 SIC 7373 peers
Quick ratio
1.68×
Net cash
$668.47M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$285.43M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
1.99
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
7.0%
Stock-based comp intensity.
Piotroski F-Score
F-Score
N/A
Only 8/9 components determinable.
Lifecycle Phase History
Lynch sell alert: Turnaround stalled
Classified startup for 2 consecutive fiscal years (2019-03-31, 2020-03-31) with no recovery to a healthier phase -- Lynch's turnaround rule: if it hasn't turned around by now, assume it isn't going to.