EXTREME NETWORKS INC (EXTR) Stock Fundamental Analysis
NASDAQ:EXTR - Nasdaq - US30226D1063 - Common Stock - Currency: USD
Taking everything into account, EXTR scores 3 out of 10 in our fundamental rating. EXTR was compared to 49 industry peers in the Communications Equipment industry. Both the profitability and financial health of EXTR have multiple concerns. EXTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EXTR had positive earnings in the past year.
EXTR had a positive operating cash flow in the past year.
In multiple years EXTR reported negative net income over the last 5 years.
In the past 5 years EXTR always reported a positive cash flow from operatings.
1.2 Ratios
EXTR has a Return On Assets (-5.02%) which is in line with its industry peers.
With a Return On Equity value of -75.12%, EXTR is not doing good in the industry: 75.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.02% | ||
| ROE | -75.12% | ||
| ROIC | N/A |
ROA(3y)0.91%
ROA(5y)-2%
ROE(3y)-74.7%
ROE(5y)-513.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EXTR has a better Gross Margin (58.24%) than 79.59% of its industry peers.
EXTR's Gross Margin has been stable in the last couple of years.
EXTR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 58.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.87%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
EXTR does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for EXTR has been increased compared to 1 year ago.
EXTR has more shares outstanding than it did 5 years ago.
EXTR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that EXTR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.95, EXTR is in line with its industry, outperforming 53.06% of the companies in the same industry.
The Debt to FCF ratio of EXTR is 2.86, which is a good value as it means it would take EXTR, 2.86 years of fcf income to pay off all of its debts.
EXTR's Debt to FCF ratio of 2.86 is in line compared to the rest of the industry. EXTR outperforms 53.06% of its industry peers.
EXTR has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.33, EXTR is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 2.86 | ||
| Altman-Z | 0.95 |
ROIC/WACCN/A
WACC10.22%
2.3 Liquidity
EXTR has a Current Ratio of 0.93. This is a bad value and indicates that EXTR is not financially healthy enough and could expect problems in meeting its short term obligations.
EXTR's Current ratio of 0.93 is on the low side compared to the rest of the industry. EXTR is outperformed by 91.84% of its industry peers.
A Quick Ratio of 0.70 indicates that EXTR may have some problems paying its short term obligations.
EXTR has a Quick ratio of 0.70. This is amonst the worse of the industry: EXTR underperforms 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for EXTR have decreased strongly by -30.14% in the last year.
Measured over the past years, EXTR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.78% on average per year.
EXTR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.00%.
EXTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)-30.14%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%210.53%
Revenue 1Y (TTM)-11%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%34.81%
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 56.97% on average per year.
The Revenue is expected to grow by 5.82% on average over the next years.
EPS Next Y160.01%
EPS Next 2Y77.64%
EPS Next 3Y56.97%
EPS Next 5YN/A
Revenue Next Year1.76%
Revenue Next 2Y4.73%
Revenue Next 3Y5.82%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 31.06, EXTR can be considered very expensive at the moment.
Based on the Price/Earnings ratio, EXTR is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
EXTR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
EXTR is valuated correctly with a Price/Forward Earnings ratio of 15.69.
Based on the Price/Forward Earnings ratio, EXTR is valued a bit cheaper than 67.35% of the companies in the same industry.
EXTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 15.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXTR is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as EXTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.37 | ||
| EV/EBITDA | 286.23 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EXTR's earnings are expected to grow with 56.97% in the coming years.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y77.64%
EPS Next 3Y56.97%
5. Dividend
5.1 Amount
No dividends for EXTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.84
-0.06 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners92.7%
Inst Owner Change6.03%
Ins Owners2.91%
Ins Owner Change1.09%
Market Cap2.10B
Analysts76.92
Price Target19.13 (20.77%)
Short Float %4.24%
Short Ratio3.72
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)13.32%
Min EPS beat(2)11.89%
Max EPS beat(2)14.74%
EPS beat(4)3
Avg EPS beat(4)-24.38%
Min EPS beat(4)-162.25%
Max EPS beat(4)38.07%
EPS beat(8)5
Avg EPS beat(8)-11.87%
EPS beat(12)9
Avg EPS beat(12)-4.67%
EPS beat(16)13
Avg EPS beat(16)0.91%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)1.3%
Revenue beat(8)3
Avg Revenue beat(8)0.21%
Revenue beat(12)7
Avg Revenue beat(12)0.9%
Revenue beat(16)10
Avg Revenue beat(16)1.08%
PT rev (1m)-5.46%
PT rev (3m)-3.02%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)3.59%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 15.69 | ||
| P/S | 1.93 | ||
| P/FCF | 33.37 | ||
| P/OCF | 24.57 | ||
| P/B | 29.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 286.23 |
EPS(TTM)0.51
EY3.22%
EPS(NY)1.01
Fwd EY6.38%
FCF(TTM)0.47
FCFY3%
OCF(TTM)0.64
OCFY4.07%
SpS8.21
BVpS0.54
TBVpS-2.49
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.02% | ||
| ROE | -75.12% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 58.24% | ||
| FCFM | 5.78% |
ROA(3y)0.91%
ROA(5y)-2%
ROE(3y)-74.7%
ROE(5y)-513.75%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.87%
GM growth 5Y0.4%
F-Score4
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 2.86 | ||
| Debt/EBITDA | 22.89 | ||
| Cap/Depr | 86.58% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1171.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 0.95 |
F-Score4
WACC10.22%
ROIC/WACCN/A
Cap/Depr(3y)46.49%
Cap/Depr(5y)38.9%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.14%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%210.53%
EPS Next Y160.01%
EPS Next 2Y77.64%
EPS Next 3Y56.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-11%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%34.81%
Revenue Next Year1.76%
Revenue Next 2Y4.73%
Revenue Next 3Y5.82%
Revenue Next 5YN/A
EBIT growth 1Y-138.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year60.54%
EBIT Next 3Y31.16%
EBIT Next 5YN/A
FCF growth 1Y-71.31%
FCF growth 3Y-33.54%
FCF growth 5Y-14.59%
OCF growth 1Y-63.21%
OCF growth 3Y-27.32%
OCF growth 5Y-11.96%