Is the business good?
How good a business is NTCT?
NetScout Systems, Inc. earns 8.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.8%
Return on invested capital · cost of capital 9.0% · 0.16 points below what the capital costs: growth destroys value
- Operating margin
- 13%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q4 2026
- Cash conversion
- 2.99×
Cash conversion · every dollar of reported profit arrived as cash, and more
- R&D as % of revenue
- 19%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 4.5% |
| FY2022 | 5.7% |
| FY2023 | 8.5% |
| FY2024 | −18% |
| FY2025 | −45% |
| FY2026 | 13% |
Details›
- Gross margin12 months to Q4 2026
- 79%
- Operating margin12 months to Q4 2026
- 13%
- Net margin12 months to Q4 2026
- 11%
- Free cash flow margin
- 33%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $859M
- Free cash flow, trailing twelve months
- $285M
- Net income, trailing twelve months
- $96M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #64 of 78 by Smart Score