NetScout Systems Profit Margin vs. Gross Profit

NTCT Stock  USD 22.90  0.77  3.48%   
Based on NetScout Systems' profitability indicators, NetScout Systems may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess NetScout Systems' ability to earn profits and add value for shareholders.

NetScout Systems Net Profit Margin

(0.17)

At this time, NetScout Systems' Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 1.94 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.07 in 2024. At this time, NetScout Systems' Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Total Other Income Expense Net is likely to gain to about 5.6 M in 2024, despite the fact that Net Loss is likely to grow to (140.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.830.7741
Notably Up
Pretty Stable
For NetScout Systems profitability analysis, we use financial ratios and fundamental drivers that measure the ability of NetScout Systems to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well NetScout Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between NetScout Systems's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of NetScout Systems over time as well as its relative position and ranking within its peers.
  

NetScout Systems' Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more information on how to buy NetScout Stock please use our How to Invest in NetScout Systems guide.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NetScout Systems. If investors know NetScout will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NetScout Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.56)
Earnings Share
(8.39)
Revenue Per Share
11.042
Quarterly Revenue Growth
(0.03)
Return On Assets
0.01
The market value of NetScout Systems is measured differently than its book value, which is the value of NetScout that is recorded on the company's balance sheet. Investors also form their own opinion of NetScout Systems' value that differs from its market value or its book value, called intrinsic value, which is NetScout Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NetScout Systems' market value can be influenced by many factors that don't directly affect NetScout Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NetScout Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if NetScout Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetScout Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

NetScout Systems Gross Profit vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining NetScout Systems's current stock value. Our valuation model uses many indicators to compare NetScout Systems value to that of its competitors to determine the firm's financial worth.
NetScout Systems is rated below average in profit margin category among its peers. It is regarded fourth in gross profit category among its peers . At this time, NetScout Systems' Net Loss is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value NetScout Systems by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

NetScout Gross Profit vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

NetScout Systems

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.76) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

NetScout Systems

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
641.39 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

NetScout Gross Profit Comparison

NetScout Systems is currently under evaluation in gross profit category among its peers.

NetScout Systems Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in NetScout Systems, profitability is also one of the essential criteria for including it into their portfolios because, without profit, NetScout Systems will eventually generate negative long term returns. The profitability progress is the general direction of NetScout Systems' change in net profit over the period of time. It can combine multiple indicators of NetScout Systems, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income3.6 M3.8 M
Operating Income-149.8 M-142.3 M
Income Before Tax-144.5 M-137.3 M
Total Other Income Expense Net5.3 M5.6 M
Net Loss-147.7 M-140.3 M
Income Tax Expense3.2 M2.9 M
Net Income Applicable To Common Shares68.6 M72 M
Net Loss-147.7 M-140.3 M
Non Operating Income Net Other1.1 M1.2 M
Interest Income9.6 M10.1 M
Net Interest Income951 K998.5 K
Change To Netincome10.8 M13.3 M
Net Loss(2.07)(1.96)
Income Quality(0.40)(0.42)
Net Income Per E B T 1.02  1.07 

NetScout Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on NetScout Systems. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of NetScout Systems position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the NetScout Systems' important profitability drivers and their relationship over time.

Use NetScout Systems in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if NetScout Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NetScout Systems will appreciate offsetting losses from the drop in the long position's value.

NetScout Systems Pair Trading

NetScout Systems Pair Trading Analysis

The ability to find closely correlated positions to NetScout Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NetScout Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back NetScout Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling NetScout Systems to buy it.
The correlation of NetScout Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as NetScout Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NetScout Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for NetScout Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Tools for NetScout Stock Analysis

When running NetScout Systems' price analysis, check to measure NetScout Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy NetScout Systems is operating at the current time. Most of NetScout Systems' value examination focuses on studying past and present price action to predict the probability of NetScout Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NetScout Systems' price. Additionally, you may evaluate how the addition of NetScout Systems to your portfolios can decrease your overall portfolio volatility.