NTCTNETSCOUT SYSTEMS INC
Services-Computer Integrated Systems Design
- Revenue
- $859M
- 4.5% YoY
- Operating margin
- 12.8%
- 129% YoY
- EBITDA
- $166M
- 155% YoY
- Market cap
- $2.8B
- Employees
- 2,073
- $415K revenue each
- Net debt / EBITDA
- 0.3×
- $47M net debt
- AI in 10-K
- 9.3
- mentions per 10K words
Takeover score 3 of 13
Fixable underperformance 2 of 7
- TSR below peersYes3 of 5 years3+ of last 5 years
- High CEO pay despite TSRNo$3M medianMedian CEO pay ≥ $15M while TSR trails
- Earnings not backed by cashNo308% of net incomeCash flow under 80% of net income
- Dilutive SBCNo7% of revenueOver 10% of revenue
- Payouts exceed cash flowNo21% of cash flowBuybacks + dividends over cash flow
- Goodwill-heavyYes47% of assetsOver 40% of assets
- Shareholder dissentNo89% lowest supportAny vote under 80% support
Buyer economics 1 of 4
- Low revenue per employeeNo$415K · 45th pctBottom quartile of its SIC industry
- Quiet on AINo9.3 per 10K words · 92nd pctBottom quartile of AI mentions in 10-Ks
- Net cashNo0.3× EBITDA net debtMore cash than debt, positive EBITDA
- Buyout-sizedYes$2.8B market capMarket cap $500M–$5B
Catalysts 0 of 2
- Active 13DNo0 filingsActive-intent 13D in 18 months
- Net insider sellingNo−$3M netNet sales over $10M in 12 months
Financials
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | YoY |
|---|---|---|---|---|---|---|
| Revenue | $856M | $915M | $829M | $823M | $859M | 4.5% |
| Operating income | $49M | $78M | −$150M | −$368M | $110M | 130% |
| Net income | $36M | $60M | −$148M | −$367M | $96M | 126% |
| Operating cash flow | $296M | $157M | $59M | $218M | $295M | 35% |
| Capex | $10M | $10M | $6M | $5M | $9M | 69% |
| Stock-based comp | $56M | $62M | $71M | $65M | $60M | 7.5% |
| Buybacks | $36M | $150M | $50M | $25M | $61M | 141% |
Deal filings
| Filed | Form | Acquirer | Price | Premium |
|---|---|---|---|---|
| May 8, 2015 | DEFM14A | Danaher Corporation | $45.00 | 30% |
| Dec 3, 2014 | PREM14A | Danaher Corporation | $45.00 | 30.5% |
13D filers
None on file.
Insider trading
- Open-market buys, 12 mo
- $0 · 0
- Open-market sells, 12 mo
- $3M · 18
- Net
- −$3M
Pay vs performance
| Year | CEO total comp | Comp actually paid | TSR (indexed) | Peer TSR |
|---|---|---|---|---|
| FY2026 | $3M | $5M | 113 | 122 |
| FY2025 | $2M | $2M | 75 | 120 |
| FY2024 | $3M | $521K | 78 | 110 |
| FY2023 | $5M | $4M | 102 | 87 |
| FY2022 | $4M | $5M | 114 | 103 |