17.48 USD
+0.01 (+0.06%)
17.48 USD
0 (0%)
EXTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 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.
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 0.75%, EXTR is in line with its industry, outperforming 56.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.61%, EXTR is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
EXTR has a better Return On Invested Capital (4.61%) than 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
EXTR's Profit Margin of 0.73% is in line compared to the rest of the industry. EXTR outperforms 54.17% of its industry peers.
The Operating Margin of EXTR (2.84%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EXTR has declined.
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.
In the last couple of years the Gross Margin of EXTR has grown nicely.
| 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.
Compared to 5 years ago, EXTR has more shares outstanding
EXTR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that EXTR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EXTR (1.21) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of EXTR (2.10) is better than 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.
EXTR has a worse Debt to Equity ratio (2.32) 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 | 2.32 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.49
WACC9.38%
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.
EXTR has a Current ratio of 0.91. This is amonst the worse of the industry: EXTR underperforms 93.75% of its industry peers.
A Quick Ratio of 0.75 indicates that EXTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, EXTR is doing worse than 89.58% of the companies in the same industry.
| 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.
EXTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 53.06% yearly.
The Revenue has grown by 14.31% in the past year. This is quite good.
The Revenue has been growing slightly by 3.76% on average over the past years.
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.
Based on estimates for the next years, EXTR will show a quite strong growth in Revenue. The Revenue will grow by 9.02% on average per year.
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
EXTR is valuated rather expensively with a Price/Earnings ratio of 19.64.
Based on the Price/Earnings ratio, EXTR is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
EXTR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 13.66, which indicates a correct valuation of EXTR.
Based on the Price/Forward Earnings ratio, EXTR is valued cheaper than 85.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. EXTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 13.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EXTR.
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 | 24.64 | ||
| EV/EBITDA | 44.19 |
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.
EXTR's earnings are expected to grow with 19.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)0.37
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 |
17.48
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.34%
Inst Owner Change2.19%
Ins Owners3.25%
Ins Owner Change6.53%
Market Cap2.34B
Revenue(TTM)1.18B
Net Income(TTM)8.65M
Analysts81.54
Price Target24.77 (41.7%)
Short Float %6.28%
Short Ratio4.53
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)1.9%
PT rev (3m)1.9%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)2.48%
Revenue NQ rev (3m)2.48%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.64 | ||
| Fwd PE | 13.66 | ||
| P/S | 1.98 | ||
| P/FCF | 24.64 | ||
| P/OCF | 19.56 | ||
| P/B | 34.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.19 |
EPS(TTM)0.89
EY5.09%
EPS(NY)1.28
Fwd EY7.32%
FCF(TTM)0.71
FCFY4.06%
OCF(TTM)0.89
OCFY5.11%
SpS8.84
BVpS0.51
TBVpS-2.52
PEG (NY)0.96
PEG (5Y)0.37
Graham Number3.21
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 | 1.21 |
F-Score9
WACC9.38%
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 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.