NETGEAR INC (NTGR)

US64111Q1040 - Common Stock

14.94  +0.16 (+1.08%)

After market: 11.9258 -3.01 (-20.18%)

Fundamental Rating

4

Overall NTGR gets a fundamental rating of 4 out of 10. We evaluated NTGR against 54 industry peers in the Communications Equipment industry. NTGR has a great financial health rating, but its profitability evaluates not so good. NTGR is valued correctly, but it does not seem to be growing.



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1

1. Profitability

1.1 Basic Checks

In the past year NTGR has reported negative net income.
NTGR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NTGR reported negative net income in multiple years.
In multiple years NTGR reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -12.37%, NTGR is doing worse than 68.52% of the companies in the same industry.
The Return On Equity of NTGR (-19.56%) is worse than 62.96% of its industry peers.
Industry RankSector Rank
ROA -12.37%
ROE -19.56%
ROIC N/A
ROA(3y)-4.85%
ROA(5y)-1.32%
ROE(3y)-7.86%
ROE(5y)-2.18%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

With a Gross Margin value of 33.65%, NTGR is not doing good in the industry: 62.96% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of NTGR has remained more or less at the same level.
NTGR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 33.65%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.3%
GM growth 5Y0.84%

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7

2. Health

2.1 Basic Checks

NTGR does not have a ROIC to compare to the WACC, probably because it is not profitable.
NTGR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NTGR has less shares outstanding
There is no outstanding debt for NTGR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

NTGR has an Altman-Z score of 1.61. This is a bad value and indicates that NTGR is not financially healthy and even has some risk of bankruptcy.
NTGR's Altman-Z score of 1.61 is fine compared to the rest of the industry. NTGR outperforms 62.96% of its industry peers.
NTGR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.61
ROIC/WACCN/A
WACC9.7%

2.3 Liquidity

A Current Ratio of 2.83 indicates that NTGR has no problem at all paying its short term obligations.
NTGR's Current ratio of 2.83 is fine compared to the rest of the industry. NTGR outperforms 68.52% of its industry peers.
NTGR has a Quick Ratio of 1.89. This is a normal value and indicates that NTGR is financially healthy and should not expect problems in meeting its short term obligations.
NTGR has a better Quick ratio (1.89) than 70.37% of its industry peers.
Industry RankSector Rank
Current Ratio 2.83
Quick Ratio 1.89

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 89.66% over the past year.
Looking at the last year, NTGR shows a very negative growth in Revenue. The Revenue has decreased by -20.56% in the last year.
The Revenue has been decreasing by -6.89% on average over the past years.
EPS 1Y (TTM)89.66%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q400%
Revenue 1Y (TTM)-20.56%
Revenue growth 3Y-16.12%
Revenue growth 5Y-6.89%
Revenue growth Q2Q-24.26%

3.2 Future

The Earnings Per Share is expected to grow by 354.97% on average over the next years. This is a very strong growth
NTGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
EPS Next Y960.2%
EPS Next 2Y354.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.3%
Revenue Next 2Y4.57%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

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.

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4

4. Valuation

4.1 Price/Earnings Ratio

NTGR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 57.89, which means the current valuation is very expensive for NTGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTGR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, NTGR is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 57.89

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, NTGR is valued cheaply inside the industry as 87.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.68
EV/EBITDA N/A

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 NTGR's earnings are expected to grow with 354.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y354.97%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

NTGR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NETGEAR INC

NASDAQ:NTGR (5/1/2024, 7:13:21 PM)

After market: 11.9258 -3.01 (-20.18%)

14.94

+0.16 (+1.08%)

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 Cap443.12M
Analysts
Price Target
Dividend
Industry RankSector 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 RankSector Rank
PE N/A
Fwd PE 57.89
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)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -12.37%
ROE -19.56%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 33.65%
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 Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.83
Quick Ratio 1.89
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)89.66%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y960.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-20.56%
Revenue growth 3Y-16.12%
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