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 48 industry peers in the Communications Equipment industry. EXTR has a bad profitability rating. Also its financial health evaluation is rather negative. EXTR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EXTR had positive earnings in the past year.
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.
Each year in the past 5 years EXTR had a positive operating cash flow.
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: 72.92% 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 81.25% 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.
Compared to 1 year ago, EXTR has more shares outstanding
Compared to 5 years ago, EXTR has more shares outstanding
The debt/assets ratio for EXTR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, 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 1.05, EXTR is in line with its industry, outperforming 52.08% of the companies in the same industry.
EXTR has a debt to FCF ratio of 2.86. This is a good value and a sign of high solvency as EXTR would need 2.86 years to pay back of all of its debts.
EXTR has a Debt to FCF ratio of 2.86. This is in the better half of the industry: EXTR outperforms 60.42% 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.
The Debt to Equity ratio of EXTR (2.33) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 2.86 | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACC10.11%
2.3 Liquidity
A Current Ratio of 0.93 indicates that EXTR may have some problems paying 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 87.50% of its industry peers.
EXTR has a Quick 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.
Looking at the Quick ratio, with a value of 0.70, EXTR is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
EXTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.14%.
The Earnings Per Share has been decreasing by -1.78% on average over the past years.
The Revenue for EXTR has decreased by -11.00% in the past year. This is quite bad
Measured over the past years, EXTR shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
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
The Earnings Per Share is expected to grow by 56.97% on average over the next years. This is a very strong growth
Based on estimates for the next years, EXTR will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
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
Based on the Price/Earnings ratio of 32.90, the valuation of EXTR can be described as expensive.
EXTR's Price/Earnings ratio is a bit cheaper when compared to the industry. EXTR is cheaper than 60.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. EXTR is around the same levels.
Based on the Price/Forward Earnings ratio of 16.62, the valuation of EXTR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXTR indicates a somewhat cheap valuation: EXTR is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. EXTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 16.62 |
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 | 35.46 | ||
| EV/EBITDA | 309.53 |
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)0.21
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 |
16.78
-0.29 (-1.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.07%
Inst Owner Change-0.02%
Ins Owners2.97%
Ins Owner Change1.44%
Market Cap2.23B
Analysts76.92
Price Target19.47 (16.03%)
Short Float %5.49%
Short Ratio5.7
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)1.78%
PT rev (3m)-3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0%
EPS NY rev (3m)3.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 16.62 | ||
| P/S | 2.05 | ||
| P/FCF | 35.46 | ||
| P/OCF | 26.11 | ||
| P/B | 31.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 309.53 |
EPS(TTM)0.51
EY3.04%
EPS(NY)1.01
Fwd EY6.02%
FCF(TTM)0.47
FCFY2.82%
OCF(TTM)0.64
OCFY3.83%
SpS8.18
BVpS0.54
TBVpS-2.48
PEG (NY)0.21
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 | 1.05 |
F-Score4
WACC10.11%
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 Year64.8%
EBIT Next 3Y28.26%
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%