EXTREME NETWORKS INC (EXTR) Stock Fundamental Analysis
NASDAQ:EXTR • US30226D1063
13.98 USD
-0.07 (-0.5%)
At close: Feb 27, 2026
14.05 USD
+0.07 (+0.5%)
After Hours: 2/27/2026, 8:00:02 PM
We assign a fundamental rating of 5 out of 10 to EXTR. EXTR was compared to 48 industry peers in the Communications Equipment industry. While EXTR is still in line with the averages on profitability rating, there are concerns on its financial health. EXTR is growing strongly while it also seems undervalued. This is an interesting combination
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.
- Each year in the past 5 years EXTR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.78%, EXTR is in line with its industry, outperforming 58.33% of the companies in the same industry.
- The Return On Equity of EXTR (9.53%) is better than 79.17% of its industry peers.
- EXTR has a Return On Invested Capital of 4.32%. This is in the better half of the industry: EXTR outperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 9.53% | ||
| ROIC | 4.32% |
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
- The Profit Margin of EXTR (0.75%) is comparable to the rest of the industry.
- EXTR's Operating Margin of 2.71% is in line compared to the rest of the industry. EXTR outperforms 52.08% of its industry peers.
- In the last couple of years the Operating Margin of EXTR has declined.
- The Gross Margin of EXTR (61.30%) is better than 79.17% of its industry peers.
- In the last couple of years the Gross Margin of EXTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.71% | ||
| PM (TTM) | 0.75% | ||
| GM | 61.3% |
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.
- Compared to 1 year ago, EXTR has an improved debt to assets ratio.
2.2 Solvency
- EXTR has an Altman-Z score of 1.04. 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 of 1.04. This is comparable to the rest of the industry: EXTR outperforms 47.92% of its industry peers.
- The Debt to FCF ratio of EXTR is 1.40, which is an excellent value as it means it would take EXTR, only 1.40 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.40, EXTR is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- EXTR has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of EXTR (1.61) is worse than 89.58% of its industry peers.
- 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 | 1.61 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.45
WACC9.7%
2.3 Liquidity
- EXTR has a Current Ratio of 0.95. 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 Current ratio value of 0.95, EXTR is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
- A Quick Ratio of 0.80 indicates that EXTR may have some problems paying its short term obligations.
- The Quick ratio of EXTR (0.80) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- EXTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 754.55%, 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.
- EXTR shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.02%.
- EXTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
EPS 1Y (TTM)754.55%
EPS 3Y2.5%
EPS 5Y53.06%
EPS Q2Q%23.81%
Revenue 1Y (TTM)20.02%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%13.81%
3.2 Future
- EXTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.09% 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 Y20.99%
EPS Next 2Y24.38%
EPS Next 3Y20.05%
EPS Next 5Y22.09%
Revenue Next Year11.59%
Revenue Next 2Y9.54%
Revenue Next 3Y8.51%
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.
- 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
- With a Price/Earnings ratio of 14.87, EXTR is valued correctly.
- EXTR's Price/Earnings ratio is rather cheap when compared to the industry. EXTR is cheaper than 85.42% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.07. EXTR is valued slightly cheaper when compared to this.
- EXTR is valuated reasonably with a Price/Forward Earnings ratio of 10.76.
- Based on the Price/Forward Earnings ratio, EXTR is valued cheaper than 93.75% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.05. EXTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as EXTR.
- EXTR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EXTR is cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.42 | ||
| EV/EBITDA | 35.27 |
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 20.05% in the coming years.
PEG (NY)0.71
PEG (5Y)0.28
EPS Next 2Y24.38%
EPS Next 3Y20.05%
5. Dividend
5.1 Amount
- EXTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
13.98
-0.07 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-28 2026-01-28/bmo
Earnings (Next)04-28 2026-04-28/bmo
Inst Owners95.79%
Inst Owner Change1.92%
Ins Owners3.2%
Ins Owner Change1.28%
Market Cap1.88B
Revenue(TTM)1.22B
Net Income(TTM)9.14M
Analysts82.86
Price Target23.84 (70.53%)
Short Float %7.37%
Short Ratio6.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)3.13%
Min EPS beat(2)0.38%
Max EPS beat(2)5.88%
EPS beat(4)4
Avg EPS beat(4)6.77%
Min EPS beat(4)0.38%
Max EPS beat(4)11.89%
EPS beat(8)6
Avg EPS beat(8)-10.73%
EPS beat(12)9
Avg EPS beat(12)-5.82%
EPS beat(16)13
Avg EPS beat(16)-1.73%
Revenue beat(2)1
Avg Revenue beat(2)1.33%
Min Revenue beat(2)-0.2%
Max Revenue beat(2)2.85%
Revenue beat(4)2
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-0.5%
Max Revenue beat(4)2.85%
Revenue beat(8)4
Avg Revenue beat(8)0.35%
Revenue beat(12)6
Avg Revenue beat(12)0.56%
Revenue beat(16)9
Avg Revenue beat(16)0.85%
PT rev (1m)-3.61%
PT rev (3m)-3.75%
EPS NQ rev (1m)-2.55%
EPS NQ rev (3m)-2.55%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 10.76 | ||
| P/S | 1.54 | ||
| P/FCF | 15.42 | ||
| P/OCF | 12.68 | ||
| P/B | 19.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.27 |
EPS(TTM)0.94
EY6.72%
EPS(NY)1.3
Fwd EY9.3%
FCF(TTM)0.91
FCFY6.49%
OCF(TTM)1.1
OCFY7.89%
SpS9.08
BVpS0.71
TBVpS-2.3
PEG (NY)0.71
PEG (5Y)0.28
Graham Number3.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 9.53% | ||
| ROCE | 5.47% | ||
| ROIC | 4.32% | ||
| ROICexc | 6.8% | ||
| ROICexgc | N/A | ||
| OM | 2.71% | ||
| PM (TTM) | 0.75% | ||
| GM | 61.3% | ||
| FCFM | 9.98% |
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 Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 2.97 | ||
| Cap/Depr | 139.75% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 285.64% | ||
| Profit Quality | 1331.69% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.04 |
F-Score9
WACC9.7%
ROIC/WACC0.45
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)754.55%
EPS 3Y2.5%
EPS 5Y53.06%
EPS Q2Q%23.81%
EPS Next Y20.99%
EPS Next 2Y24.38%
EPS Next 3Y20.05%
EPS Next 5Y22.09%
Revenue 1Y (TTM)20.02%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%13.81%
Revenue Next Year11.59%
Revenue Next 2Y9.54%
Revenue Next 3Y8.51%
Revenue Next 5Y9.02%
EBIT growth 1Y143.02%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year27.5%
EBIT Next 3Y20.14%
EBIT Next 5Y16.01%
FCF growth 1Y-44.99%
FCF growth 3Y4.12%
FCF growth 5Y43.95%
OCF growth 1Y-37.99%
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.
Can you provide the valuation status for EXTREME NETWORKS INC?
ChartMill assigns a valuation rating of 7 / 10 to EXTREME NETWORKS INC (EXTR). This can be considered as Undervalued.
What is the profitability of EXTR stock?
EXTREME NETWORKS INC (EXTR) has a profitability rating of 4 / 10.
What is the financial health of EXTREME NETWORKS INC (EXTR) stock?
The financial health rating of EXTREME NETWORKS INC (EXTR) is 3 / 10.
What is the earnings growth outlook for EXTREME NETWORKS INC?
The Earnings per Share (EPS) of EXTREME NETWORKS INC (EXTR) is expected to grow by 20.99% in the next year.