EXTREME NETWORKS INC (EXTR) Stock Fundamental Analysis
USA - NASDAQ:EXTR - US30226D1063 - Common Stock
17.675 USD
-0.59 (-3.26%)
EXTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of EXTR while its profitability can be described as average. EXTR is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year EXTR was profitable.
EXTR had a positive operating cash flow in the past year.
In multiple years EXTR reported negative net income over the last 5 years.
Each year in the past 5 years EXTR had a positive operating cash flow.
1.2 Ratios
EXTR has a Return On Assets (0.75%) which is in line with its industry peers.
EXTR has a better Return On Equity (12.61%) than 79.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.61%, EXTR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 12.61% | ||
| ROIC | 4.61% |
ROA(3y)-0.68%
ROA(5y)0.46%
ROE(3y)-94.85%
ROE(5y)-46.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.73%, EXTR perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
With a Operating Margin value of 2.84%, EXTR perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Operating Margin of EXTR has declined.
EXTR has a Gross Margin of 61.61%. This is amongst the best in the industry. EXTR outperforms 81.25% of its industry peers.
In the last couple of years the Gross Margin of EXTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.84% | ||
| PM (TTM) | 0.73% | ||
| GM | 61.61% |
OM growth 3Y-37.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.18%
GM growth 5Y2.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EXTR is destroying value.
Compared to 1 year ago, EXTR has more shares outstanding
The number of shares outstanding for EXTR has been increased compared to 5 years ago.
Compared to 1 year ago, EXTR has an improved debt to assets ratio.
2.2 Solvency
EXTR has an Altman-Z score of 1.27. This is a bad value and indicates that EXTR is not financially healthy and even has some risk of bankruptcy.
EXTR has a Altman-Z score (1.27) which is in line with its industry peers.
The Debt to FCF ratio of EXTR is 2.10, which is a good value as it means it would take EXTR, 2.10 years of fcf income to pay off all of its debts.
EXTR has a Debt to FCF ratio of 2.10. This is in the better half of the industry: EXTR outperforms 64.58% of its industry peers.
A Debt/Equity ratio of 2.32 is on the high side and indicates that EXTR has dependencies on debt financing.
With a Debt to Equity ratio value of 2.32, EXTR is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for EXTR, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.5
WACC9.28%
2.3 Liquidity
A Current Ratio of 0.91 indicates that EXTR may have some problems paying its short term obligations.
EXTR has a Current ratio of 0.91. This is amonst the worse of the industry: EXTR underperforms 91.67% of its industry peers.
A Quick Ratio of 0.75 indicates that EXTR may have some problems paying its short term obligations.
EXTR's Quick ratio of 0.75 is on the low side compared to the rest of the industry. EXTR is outperformed by 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
EXTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 535.71%, which is quite impressive.
EXTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 53.06% yearly.
The Revenue has grown by 14.31% in the past year. This is quite good.
Measured over the past years, EXTR shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
EPS 1Y (TTM)535.71%
EPS 3Y2.5%
EPS 5Y53.06%
EPS Q2Q%29.41%
Revenue 1Y (TTM)14.31%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%15.25%
3.2 Future
Based on estimates for the next years, EXTR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.93% on average per year.
Based on estimates for the next years, EXTR will show a quite strong growth in Revenue. The Revenue will grow by 9.02% on average per year.
EPS Next Y20.56%
EPS Next 2Y23.44%
EPS Next 3Y19.73%
EPS Next 5Y21.93%
Revenue Next Year10.81%
Revenue Next 2Y9.02%
Revenue Next 3Y8.29%
Revenue Next 5Y9.02%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EXTR is valuated rather expensively with a Price/Earnings ratio of 19.86.
EXTR's Price/Earnings ratio is a bit cheaper when compared to the industry. EXTR is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. EXTR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.81, the valuation of EXTR can be described as correct.
Based on the Price/Forward Earnings ratio, EXTR is valued cheaper than 83.33% of the companies in the same industry.
