NTAPNTAP
US • —
$154.76
P/E
24.34
PEG
2.05
FCF Yield
—
Rev Growth YoY
+5.4% YoY
Gross Margin
70.7%
Health Score
6/10
D/E Ratio
1.84
Confidence
MEDIUM
Business Snapshot
NetApp provides cloud-led, data-centric storage and data management solutions, including all-flash storage arrays and hybrid cloud services. The company operates in the highly competitive enterprise data storage market, where it maintains a strong position as a leading player alongside Dell Technologies and Pure Storage. NetApp’s gross margin of 70.7% suggests it sells differentiated products with pricing power in its market segment. The company’s focus on transitioning from legacy hardware to subscription-based software and cloud services is a key strategic characteristic.
Financial Health
Gross margin stands at 70.7%, but year-over-year comparison data is unavailable to determine direction. Net margin is solid at 18.4%, indicating healthy bottom-line profitability after expenses...
Risk Assessment
- DEBT — Debt/equity of 1.84x indicates meaningful financial leverage, which could constrain capital returns or increase refinancing risk.
- VALUATION — P/E of 24.34x, while near the sector average of 22x, is at a slight premium for a company with only 5.4% revenue growth.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- ANALYST CONVICTION — Only 43% of analysts rate the stock a Buy, with 54% at Hold, reflecting mixed conviction about near-term upside.
- INSIDER ACTIVITY — Over the last 90 days, 0 insider purchases occurred versus 8 insider sales, a net sell signal that often precedes cautious management sentiment....
Gross margin stands at 70.7%, but year-over-year comparison data is unavailable to determine direction. Net margin is solid at 18.4%, indicating healthy bottom-line profitability after expenses. The balance sheet carries some risk with a debt-to-equity ratio of 1.84x, while the current ratio of 1.44x provides adequate short-term liquidity coverage. Return on equity is exceptionally high at 114.2%, though this is partly inflated by the elevated leverage ratio. Free cash flow data is unavailable, making it impossible to assess cash generation or reinvestment capacity. Overall financial health is acceptable but hampered by elevated leverage and missing cash flow transparency.
- DEBT — Debt/equity of 1.84x indicates meaningful financial leverage, which could constrain capital returns or increase refinancing risk. - VALUATION — P/E of 24.34x, while near the sector average of 22x, is at a slight premium for a company with only 5.4% revenue growth. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - ANALYST CONVICTION — Only 43% of analysts rate the stock a Buy, with 54% at Hold, reflecting mixed conviction about near-term upside. - INSIDER ACTIVITY — Over the last 90 days, 0 insider purchases occurred versus 8 insider sales, a net sell signal that often precedes cautious management sentiment.
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