NetApp Inc (NTAP) Stock

NetApp Inc trades at a P/E ratio of 20.76, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 15.38 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.54 indicates reasonable value when growth is considered.

With a beta of 1.41, NetApp Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 23.93 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

NetApp Inc achieves a profit margin of 17.70%, meaning it retains $17.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 24.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 125.40% and ROA at 10.10%, the company generates strong returns on invested capital.

NetApp Inc's revenue grew by 2.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 6.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SOFTWARE - INFRASTRUCTURE industry averages for proper context.

NetApp Inc offers a dividend yield of 1.75%, paying $2.08 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Jan 2, 2026.

The dividend sustainability can be assessed through the payout ratio - NetApp Inc pays $2.08 per share in dividends against earnings of $5.57 per share, resulting in a payout ratio of 37.34%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Jan 21, 2026.

NetApp Inc has a market capitalization of $23.1B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 198.06M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SOFTWARE - INFRASTRUCTURE industry, it competes with other firms in this sector.

NetApp Inc's book value per share is $4.98, while the current stock price is $114.11, resulting in a price-to-book (P/B) ratio of 22.91. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

20 analysts cover NTAP with 40% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $124.33 implies 9.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 5 Buy, 12 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.