EXTREME NETWORKS INC (EXTR)
US30226D1063 - Common Stock
Overall EXTR gets a fundamental rating of 3 out of 10. We evaluated EXTR against 52 industry peers in the Communications Equipment industry. EXTR may be in some trouble as it scores bad on both profitability and health. EXTR has a correct valuation and a medium growth rate.
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.
In the past 5 years EXTR always reported a positive cash flow from operatings.
1.2 Ratios
EXTR has a Return On Assets (-8.24%) which is in line with its industry peers.
EXTR's Return On Equity of -339.93% is on the low side compared to the rest of the industry. EXTR is outperformed by 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.24% | ||
| ROE | -339.93% | ||
| 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's Gross Margin of 56.46% is fine compared to the rest of the industry. EXTR outperforms 78.85% of its industry peers.
In the last couple of years the Gross Margin of EXTR has remained more or less at the same level.
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 | 56.46% |
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.
Compared to 1 year ago, EXTR has more shares outstanding
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 0.85. 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 0.85, EXTR is in line with its industry, outperforming 50.00% of the companies in the same industry.
EXTR has a debt to FCF ratio of 5.02. This is a neutral value as EXTR would need 5.02 years to pay back of all of its debts.
EXTR has a Debt to FCF ratio of 5.02. This is comparable to the rest of the industry: EXTR outperforms 57.69% of its industry peers.
A Debt/Equity ratio of 7.05 is on the high side and indicates that EXTR has dependencies on debt financing.
With a Debt to Equity ratio value of 7.05, EXTR is not doing good in the industry: 88.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | 5.02 | ||
| Altman-Z | 0.85 |
ROIC/WACCN/A
WACC9.2%
2.3 Liquidity
EXTR has a Current Ratio of 0.90. This is a bad value and indicates that EXTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.90, EXTR is doing worse than 92.31% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that EXTR may have some problems paying its short term obligations.
EXTR's Quick ratio of 0.63 is on the low side compared to the rest of the industry. EXTR is outperformed by 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for EXTR have decreased strongly by -70.64% 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 -14.88%.
The Revenue has been growing slightly by 2.33% on average over the past years.
EPS 1Y (TTM)-70.64%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%-124.24%
Revenue 1Y (TTM)-14.88%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%-29.46%
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 50.06% on average per year.
Based on estimates for the next years, EXTR will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y134.1%
EPS Next 2Y79.24%
EPS Next 3Y50.06%
EPS Next 5YN/A
Revenue Next Year0.26%
Revenue Next 2Y4.39%
Revenue Next 3Y3.21%
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.
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
The Price/Earnings ratio is 47.45, which means the current valuation is very expensive for EXTR.
EXTR's Price/Earnings ratio is in line with the industry average.
EXTR is valuated expensively when we compare the Price/Earnings ratio to 31.52, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.27 indicates a rather expensive valuation of EXTR.
The rest of the industry has a similar Price/Forward Earnings ratio as EXTR.
When comparing the Price/Forward Earnings ratio of EXTR to the average of the S&P500 Index (22.55), we can say EXTR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.45 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
EXTR's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as EXTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.66 | ||
| EV/EBITDA | 3741.56 |
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.
A more expensive valuation may be justified as EXTR's earnings are expected to grow with 50.06% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y79.24%
EPS Next 3Y50.06%
5. Dividend
5.1 Amount
No dividends for EXTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EXTREME NETWORKS INC
NASDAQ:EXTR (10/14/2024, 10:23:14 AM)
15.185
-0.16 (-1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.45 | ||
| Fwd PE | 20.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.24% | ||
| ROE | -339.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-70.64%
EPS 3Y-17.51%
EPS 5Y
EPS Q2Q%
EPS Next Y134.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.88%
Revenue growth 3Y3.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y