Fundamental analysis · SEC EDGAR · as of 24/04/2026

Fundamental analysis of Netapp, Inc.

NTAP · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

80

out of 100

Netapp, Inc. runs like a cash machine: it converts about 30% of revenue into free cash flow and holds a 20.5% net margin, though it grows at a measured pace. On fundamental quality it scores 80 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +1.7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

NetApp sells enterprise data storage: the arrays where corporate data lives, both in company data centers and integrated into the big public clouds. It is a hardware veteran that carved out a place in the cloud era.

What will shape its future

  • Its alliance with the big three clouds, where its software runs native storage.
  • AI's appetite for data, which revalues fast (all-flash) storage.
  • A mature, competitive market with constant price pressure.

Breakdown by area

I.Growth
54

EPS growth: 14.5% · Revenue growth: 1.7%

II.Profitability
91

Net margin: 20.5% · ROE: 94.4% · ROIC: 73.3%

III.Financial health
95

Net debt/EBITDA: 0.23x · FCF: 30%

Source: SEC EDGAR · as of 24/04/2026

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 63%
ROEbeats 96%
Growthbeats 10%
Cash generationbeats 74%
Less debtbeats 65%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Netapp, Inc. strengths

  • Outstanding return on equity (ROE of 94.4%): it puts shareholder capital to good use.
  • High gross margin (78.5%), pointing to pricing power.
  • Excellent free-cash-flow generation (FCF margin of 30%): profit turns into real cash.
  • High net margin (20.5%): the business is clearly profitable.

Netapp, Inc. risks and weaknesses

  • Its net debt has grown over the period.
  • Weak revenue growth (1.7% annualized).

Netapp, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20215,7447301,171-1,897
20226,318937985-1,476
20236,3621,27486873
20245,6579861,530489
20255,9071,1861,338493
20266,2371,2761,869417

Between 2021 and 2026, revenue went from $5,744M to $6,237M (+9%) and net income went from $730M to $1,276M (+75%). Meanwhile, its margins have widened (from 13% to 20%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Dividend

$2.08

per share, yearly

32.4% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Netapp, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Netapp, Inc. a good company to invest in?

In terms of business quality, Netapp, Inc. scores 80 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Netapp, Inc. a profitable company?

Very. Netapp, Inc. shows a net margin of 20.5% and an ROE of 94.4%, typical of a highly profitable business.

Does Netapp, Inc. have a lot of debt?

Not particularly. Its net debt is 0.23 times its EBITDA, a low level.

Is Netapp, Inc. growing?

Its revenue has grown 1.7% annualized in recent years and its earnings per share 14.5%.

Does Netapp, Inc. generate cash?

Yes. It converts about 30% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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