NetApp, Inc. (NTAP)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and can reinvest at decent rates, and NetApp is an interesting case. It sells storage software and systems—ONTAP, SnapMirror, SnapCenter and related cloud data services—to enterprises, and that kind of infrastructure tends to be sticky once installed. The filed numbers show real progress: in fiscal year 2024, the year ended 2024-04-26, revenue was $6.3B, net income $986.0M, and diluted EPS $4.63; by fiscal year 2026, the year ended 2026-04-24, revenue reached $6.9B, net income $1.3B, and diluted EPS $6.35. In fiscal Q1 2027, the quarter ended 2026-07-31, revenue was $2.0B and net income $375.0M, or $1.88 per diluted share, up from fiscal Q1 2026, the quarter ended 2025-07-25, when revenue was $1.6B, net income $233.0M, and diluted EPS $1.15. FairStock's Lynch category is Stalwart—steady growth, with 11.8% annual profit growth and 3.8% revenue growth over five years—so I would not mistake it for a start-up. Financial health is decent but leveraged: debt/equity is 1.69, while FairStock’s ROCE is 11.66%, Altman Z is 3.48, and Piotroski F-score is 6/9. The trouble is price. At the 2026-10-13 close of $239.01, FairStock calculates P/E 33.76, P/B 31.33, FCF yield 3.5%, and Graham Number $34.86, a -585.63% margin of safety. PEG 0.55 looks reasonable, but Graham would demand a much larger discount to intrinsic value. I see a good operating business, not a bargain.

In plain English: NetApp helps businesses store and manage data in their own data centers and in the cloud. Sales and profits have been rising, and the company produces steady cash. But the stock price is very high compared with those profits and what the company owns, so it looks expensive rather than cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-07-31) · fiscal Q3 2026 10-Q (period ended 2026-01-23) · fiscal Q2 2026 10-Q (period ended 2025-10-24) · fiscal Q1 2026 10-Q (period ended 2025-07-25) · FY2026 10-K (period ended 2026-04-24) · FY2025 10-K (period ended 2025-04-25) · FY2024 10-K (period ended 2024-04-26)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer