NetSol Technologies (NTWK) Stock Analysis & Winston Score

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry. Its NFS Ascent constituent applications include Omni Point of Sale, a web-based application; Contract Management System (CMS), an application for managing and maintaining credit contracts; Wholesale Finan

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-8.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$1M/ year

↓ Declining (-9% vs prior year)

1.9% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

20.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~2 years

$15M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Adequate runway but may need to raise capital within 2 years

Growth context

NetSol Technologies is growing revenue at 13% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.7% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 11.5M (2021) → 11.6M (2025)

Score breakdown

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Quality

Gross Margin

55.6%

Premium pricing power — 55.6% gross margin

Operating Margin

15.2%

Healthy — 15.2% operating margin

ROCE

6.5%

Weak — 6.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+19.4%

Fast-growing sales (19.4% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

-108%

Weak — only -108% of profit becomes cash

FCF Margin

-10.3%

Burning cash (-10.3%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.25

Conservative — low debt load (0.25)

Interest Cover

12.85x

Comfortably covers interest (12.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

9.4x

Attractive valuation — P/E 9.4

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-3.0

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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