NTCT

Technology

NetScout Systems, Inc. · Software - Infrastructure · $3B

UQS Score — Balanced Preset
53.0
Good

NetScout Systems, Inc. scores 53.0/100 using the Balanced preset.

UQS vs Technology Sector
NTCT
53.0
Sector avg
38.0
Quality
Neutral
Moat
Weak
Growth
Neutral
Risk
Strong
Valuation
Attractive

What is NetScout Systems, Inc.?

NetScout Systems is a mid-cap technology company specializing in service assurance and cybersecurity. Headquartered in Westford, Massachusetts, it serves enterprises and service providers across the United States, Europe, Asia, and beyond.

NetScout generates revenue by selling software platforms, hardware probes, and cloud-based services that help organizations monitor network performance and defend against cyberattacks. Its service assurance tools allow customers to detect and resolve network disruptions before they affect end users, while its cybersecurity portfolio — marketed under the Arbor brand — protects networks from distributed denial-of-service attacks and advanced threats. The company sells to large enterprises, government agencies, and telecommunications providers worldwide.

NetScout was founded in 1999 and is headquartered in Westford, Massachusetts.

  • nGeniusONE network management and service assurance software
  • nGeniusPULSE active testing and application performance monitoring
  • Arbor DDoS protection and threat mitigation solutions
  • Omnis Cyber Investigation advanced threat detection platform
  • Packet flow systems and network test access points

Is NTCT a Good Stock to Buy?

UQS Score rates NTCT as Good overall, reflecting a balanced but nuanced profile across its five pillars.

NetScout's most notable strength lies in its Risk pillar, which rates Strong — suggesting the business carries relatively low financial or operational risk compared to sector peers. Its Valuation pillar is rated Attractive, meaning the stock does not appear richly priced relative to its fundamentals, which may interest value-oriented investors.

The Moat and Growth pillars both rate Weak, indicating limited competitive differentiation and below-average revenue expansion relative to the broader technology sector.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does NTCT pay dividends?

No — NetScout Systems, Inc. does not currently pay a dividend.

NetScout does not currently pay a dividend. For a technology company with Weak Growth scores, retained capital is typically directed toward product development, sales expansion, or potential acquisitions rather than shareholder distributions. Investors seeking income may need to look elsewhere, while those focused on capital reinvestment may find this approach consistent with the company's strategic priorities.

When does NTCT report earnings?

NetScout Systems reports earnings on a quarterly cadence, typical for US-listed equities.

Given the Weak Growth pillar rating, recent quarterly results have reflected below-sector-average revenue momentum. The Strong Risk pillar suggests the company has maintained financial stability even during softer growth periods, which can be a meaningful signal for longer-term holders.

For the most recent quarter's results and upcoming reporting dates, visit NetScout's investor relations page directly.

NTCT Price History

+13.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in NetScout Systems, Inc.?

$
Today it would be worth
$11,966
That's a +19.7% total return, or +3.7% annualized.

Based on NetScout Systems, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

NTCT Long-term Outlook

NetScout's fundamental outlook is shaped by its Strong Risk profile and Attractive Valuation, offset by Weak Growth and Moat ratings. The company operates in a competitive cybersecurity and network management market where differentiation is increasingly difficult. Near-term revenue expansion may remain constrained, though the low-risk financial profile provides a degree of resilience. A re-acceleration in enterprise IT spending or a meaningful product cycle in DDoS protection could shift the growth trajectory.

Growth drivers

  • Rising enterprise demand for DDoS protection and network visibility tools
  • Expansion of cloud-based service assurance offerings for telecom providers
  • Potential upsell into existing large enterprise and government customer base

Key risks

  • Intensifying competition in both cybersecurity and network management markets
  • Sustained weakness in organic revenue growth limiting long-term compounding
  • Execution risk in transitioning customers to newer cloud-based platforms

NTCT vs Peers

NetScout competes across network management and cybersecurity with several mid-market technology companies.

TDCSimilar UQS
Teradata Corporation

Teradata focuses on cloud data analytics and warehousing, competing with NetScout primarily in enterprise data infrastructure rather than network assurance.

TENBNTCT scores higher
Tenable Holdings, Inc.

Tenable specializes in vulnerability management and exposure analytics, overlapping with NetScout in the broader cybersecurity market.

CSGSNTCT scores higher
CSG Systems International, Inc.

CSG Systems targets revenue management and customer engagement for communications providers, sharing NetScout's telecom customer base but with a different product focus.

