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NetApp Owner Earnings per Share (TTM)

: 5.50 (As of Oct. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

NetApp's Owner Earnings per Share (TTM) ended in Oct. 2021 was $5.50. It's Price-to-Owner-Earnings ratio for today is 15.32.


The historical rank and industry rank for NetApp's Owner Earnings per Share (TTM) or its related term are showing as below:

NAS:NTAP' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 9.4   Med: 15.55   Max: 23.6
Current: 15.31

9.4
23.6

During the past 13 years, the highest Price-to-Owner-Earnings ratio of NetApp was 23.60. The lowest was 9.40. And the median was 15.55.


NAS:NTAP's Price-to-Owner-Earnings is ranked higher than
65% of the 1117 Companies
in the Hardware industry.

( Industry Median: 24.89 vs. NAS:NTAP: 15.31 )

NetApp's Earnings per Share (Diluted) for the three months ended in Oct. 2021 was $0.98. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Oct. 2021 was $4.12. It's PE Ratio ratio for today is 20.46.

NetApp's EPS without NRI for the three months ended in Oct. 2021 was $0.98. Its EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2021 was $4.12. It's PE Ratio without NRI ratio for today is 20.46.


NetApp Owner Earnings per Share (TTM) Historical Data

The historical data trend for NetApp's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

NetApp Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.26 3.84 4.50 3.41 4.78

NetApp Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.60 3.28 4.78 4.87 5.50

Competitive Comparison

For the Computer Hardware subindustry, NetApp's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

NetApp Owner Earnings per Share (TTM) Distribution

For the Hardware industry and Technology sector, NetApp's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where NetApp's Owner Earnings per Share (TTM) falls into.



NetApp Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

NetApp's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 942
Depreciation, Depletion and Amortization 194
Change In Deferred Tax -32
5Y Average of Maintenance Capital Expenditure 127
Change In Working Capital 283
Shares Outstanding (Diluted Average) 229

1. Start with "Net Income" from income statement. NetApp's Net Income for the trailing twelve months (TTM) ended in Oct. 2021 was $942 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. NetApp's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Oct. 2021 was $194 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. NetApp's Change In Deferred Tax for the trailing twelve months (TTM) ended in Oct. 2021 was $-32 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $127 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

NetApp's 5-Year Average Maintenance Capital Expenditure = $127 Mil

5. "Change In Working Capital" is from cashflow statement. NetApp's Change In Working Capital for the trailing twelve months (TTM) ended in Oct. 2021 was $283 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. NetApp's Shares Outstanding (Diluted Average) for the months ended in Oct. 2021 was 229.000 Mil.

NetApp's Onwer Earnings Per Share for Oct. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 942 +194+-32
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-126.59997851348+283)/229.000
=5.50

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=84.28/5.50
=15.32

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


NetApp Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of NetApp's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


NetApp Business Description

NetApp logo
Industry
Technology » Hardware NAICS : 334112 SIC : 3572
Traded in Other Exchanges
Address
1395 Crossman Avenue, Sunnyvale, CA, USA, 94089
NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance. NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.
Executives
Allen Scott R. officer: SVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Anderson Brad officer: EVP, SSSBU and CIBU ONE DELL WAY ROUND ROCK TX 78682
Hill Kathryn director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Ahuja Deepak director C/O TESLA MOTORS, INC. 3500 DEER CREEK ROAD PALO ALTO CA 94304
Schenkel Scott F. director C/O EBAY INC. 2025 HAMILTON AVE. SAN JOSE CA 95125
Kerr Deborah director 901 MARQUETTE AVENUE SUITE 3200 MINNEAPOLIS MN 55402
Nevens Thomas Michael director C/O BORLAND SOFTWARE CORPORATION 20450 STEVENS CREEK BLVD, SUITE 800 CUPERTINO CA 95014
Shaheen George T director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SHAHEEN GEORGE T a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Held Gerald director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HELD GERALD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Cernuda Cesar officer: President 1395 CROSSMAN AVENUE SUNNYVALE CA 94089
Berry Michael J officer: EVP Finance & Operations, CFO C/O INFORMATICA CORPORATION 2100 SEAPORT BOULEVARD REDWOOD CITY CA 94063
Fawcett Matthew K officer: SVP, GC & Secretary 495 EAST JAVA DRIVE SUNNYVALE CA 94089
Kurian George director, officer: CEO C/O NETAPP 495 E. JAVA DRIVE SUNNYVALE CA 94089
Pasek Ronald J officer: EVP Finance & Operations, CFO 101 INNOVATION DRIVE SAN JOSE CA 95134
Richard Henri P officer: EVP, Go To Market FREESCALE SEMICONDUCTOR, INC. 2680 ZANKER RD, SUITE 200 SAN JOSE CA 95134

NetApp Headlines

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