US30226D1063 - Common Stock

**EXTR** gets a fundamental rating of **6** out of 10. The analysis compared the fundamentals against 59 industry peers in the **Communications Equipment** industry. **EXTR** has an excellent profitability rating, but there are some minor concerns on its financial health. **EXTR** has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make **EXTR** a good candidate for value and growth investing.

In the past year **EXTR** was profitable.

In multiple years **EXTR** reported negative net income over the last 5 years.

The last **Return On Invested Capital** (**19.16%**) for **EXTR** is above the 3 year average (**11.08%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 8.5% | ||

ROE | 86.73% | ||

ROIC | 19.16% |

ROA(3y)3.72%

ROA(5y)-1.04%

ROE(3y)39.8%

ROE(5y)-450.21%

ROIC(3y)11.08%

ROIC(5y)N/A

With an excellent **Gross Margin** value of **58.55%**, **EXTR** belongs to the best of the industry, outperforming **86.44%** of the companies in the same industry.

In the last couple of years the **Gross Margin** of **EXTR** has remained more or less at the same level.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 9.64% | ||

PM (TTM) | 6.88% | ||

GM | 58.55% |

OM growth 3YN/A

OM growth 5Y28.56%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.73%

GM growth 5Y1.13%

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), **EXTR** is creating value.

Compared to 1 year ago, **EXTR** has less 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.

The Debt to FCF ratio of **EXTR** is **0.75**, which is an excellent value as it means it would take **EXTR**, only **0.75** years of fcf income to pay off all of its debts.

The **Debt to FCF ratio** of **EXTR** (**0.75**) is better than **79.66%** of its industry peers.

The **Debt to Equity ratio** of **EXTR** (**1.71**) is worse than **79.66%** 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 | 1.71 | ||

Debt/FCF | 0.75 | ||

Altman-Z | 1.91 |

ROIC/WACC2.22

WACC8.62%

Looking at the **Current ratio**, with a value of **1.01**, **EXTR** is doing worse than **83.05%** of the companies in the same industry.

A Quick Ratio of **0.82** indicates that **EXTR** may have some problems paying its short term obligations.

With a **Quick ratio** value of **0.82**, **EXTR** is not doing good in the industry: **74.58%** of the companies in the same industry are doing better.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.01 | ||

Quick Ratio | 0.82 |

The **Earnings Per Share** has grown by an impressive **61.04%** over the past year.

Looking at the last year, **EXTR** shows a quite strong growth in **Revenue**. The Revenue has grown by **19.74%** in the last year.

Measured over the past years, **EXTR** shows a small growth in **Revenue**. The Revenue has been growing by **5.95%** on average per year.

EPS 1Y (TTM)61.04%

EPS 3Y121.72%

EPS 5Y10.55%

EPS growth Q2Q75%

Revenue 1Y (TTM)19.74%

Revenue growth 3Y11.45%

Revenue growth 5Y5.95%

Revenue growth Q2Q18.61%

The **Earnings Per Share** is expected to grow by **21.66%** on average over the next years. This is a very strong growth

Based on estimates for the next years, **EXTR** will show a quite strong growth in **Revenue**. The Revenue will grow by **8.21%** on average per year.

EPS Next Y29.2%

EPS Next 2Y24.69%

EPS Next 3Y21.66%

EPS Next 5YN/A

Revenue Next Year7.51%

Revenue Next 2Y8.13%

Revenue Next 3Y8.21%

Revenue Next 5YN/A

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.

A **Price/Earnings** ratio of **13.72** indicates a correct valuation of **EXTR**.

When comparing the **Price/Earnings** ratio of **EXTR** to the average of the S&P500 Index (**24.54**), we can say **EXTR** is valued slightly cheaper.

The **Price/Forward Earnings** ratio is **10.04**, which indicates a very decent valuation of **EXTR**.

Compared to the rest of the industry, the **Price/Forward Earnings** ratio of **EXTR** indicates a rather cheap valuation: **EXTR** is cheaper than 84.75% of the companies listed in the same industry.

The average S&P500 **Price/Forward Earnings** ratio is at **20.22**. **EXTR** is valued rather cheaply when compared to this.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 13.72 | ||

Fwd PE | 10.04 |

Based on the **Enterprise Value to EBITDA** ratio, **EXTR** is valued a bit cheaper than 66.10% of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 8.48 | ||

EV/EBITDA | 13.22 |

PEG (NY)0.47

PEG (5Y)1.3

EPS Next 2Y24.69%

EPS Next 3Y21.66%

No dividends for **EXTR**!.

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | N/A |

**EXTREME NETWORKS INC**

NASDAQ:EXTR (12/8/2023, 7:00:02 PM)

After market: 17.1 +0.09 (+0.53%)**17.01**

**+0.68 (+4.16%) **

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 Cap2.20B

Analysts

Price Target

Dividend

Industry Rank | Sector Rank | ||
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Dividend Yield | N/A |

Dividend Growth(5Y)

DP

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

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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 | 13.72 | ||

Fwd PE | 10.04 | ||

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)0.47

PEG (5Y)1.3

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 8.5% | ||

ROE | 86.73% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 9.64% | ||

PM (TTM) | 6.88% | ||

GM | 58.55% | ||

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 Turnover1.24

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 1.71 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 1.01 | ||

Quick Ratio | 0.82 | ||

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)

Growth

EPS 1Y (TTM)61.04%

EPS 3Y121.72%

EPS 5Y

EPS growth Q2Q

EPS Next Y29.2%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)19.74%

Revenue growth 3Y11.45%

Revenue growth 5Y

Revenue growth 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