NetSol Technologies Inc (NTWK) stock analysis

NTWKNasdaqServices-Prepackaged SoftwareFiscal year ends June 30

Financials through Q1 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 12, 2026Score 15/3015% below fair value

$5.29−1.60 (-23.29%)

Close on Nov 12, 2026Market cap $63.17MP/E 11.5Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Solid15 of 30 checks passed

NetSol Technologies passes 15 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 4/6
Growth: 2/6
Past performance: 5/6
Financial health: 4/6
Dividend: 0/6

What stands out

Trading below fair value
The share price of $6.89 is below our fair value estimate of $8.14.
Return on capital over 10%
Return on invested capital was 24.6%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 0.9% of shareholders' equity, under the 40% we consider low.
Earnings grew over 5 years
Net income grew 10.7% a year on average over the last five fiscal years.

What to watch

Margin of safety under 20%
The price is 15.4% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 7.4% over the last twelve months and averaged 0.5% over five years; we look for 15% on both.
Earnings growth not accelerating
Net income grew 0.9% over the last twelve months, against a 5-year average of 10.7% a year.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.81; above 3 is the safe zone and below 1.8 the distress zone.

Valuation4/6

P/E below its 5-year median
NetSol Technologies's P/E of 27.6 is below its own 5-year median of 30.1.
P/E below the industry
NetSol Technologies's P/E of 27.6 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA above its 5-year median
NetSol Technologies's EV/EBITDA of 7.8 is above its 5-year median of 6.7.
P/B below the industry
NetSol Technologies's price-to-book of 1.98 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $6.89 is below our fair value estimate of $8.14.
Margin of safety under 20%
The price is 15.4% below fair value, less than the 20% cushion we look for.

Growth2/6

Revenue growing 10%+ a year
Revenue grew 14.3% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings growth not accelerating
Net income grew 0.9% over the last twelve months, against a 5-year average of 10.7% a year.
Growing slower than the industry
Revenue grew 6.9% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance issued
The latest outlook (fiscal 2027 total net revenue growth, Sep 29, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 50.1% over the last twelve months, against 44.6% a year earlier.

Past performance5/6

Return on equity under 15%
Return on equity was 7.4% over the last twelve months and averaged 0.5% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 24.6%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
NetSol Technologies's return on equity of 7.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings grew over 5 years
Net income grew 10.7% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 3.8% over the last twelve months, against a 5-year average of -0.5%.
Net margin above the industry
NetSol Technologies's net margin of 3.8% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Financial health4/6

Low debt
Debt is 0.9% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 2.1% five years ago to 0.9%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 3920% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 2.06 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.81; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
NetSol Technologies has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$8.14

The share price is 15% below this estimate.

20%+ below

Near fair value

20%+ above

$6.89Price$8.14Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	28.9×	30.1×	27.6×	$7.22	40%
EV/EBITDA	12.7×	6.7×	18.8×	$10.92	35%
P/B	2.1×	0.9×	3.3×	$7.26	10%
Earnings power	8.3% cost of equity	–	–	$4.71	15%
Fair value				$8.14	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Own 5-year median 30.1
Computer Programming, Data Processing, and Other Computer Related Services median 27.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day: $1.13M
Value traded per 1% price move: $92.46K

Downside

Low risk

Typical loss in a bad month: 12.1%
Volatility (annualized): 58%
Sharpe ratio, 1 year: 1.09
Beta to the S&P 500 (5Y): 0.69

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

50.1%+2.1 pts over 5 years

Operating margin

8.9%+3.9 pts over 5 years

Net margin

3.8%+0.5 pts over 5 years

Growth rates

Compound annual growth to fiscal 2026

Per year	1 year	3 years	5 years	10 years
Revenue	+6.9%	+14.3%	+7.3%	+1.9%
Gross profit	+20.2%	+32.3%	+8.2%	+2.4%
Operating income	+98.4%	–	+20.6%	+1.0%
Net income	+0.9%	–	+10.7%	-1.4%
EPS, diluted	0.0%	–	+10.8%	-2.4%
Free cash flow	–	+217.8%	-2.1%	–

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2017	FY2021	FY2026
Return on equity	-7.8%	3.1%	7.4%
Return on assets	-5.2%	2.0%	4.2%
Current ratio	2.10	2.37	2.06
Debt to equity	0.17	–	0.20
Net debt to EBITDA	-31.69×	–	-2.29×
Interest coverage	-3.2×	6.9×	–
Capex to revenue	3.4%	4.6%	2.6%
Diluted shares	11M	11M	12M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin3.8%

Asset turnover1.11×

Equity multiplier1.77×

Return on equity, FY20267.4%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2026	3.8%	1.11×	1.77×	7.4%
FY2025	4.0%	1.15×	1.74×	8.0%
FY2024	1.1%	1.05×	1.79×	2.0%
FY2023	-10.0%	0.80×	1.65×	-13.2%
FY2022	-1.5%	0.72×	1.59×	-1.7%
FY2021	3.2%	0.63×	1.54×	3.1%
FY2020	1.7%	0.64×	1.50×	1.6%
FY2019	12.7%	0.72×	1.55×	14.2%
FY2018	7.1%	0.61×	1.58×	6.8%
FY2017	-7.6%	0.68×	1.51×	-7.8%

Where these numbers come from

Parsed from the XBRL in NetSol Technologies's annual and quarterly filings with the SEC
Per-share figures adjusted for the 1-for-10 reverse split on Aug 13, 2012
Fourth quarters derived from the annual report minus nine months
Every figure in the statements links to its source filing