$NetScout Systems (NTCT.US)$Excluded from the fall 2022 inve...

Launched in 1999, it is mainly a cybersecurity business for enterprises and governments. 64% of the market is in the US, and the current price is 20.96.

In the past 5 years, revenue declined in the first 3 years and shrank slightly in the past 2 years. Operating profit grew continuously for 4 years after reversing losses in 2020 due to continuous optimization of the share of expenses. The average growth rate for the past 3 years was 58%. Net profit was affected by interest expenses and only reversed losses in 2021. Recently, it has grown rapidly, reaching 66.3% in 2023.

In the first three quarters of 2024, revenue shrank by 11.4%, operating profit shrank by 35.2%, and net profit lost 120 million dollars due to the impairment of 160 million capital assets. It is likely due to impairment of goodwill. Goodwill fell from $2,058 million to $183 billion to $1,875 million in Q3 in 2023Q3. Currently, it still accounts for 98.5% of the 1.904 billion net assets, and there is still a lot of depreciation pressure in the future.

Currently, the price-earnings ratio is 25.6, and the price-earnings ratio TTM loss is temporarily unattractive considering the lack of revenue growth and pressure to depreciate goodwill.