NortonLifeLock Inc. (NASDAQ: NLOK) stock price rose just 20% from $19 in 2018 end, to around $23 currently, primarily due to slight favorable changes in its P/S multiple and revenues. The company witnessed a steady rise in revenue per share over this period, helped by a drop in the outstanding share count. Despite this, the stock has failed to outperform the S&P, which has risen around 55% in comparison over this period.
In our interactive dashboard, Why NortonLifeLock Stock Moved: NLOK Stock Has Gained 20% Since 2018, we break down the factors behind this move.
(A) NortonLifeLock’s Total Revenue has grown 14% from $2.46 billion in FY 2019 to $2.8 billion currently
- NLOK’s total revenue has risen strongly from $2.46 billion in FY ’19 to $2.8 billion in FY ’22 (NLOK’s fiscal year ends in March), and currently stands at around the same level.
- As of FY ’22, around 60% of NLOK’s sales come from its consumer security segment, which brought in $1.67 billion in FY ’22
- Identity and Information protection sales make up the remaining 40%, standing at $1.13 billion in FY ’22.
- For details about NortonLifeLock revenues and comparison to peers, see NortonLifeLock (NLOK) Revenue Comparison
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(B) Revenue per share (RPS) increased 24% from $3.96 in FY ’19 to $4.89 currently
- NLOK revenue rose from $2.46 billion in FY ’19 to $2.8 billion currently, while the outstanding share count decreased from 620 million in FY ’19 to 571.4 million currently.
- Due to this, RPS has risen from $3.96 in FY ’19 to $4.89 currently.
(C) Price-To-Sales (P/S) multiple for NortonLifeLock rose from 4.5x in 2018-end to almost 6x by 2021 end, but has pulled back to 4.6x currently, still marginally higher than its 2018 level
- Due to NLOK’s steady performance since 2018-end, its P/S multiple rose strongly from 4.5x in 2018-end to as high as 6x by late 2021.
- However, due to the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 4.6x.
- For additional details about the company’s EBITDA and comparison to peers, see NortonLifeLock (NLOK) EBITDA Comparison.
With inflation rising and the Fed raising interest rates, NortonLifeLock has fallen 29% this year. Can it drop more? See how low can NLOK stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
|S&P 500 Return||-6%||-18%||74%|
|Trefis Multi-Strategy Portfolio||-3%||-22%||207%|
 Month-to-date and year-to-date as of 6/28/2022
 Cumulative total returns since the end of 2016