NetSol Technologies Inc. Common Stock (NTWK)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

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

I look for businesses that earn consistent cash and sell at a discount to conservative value. NetSol is a specialized enterprise-software provider for auto finance, leasing, and banking. Its switching costs can be real once systems are installed, but at 1,370 employees it lacks the scale and pricing power of larger peers. In fiscal year 2026, the year ended 2026-06-30, revenue was $74.4M, net income $3.0M, and diluted EPS $0.25; fiscal year 2025 had revenue $66.1M, net income $2.9M, and diluted EPS $0.25. Sales rose, but profit barely moved. The quarterly path is volatile: fiscal Q1 2026, period ended 2025-09-30, lost $2.4M; fiscal Q2 2026, period ended 2025-12-31, earned $246,757; fiscal Q3 2026, period ended 2026-03-31, earned $1.3M. FairStock's TURNAROUND label fits because it returned to profit after a loss within the last three years. The balance sheet is not stretched—D/E is 0.21—but trailing free cash flow is -$3.2M, a -4.6% FCF yield. At the 2026-10-13 close of $5.95, FairStock calculates a P/E of 39.67, P/B of 1.89, EV/EBITDA of 7.31, ROE of 11.46%, ROCE of 5.44%, Graham Number of $3.26, Piotroski 4/9, and Altman Z 1.56. The Graham Number implies a negative 82.52% margin of safety. PEG is 0.33 per FairStock, but negative cash flow and a low Altman score keep me cautious. This looks like a speculative turnaround, not a margin-of-safety bargain.

In plain English: NetSol makes software for auto financing, leasing and banking companies. Sales are growing and it has returned to profit, but it still uses more cash than it brings in and profits are thin for a company its size. Based on the current price compared with those profits and assets, the stock 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 Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

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