EXTR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
EXTR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EXTR is valued a bit cheaper than 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.92 | ||
| EV/EBITDA | 46.24 |
4.3 Compensation for Growth
EXTR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EXTR's earnings are expected to grow with 19.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.37
EPS Next 2Y23.44%
EPS Next 3Y19.73%
5. Dividend
5.1 Amount
EXTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:EXTR (11/13/2025, 11:10:37 AM)
17.675
-0.59 (-3.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.34%
Inst Owner Change-0.9%
Ins Owners3.25%
Ins Owner Change6.36%
Market Cap2.36B
Revenue(TTM)1.18B
Net Income(TTM)8.65M
Analysts81.54
Price Target24.31 (37.54%)
Short Float %6.82%
Short Ratio5.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.66%
Min EPS beat(2)0.38%
Max EPS beat(2)8.93%
EPS beat(4)4
Avg EPS beat(4)8.99%
Min EPS beat(4)0.38%
Max EPS beat(4)14.74%
EPS beat(8)5
Avg EPS beat(8)-12.09%
EPS beat(12)9
Avg EPS beat(12)-5.28%
EPS beat(16)13
Avg EPS beat(16)-0.87%
Revenue beat(2)2
Avg Revenue beat(2)1.61%
Min Revenue beat(2)0.37%
Max Revenue beat(2)2.85%
Revenue beat(4)2
Avg Revenue beat(4)0.31%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)2.85%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)7
Avg Revenue beat(12)0.79%
Revenue beat(16)10
Avg Revenue beat(16)0.94%
PT rev (1m)0%
PT rev (3m)24.89%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)2.48%
Revenue NQ rev (3m)3.47%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.86 | ||
| Fwd PE | 13.81 | ||
| P/S | 2 | ||
| P/FCF | 24.92 | ||
| P/OCF | 19.78 | ||
| P/B | 34.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.24 |
EPS(TTM)0.89
EY5.04%
EPS(NY)1.28
Fwd EY7.24%
FCF(TTM)0.71
FCFY4.01%
OCF(TTM)0.89
OCFY5.06%
SpS8.84
BVpS0.51
TBVpS-2.52
PEG (NY)0.97
PEG (5Y)0.37
Graham Number3.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 12.61% | ||
| ROCE | 5.83% | ||
| ROIC | 4.61% | ||
| ROICexc | 7.23% | ||
| ROICexgc | N/A | ||
| OM | 2.84% | ||
| PM (TTM) | 0.73% | ||
| GM | 61.61% | ||
| FCFM | 8.03% |
ROA(3y)-0.68%
ROA(5y)0.46%
ROE(3y)-94.85%
ROE(5y)-46.4%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-33.94%
ROICexc growth 5YN/A
OM growth 3Y-37.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.18%
GM growth 5Y2.63%
F-Score9
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 129.4% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 227.1% | ||
| Profit Quality | 1096.16% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.27 |
F-Score9
WACC9.28%
ROIC/WACC0.5
Cap/Depr(3y)76.56%
Cap/Depr(5y)59.82%
Cap/Sales(3y)1.61%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)535.71%
EPS 3Y2.5%
EPS 5Y53.06%
EPS Q2Q%29.41%
EPS Next Y20.56%
EPS Next 2Y23.44%
EPS Next 3Y19.73%
EPS Next 5Y21.93%
Revenue 1Y (TTM)14.31%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%15.25%
Revenue Next Year10.81%
Revenue Next 2Y9.02%
Revenue Next 3Y8.29%
Revenue Next 5Y9.02%
EBIT growth 1Y147.29%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year28.77%
EBIT Next 3Y20.19%
EBIT Next 5Y16.01%
FCF growth 1Y-63.55%
FCF growth 3Y4.12%
FCF growth 5Y43.95%
OCF growth 1Y-56.58%
OCF growth 3Y5.85%
OCF growth 5Y33.47%
EXTREME NETWORKS INC / EXTR FAQ
What is the fundamental rating for EXTR stock?
ChartMill assigns a fundamental rating of 5 / 10 to EXTR.
What is the valuation status for EXTR stock?
ChartMill assigns a valuation rating of 5 / 10 to EXTREME NETWORKS INC (EXTR). This can be considered as Fairly Valued.
What is the profitability of EXTR stock?
EXTREME NETWORKS INC (EXTR) has a profitability rating of 5 / 10.
What is the expected EPS growth for EXTREME NETWORKS INC (EXTR) stock?
The Earnings per Share (EPS) of EXTREME NETWORKS INC (EXTR) is expected to grow by 20.56% in the next year.