NetApp
What Fools say:
Here's how NetApp's CAPS rating stacks up against some of its peers and competitors:
Market Cap (billions) |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Hewlett-Packard |
$114.5 |
15.9 |
**** |
EMC |
$35.5 |
22.9 |
***** |
NetApp |
$9.0 |
31.2 |
*** |
Brocade Communications Systems |
$2.9 |
49.2 |
*** |
STEC |
$0.7 |
125.9 |
*** |
In our Motley Fool CAPS community, the bullish arguments for NetApp focus on the high quality of and growing demand for its storage products. Bears like CAPS player Geo113 see a business model with a narrow focus that exposes the company to sudden downturns in business spending.
What management does:
NetApp's management is keeping a firm grip on cash flow margins, on top of impressive sales growth. Under those circumstances, I'm inclined to forgive some slippage in net margins. Maybe it's just a clever tax-reduction strategy.
10/2006 |
1/2007 |
4/2007 |
7/2007 |
10/2007 |
1/2008 |
|
---|---|---|---|---|---|---|
Gross |
60.5% |
60.6% |
60.8% |
60.9% |
60.8% |
60.8% |
Operating |
12.4% |
11.1% |
9.8% |
8.5% |
8.4% |
9.0% |
Net |
11.5% |
10.3% |
10.6% |
9.7% |
9.1% |
9.8% |
FCF/ |
23.7% |
26.0% |
24.9% |
25.2% |
24.2% |
23.6% |
Growth (YOY) |
10/2006 |
1/2007 |
4/2007 |
7/2007 |
10/2007 |
1/2008 |
---|---|---|---|---|---|---|
Revenue |
34.1% |
35.4% |
35.7% |
28.3% |
25.0% |
21.7% |
Earnings |
9.0% |
(1.2%) |
11.7% |
6.3% |
(1.1%) |
15.8% |
One Fool says:
While it's true that NetApp has a sharply defined product catalog and a tightly focused customer base with heavy exposure to the troubled financial-services sector, the same could be said of obvious winners like Cisco Systems
Digital video is starting to grow up, ensuring that great storage servers will be in high demand for the next few years. As you can tell from the growth trends we looked at 10 seconds ago, this company can keep the order volume up even in a troubled economy.
Despite this resilience, a skeptical Wall Street has dropped the stock's value by 31% over the last year. Expect a good report that will turn some heads, right here.
Further Foolery: