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4-Traders Homepage  >  Equities  >  Nasdaq  >  NetApp Inc.    NTAP

Delayed Quote. Delayed  - 05/31 10:00:02 pm
25.53 USD   +0.87%
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05/26 Signet and NetApp drop while Dollar Tree and US Foods climb
Analysis summary4-Traders Strategies 

NetApp Inc. : Good time to sell off

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02/23/2012 | 02:17pm
Opinion : Bearish under USD 44
Target price : USD 39
Stop loss: USD 44.5
Computer Hardware

NetApp is a leading provider of unified storage solutions, which span both block and file based solutions in a single system.

In the last earnings release the company reported 3Q 2012 results in line with analysts’ estimates. For the quarter ended in January NetApp’s revenue rose 21% to $1.57 billion a year earlier. These numbers allowed company to deliver ninth consecutive quarter over 20% year over year revenue growth. Therefore, the third-quarter earnings fell 36% due principally to higher charges and weaker margins.
According to Thomson-Reuters’ consensus, the stock is worth expensive. In fact price earnings ratio for this year is estimated at 28.06; also the “enterprise value / revenue” is high with estimated coefficient for this year at 2.06. These value’s levels are making the security more expensive than industry average.

Technically, the share is close to short and mid-term resistance. This area between 43 and 44 USD could stop the bullish trend seen since early January. Also in weekly data the share is in contact with a long-term resistance at 43.42 USD. The bearish trend could allow share to fill in the gap, which is formed last November. A bullish gap is formed on the occasion of earnings releases. The proximity of resistance levels could push the share in a downward trend in order to fill in the new gap.

Both technical pattern and high value’s fundamental levels, allow us to imagine a bearish trend. We could fix the target price around 40 USD short-term support and moving average 20 periods’ area. We suggest a stop loss above 44 USD, the cross of this zone can allow to continue a bullish trend.

NetApp Inc. : NetApp Inc. : Good time to sell off

© Zonebourse.com 2012

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Financial Ratios

Size 2017e 2018e
Capitalization 7 317 M$ -
Entreprise Value (EV) 5 274 M$ 5 917 M$
Valuation 2017e 2018e
P/E ratio (Price / EPS) 20,0x 19,2x
Capitalization / Revenue 1,38x 1,39x
EV / Revenue 0,99x 1,12x
EV / EBITDA 5,13x 5,49x
Yield (DPS / Price) 2,97% 2,92%
Price to book (Price / BVPS) 2,83x 2,98x
Profitability 2017e 2018e
Operating Margin (EBIT / Sales) 14,2% 14,9%
operating Leverage (Delta EBIT / Delta Sales) - -
Net Margin (Net Profit / Revenue) 6,52% 5,91%
ROA (Net Profit / Asset) 5,67% 6,06%
ROE (Net Profit / Equities) 21,6% 17,0%
Rate of Dividend 59,5% 56,1%
Balance Sheet Analysis 2017e 2018e
CAPEX / Sales   3,18% 3,22%
Cash Flow / Sales 17,0% 17,9%
Capital Intensity (Assets / Sales) 1,15x 0,97x
Financial Leverage (Net Debt / EBITDA) -1,99x -1,30x
Income Statement Evolution
More Financials
EPS Revisions