NetApp (NTAP) has an expected market cap-to-revenue ratio of 3.45x for fiscal 2019 and 3.29x for 2020. The company’s EV-to-revenue (enterprise value-to-revenue) ratio is expected to be 3.03x in 2019 and 2.96x in 2020, while its EV-to-EBITDA ratio is expected to be 13.0x in 2019 and 12.0x in 2020.
The company’s estimated price-to-book ratio is expected to be 11.2x in 2019 and 10.6x in 2020. NetApp’s PE ratio is expected to be 24.3x in 2019 and 20.7x in 2020.
Analysts expect NetApp’s operating margin to be 20.5% in 2019 and to expand to 21.8% in 2020. Its net margin is expected to be 14.6% in 2019 and 15.9% in 2020. Its return on assets is expected to be 10% in 2019 and 10.7% in 2020, and its return on equity is expected to be 51.1% in 2019 and 69.2% in 2020.
Balance sheet analysis
NetApp’s ratio of capex to current assets is expected to be 2.9% in 2019 and 2.8% in 2020. Its cash flow-to-sales ratio is expected to be 22.1% in 2019, and it could rise to 23.3% in 2020.
NetApp has a dividend yield of 1.9%, indicating an annualized payout of $1.60 per share and a payout ratio of 45.3%. The dividend yields of storage peers Western Digital (WDC), IBM (IBM), Seagate (STX), and Hewlett Packard Enterprise (HPE) are 3%, 4.3%, 4.8%, and 2.8%, respectively.
NetApp has increased its dividend at a compound annual growth rate of 7.4% over the last three years.