Frequently Asked Questions

What does NetScout Systems do?

NetScout Systems provides software and hardware solutions that help enterprises and service providers monitor network performance and defend against cyberattacks. Its two main areas are service assurance — ensuring networks run without disruption — and cybersecurity, primarily DDoS protection under the Arbor brand.

Does NTCT pay dividends?

NetScout does not currently pay a dividend. The company retains capital for reinvestment in its product portfolio and operations. Investors seeking regular income distributions would need to look at dividend-paying alternatives in the technology sector.

When does NTCT report earnings?

NetScout reports financial results on a quarterly basis, consistent with US-listed public companies. For exact reporting dates and recent earnings releases, check the investor relations section of NetScout's official website.

Is NTCT a good stock to buy?

UQS Score rates NTCT as Good overall. The Strong Risk and Attractive Valuation pillars are positives, but the Weak Moat and Weak Growth ratings indicate meaningful challenges. Whether it suits your portfolio depends on your investment goals and risk tolerance. The full pillar breakdown is available to Pro members.

Is NTCT overvalued?

The UQS Valuation pillar for NTCT is rated Attractive, suggesting the stock is not trading at a premium relative to its fundamentals. This does not guarantee price appreciation, but it does indicate the market is not pricing in aggressive growth expectations at current levels.

How does NTCT compare to its competitors?

NetScout competes with companies like Tenable Holdings in cybersecurity and CSG Systems in the telecom software space. Each competitor has a distinct product focus. NetScout's combination of network assurance and DDoS protection under one platform differentiates it, though its Weak Moat rating suggests this advantage is not yet strongly entrenched.

What is NTCT's market cap bracket?

NetScout Systems is classified as a mid-cap company. This places it in a segment of the market that typically offers more growth potential than large-caps but with greater volatility than mega-cap technology peers.

Who founded NetScout Systems?

NetScout Systems was founded in 1999. For detailed founding history and leadership background, the company's official about page and public filings provide accurate and comprehensive information.

Is NTCT a long-term quality investment?

From a long-term quality perspective, NTCT's Strong Risk pillar is encouraging, as financial stability matters over extended holding periods. However, the Weak Growth and Weak Moat ratings suggest the company would need to demonstrate improved competitive positioning and revenue momentum to score highly as a long-term compounder.

What is the main competitive advantage of NetScout Systems?

NetScout's primary differentiation comes from combining network performance management with DDoS cybersecurity in a single vendor relationship. Its deep packet inspection technology and established relationships with large telecom providers create some switching costs, though the UQS Moat pillar currently rates this advantage as Weak relative to sector peers.

What sector does NTCT belong to?

NetScout Systems operates in the Technology sector, specifically within network management software and cybersecurity. It serves enterprise, government, and telecommunications customers, placing it at the intersection of IT infrastructure and security — two of the most active areas of enterprise spending.

Is NTCT a growth stock or value stock?

Based on its UQS pillar profile, NTCT leans toward value rather than growth. The Valuation pillar is rated Attractive while the Growth pillar is rated Weak, suggesting the stock may appeal more to investors looking for reasonably priced stability than those seeking high-growth technology exposure.

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Pro Analysis

NTCT — Score History

45505560Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 9 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202653.040.134.041.089.085.9+1.8
May 7, 202651.241.434.028.389.887.9-0.1
May 3, 202651.341.434.028.389.889.2-0.1
Apr 19, 202651.441.434.028.389.889.7-0.1
Apr 18, 202651.541.434.028.389.890.5-0.1
Apr 14, 202651.641.434.028.389.890.8-0.1
Apr 12, 202651.741.434.028.389.891.3+0.1
Apr 5, 202651.641.434.028.389.891.20.0
Apr 2, 202651.641.434.028.389.891.1

NTCT — Pillar Breakdown

Quality

40.2/100 (25%)

NetScout Systems, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

41.0/100 (20%)

NetScout Systems, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

89.0/100 (15%)

NetScout Systems, Inc. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

86.0/100 (15%)

NetScout Systems, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

34/100 (25%)

NetScout Systems, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for NTCT.

Score Composition

Quality
40.2×25%10.1
Growth
41.0×20%8.2
Risk
89.0×15%13.3
Valuation
86.0×15%12.9
Moat
34.0×25%8.5
Total
53.0Good

Financial Data

More Stock Analysis

How is the NTCT UQS Score Calculated?

The UQS (Unified Quality Score) for NetScout Systems, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses NetScout Systems, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether NetScout Systems, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.