NTAPNTAP
US • —
$167.74
P/E
26.38
PEG
2.22
FCF Yield
5.8%
Rev Growth YoY
+5.4% YoY
Gross Margin
70.7%
Health Score
8/10
D/E Ratio
1.84
Confidence
MEDIUM
Business Snapshot
NetApp (NTAP) is a hybrid cloud data services and data management company, generating primary revenue from its all-flash storage arrays, cloud storage solutions, and associated software and support services. The company operates in the data storage and cloud infrastructure market, competing with Dell Technologies, Pure Storage, and public cloud providers — holding a strong position as an established leader in enterprise storage solutions. With a market capitalization of $32.38B, NTAP is a large-cap technology company with a substantial free cash flow generation of $1.87B, reflecting its mature yet cash-rich business model. A defining characteristic of NetApp is its transition from traditional hardware storage to a hybrid cloud platform model, which allows it to straddle both on-premise enterprise data centers and public cloud environments.
Financial Health
NetApp's gross margin stands at a robust 70.7% with a net margin of 18.4%, indicating strong pricing power and efficient cost management. The balance sheet shows a Debt/Equity ratio of 1.84x and a current ratio of 1.44x, positioning the company with manageable leverage and adequate short-term liquidity to cover obligations...
Risk Assessment
- VALUATION — Price/Book of 15.88x is exceptionally high, signaling that the market places a large premium on the company's book value, a common characteristic of asset-light tech firms.
- DEBT — Debt/Equity of 1.84x is elevated, indicating the company uses moderate financial leverage that could amplify earnings volatility in a downturn.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — The Python DCF estimate of $136.57 implies the current price of $167.74 is at a 22.8% premium to intrinsic value, suggesting limited upside from a pure cash-flow perspective.
- INSIDER ACTIVITY — 4 insider sells versus 0 buys over the last 90 days....
NetApp's gross margin stands at a robust 70.7% with a net margin of 18.4%, indicating strong pricing power and efficient cost management. The balance sheet shows a Debt/Equity ratio of 1.84x and a current ratio of 1.44x, positioning the company with manageable leverage and adequate short-term liquidity to cover obligations. Free cash flow is a significant $1.87B, producing a healthy FCF yield of 5.8%, confirming the company is a strong cash generator rather than a cash burner. Overall, NetApp's financial health is very solid, providing ample capacity for dividends, share buybacks, and strategic reinvestment in its cloud transition.
- VALUATION — Price/Book of 15.88x is exceptionally high, signaling that the market places a large premium on the company's book value, a common characteristic of asset-light tech firms. - DEBT — Debt/Equity of 1.84x is elevated, indicating the company uses moderate financial leverage that could amplify earnings volatility in a downturn. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — The Python DCF estimate of $136.57 implies the current price of $167.74 is at a 22.8% premium to intrinsic value, suggesting limited upside from a pure cash-flow perspective. - INSIDER ACTIVITY — 4 insider sells versus 0 buys over the last 90 days.
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