$NetScout Systems (NTCT.US)$In the inventory in the autumn o...

Listed in 1999, mainly engaged in cybersecurity business for enterprises and governments, with 64% of the market in the USA. The current price is 20.96.

In the past 5 years, the revenue declined in the first 3 years and grew in the past 2 years, with a slight overall shrinkage. The operating profit has been growing for 4 consecutive years since turning losses in 2020, with an average growth rate of 58% in the past 3 years. The net income, on the other hand, turned losses in 2021 and has been growing rapidly recently, with a growth rate of 66.3% expected in 2023.

The revenue shrank by 11.4% in the first 3 quarters of 2024, and the operating profit shrank by 35.2%. The net income suffered a loss of 0.12 billion due to the impairment of 0.16 billion in capital assets. It is highly likely that it was impacted by goodwill impairment. In 2023 Q3, goodwill decreased from 2.058 billion to 1.875 billion, still accounting for 98.5% of the net assets of 1.904 billion. There is still significant impairment pressure in the future.

The current PE ratio is 25.6, and the TTM PE ratio is at a loss. Considering the lack of revenue growth and the pressure of goodwill impairment, it is currently not attractive.