NetApp (NTAP)
Information Technology · $38.8B market cap · SEC CIK 0001002047
fundamentals score out of 100
Next reports on Mar 4, 2027, with analysts expecting $2.41 in earnings per share.
The case for NTAP
- Generated $1.9B of free cash flow in FY2025, 27% of revenue.
- Earns 114% on shareholder equity, a figure flattered by a small equity base.
- Revenue growing 12.2% year over year.
- Earnings per share up 25.2%.
- Pays a 2.6% dividend while you wait.
- Gross margin of 71% absorbs cost shocks.
The case against
- Priced at 23× book value. Very little hard asset backing here.
- Swings harder than the market (beta 1.54).
- Growth is weak (40/100): revenue +12.2%, EPS +25.2%, +3.8% a year over five years.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 51 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 78 |
| Momentumhow the price has behaved lately | 87 |
| Stabilityhow violently it moves, what it owes and what it pays you | 56 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 27.4× |
|---|---|
| Price / book | 23.43× |
| Price / sales | 5.3× |
| Revenue growth (YoY) | +12.2% |
| EPS growth (YoY) | +25.2% |
| Gross margin | 71% |
| Operating margin | 25% |
| Net margin | 19% |
| Return on equity | 114% |
| Debt / equity | 1.66× |
| Current ratio | 1.24 |
| Dividend yield | 2.55% |
| Beta | 1.54 |
| 52-week range | $93.69 – $209.06 |
| Position in that range | 86% of the way up |
| 3-month return | +24.1% |
| 1-year return | +58.3% |
Five years of financials, as filed
Pulled from NetApp's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $6.9B | $6.6B | $6.3B | $6.4B | $6.3B |
| Gross profit | $4.9B | $4.6B | $4.4B | $4.2B | $4.2B |
| Operating income | $1.7B | $1.3B | $1.2B | $1.0B | $1.2B |
| Net income | $1.3B | $1.2B | $986M | $1.3B | $937M |
| Operating cash flow | $2.1B | $1.5B | $1.7B | $1.1B | $1.2B |
| Capital expenditure | $198M | $168M | $155M | $239M | $226M |
| Total assets | $10.0B | $9.0B | $9.4B | $9.7B | $9.5B |
| Total liabilities | $8.8B | $8.0B | $8.4B | $8.6B | $8.6B |
| Shareholder equity | $1.2B | $995M | $994M | $1.1B | $882M |
| Cash | $1.6B | $1.5B | $1.8B | $2.6B | $4.2B |
| Long-term debt | $2.5B | $1.2B | $2.0B | $2.4B | $2.4B |
| Free cash flow | $1.9B | $1.3B | $1.5B | $868M | $985M |
| Gross margin | 70.7% | 70.2% | 70.7% | 66.2% | 66.8% |
| Operating margin | 24.2% | 20.3% | 19.4% | 16.0% | 18.3% |
| Net margin | 18.4% | 18.0% | 15.7% | 20.0% | 14.8% |
| Diluted shares | 201M | 209M | 213M | 220M | 229M |
Share count is down 12.2% over 4 years. Buybacks have been shrinking the pie.
What NetApp says it does
Overview NetApp, Inc. (NetApp, we, us, or the Company), headquartered in San Jose, California, is a global leader in Intelligent Data Infrastructure. Since our founding in 1992, we have transformed from a pioneering storage hardware provider into a software-driven, cloud-centric data infrastructure company. Our flagship ONTAP® data management software, together with a comprehensive portfolio of all-flash, hybrid-flash, and cloud-native solutions, forms the backbone of digital transformation for thousands of enterprises worldwide. NetApp empowers organizations to manage, protect, and leverage data across on-premises, hybrid, and multi-cloud environments. We are well positioned to enable Intelligent Data Infrastructure for our customers and help them realize the full promise of artificial intelligence (AI) providing solutions that connect, protect, and activate data across every data environment—on-premises, in the cloud, and at the…
Risk factors NTAP lists in its 10-K
- Credit Facility and Commercial Paper Program
- Material Capital Expenditure Requirements
- Dividends and Stock Repurchase Program
- Goodwill and Purchased Intangible Assets
- Quantitative and Qualitative Disclosures about Market Risk
- Foreign Currency Exchange Rate Risk
- Financial Statements and Supplementary Data
- Total liabilities and stockholders' equity
- (In millions, except per share amounts)
- Shares used in net income per share calculations
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities
- Effect of exchange rate changes on cash, cash equivalents and restricted cash