EXTREME NETWORKS INC (EXTR) Stock Fundamental Analysis
USA - NASDAQ:EXTR - US30226D1063 - Common Stock
17.855 USD
+0.43 (+2.5%)
EXTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. EXTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. EXTR is growing strongly while it is still valued neutral. This is a good combination!
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.
The reported net income has been mixed in the past 5 years: EXTR reported negative net income in multiple years.
In the past 5 years EXTR always reported a positive cash flow from operatings.
1.2 Ratios
EXTR's Return On Assets of 0.75% is in line compared to the rest of the industry. EXTR outperforms 56.25% of its industry peers.
EXTR has a better Return On Equity (12.61%) than 77.08% of its industry peers.
The Return On Invested Capital of EXTR (4.61%) is better than 70.83% 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
EXTR has a Profit Margin (0.73%) which is comparable to the rest of the industry.
EXTR has a Operating Margin (2.84%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EXTR has declined.
With an excellent Gross Margin value of 61.61%, EXTR belongs to the best 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
EXTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EXTR has more shares outstanding than it did 1 year ago.
EXTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EXTR has been reduced compared to a year ago.
2.2 Solvency
EXTR has an Altman-Z score of 1.21. This is a bad value and indicates that EXTR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.21, EXTR is in line with its industry, outperforming 50.00% of the companies in the same industry.
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.
The Debt to Equity ratio of EXTR (2.32) is worse than 89.58% of its industry peers.
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 | 1.21 |
ROIC/WACC0.5
WACC9.27%
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 91.67% of its industry peers.
A Quick Ratio of 0.75 indicates that EXTR may have some problems paying its short term obligations.
The Quick ratio of EXTR (0.75) is worse than 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.
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
The Earnings Per Share is expected to grow by 21.93% on average over the next years. This is a very strong growth
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 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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 20.06, EXTR is valued on the expensive side.
Based on the Price/Earnings ratio, EXTR is valued a bit cheaper than 68.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of EXTR to the average of the S&P500 Index (26.06), we can say EXTR is valued slightly cheaper.
EXTR is valuated correctly with a Price/Forward Earnings ratio of 13.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXTR indicates a rather cheap valuation: EXTR is cheaper than 85.42% of the companies listed in the same industry.
EXTR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 13.95 |
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 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.17 | ||
| EV/EBITDA | 44.08 |
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 19.73% in the coming years.
PEG (NY)0.98
PEG (5Y)0.38
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 (11/10/2025, 11:58:03 AM)
17.855
+0.43 (+2.5%)
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 Cap2.39B
Revenue(TTM)1.18B
Net Income(TTM)8.65M
Analysts81.54
Price Target24.31 (36.15%)
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 | 20.06 | ||
| Fwd PE | 13.95 | ||
| P/S | 2.02 | ||
| P/FCF | 25.17 | ||
| P/OCF | 19.98 | ||
| P/B | 34.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.08 |
EPS(TTM)0.89
EY4.98%
EPS(NY)1.28
Fwd EY7.17%
FCF(TTM)0.71
FCFY3.97%
OCF(TTM)0.89
OCFY5.01%
SpS8.84
BVpS0.51
TBVpS-2.52
PEG (NY)0.98
PEG (5Y)0.38
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 | 1.21 |
F-Score9
WACC9.27%
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.