18.2 USD
+0.14 (+0.78%)
18.2 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EXTR. EXTR was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year EXTR was profitable.
In the past year EXTR had a positive cash flow from operations.
In multiple years EXTR reported negative net income over the last 5 years.
EXTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.75%, EXTR perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
EXTR's Return On Equity of 12.61% is fine compared to the rest of the industry. EXTR outperforms 79.17% of its industry peers.
EXTR has a Return On Invested Capital of 4.61%. This is in the better half of the industry: EXTR outperforms 66.67% of its industry peers.
| 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 56.25% of the companies in the same industry.
EXTR's Operating Margin of 2.84% is in line compared to the rest of the industry. EXTR outperforms 52.08% of its industry peers.
EXTR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 61.61%, EXTR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
EXTR's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EXTR is destroying value.
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
EXTR has an Altman-Z score of 1.26. 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 (1.26) which is in line with its industry peers.
EXTR has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as EXTR would need 2.10 years to pay back of all of its debts.
EXTR's Debt to FCF ratio of 2.10 is fine compared to the rest 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.
Although EXTR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.49
WACC9.48%
2.3 Liquidity
EXTR has a Current Ratio of 0.91. This is a bad value and indicates that EXTR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of EXTR (0.91) is worse than 93.75% of its industry peers.
EXTR has a Quick Ratio of 0.91. This is a bad value and indicates that EXTR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.75, EXTR is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| 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.
Measured over the past years, EXTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.06% on average per year.
The Revenue has grown by 14.31% in the past year. This is quite good.
EXTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
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
EXTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.93% yearly.
EXTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.02% yearly.
EPS Next Y21.12%
EPS Next 2Y23.69%
EPS Next 3Y19.77%
EPS Next 5Y21.93%
Revenue Next Year10.9%
Revenue Next 2Y9.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.45, the valuation of EXTR can be described as rather expensive.
Based on the Price/Earnings ratio, EXTR is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. EXTR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.16, the valuation of EXTR can be described as correct.
EXTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. EXTR is cheaper than 83.33% of the companies in the same industry.
EXTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
EXTR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXTR indicates a somewhat cheap valuation: EXTR is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.67 | ||
| EV/EBITDA | 45.69 |
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 19.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.39
EPS Next 2Y23.69%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
No dividends for EXTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.2
+0.14 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.42%
Inst Owner Change1.98%
Ins Owners3.2%
Ins Owner Change6.3%
Market Cap2.43B
Revenue(TTM)1.18B
Net Income(TTM)8.65M
Analysts82.86
Price Target24.74 (35.93%)
Short Float %7.07%
Short Ratio5
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)1.75%
PT rev (3m)1.75%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.45 | ||
| Fwd PE | 14.16 | ||
| P/S | 2.06 | ||
| P/FCF | 25.67 | ||
| P/OCF | 20.37 | ||
| P/B | 35.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.69 |
EPS(TTM)0.89
EY4.89%
EPS(NY)1.29
Fwd EY7.06%
FCF(TTM)0.71
FCFY3.9%
OCF(TTM)0.89
OCFY4.91%
SpS8.83
BVpS0.51
TBVpS-2.52
PEG (NY)0.97
PEG (5Y)0.39
Graham Number3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 12.61% | ||
| ROCE | 5.83% | ||
| ROIC | 4.61% | ||
| ROICexc | 7.28% | ||
| 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 | 1.26 |
F-Score9
WACC9.48%
ROIC/WACC0.49
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 Y21.12%
EPS Next 2Y23.69%
EPS Next 3Y19.77%
EPS Next 5Y21.93%
Revenue 1Y (TTM)14.31%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%15.25%
Revenue Next Year10.9%
Revenue Next 2Y9.1%
Revenue Next 3Y8.29%
Revenue Next 5Y9.02%
EBIT growth 1Y147.29%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year28.52%
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 21.12% in the next year.