NETGEAR INC (NTGR) Stock Fundamental Analysis
NASDAQ:NTGR - US64111Q1040 - Common Stock
27.17 USD
+0.4 (+1.49%)
27.17 USD
0 (0%)
Taking everything into account, NTGR scores 5 out of 10 in our fundamental rating. NTGR was compared to 48 industry peers in the Communications Equipment industry. No worries on liquidiy or solvency for NTGR as it has an excellent financial health rating, but there are worries on the profitability. NTGR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
NTGR had positive earnings in the past year.
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.
The reported operating cash flow has been mixed in the past 5 years: NTGR reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.93%, NTGR belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
NTGR's Return On Equity of 12.18% is fine compared to the rest of the industry. NTGR outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 12.18% | ||
| ROIC | N/A |
ROA(3y)-5.89%
ROA(5y)-1.57%
ROE(3y)-9.46%
ROE(5y)-2.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NTGR has a better Profit Margin (9.13%) than 79.17% of its industry peers.
NTGR's Profit Margin has declined in the last couple of years.
NTGR's Gross Margin of 33.84% is on the low side compared to the rest of the industry. NTGR is outperformed by 64.58% of its industry peers.
In the last couple of years the Gross Margin of NTGR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 9.13% | ||
| GM | 33.84% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-24.3%
PM growth 5Y-6.61%
GM growth 3Y-2.44%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
NTGR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NTGR has less shares outstanding
NTGR has less shares outstanding than it did 5 years ago.
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
An Altman-Z score of 2.28 indicates that NTGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
NTGR has a Altman-Z score of 2.28. This is in the better half of the industry: NTGR outperforms 66.67% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.28 |
ROIC/WACCN/A
WACC9.91%
2.3 Liquidity
NTGR has a Current Ratio of 2.87. This indicates that NTGR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.87, NTGR is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
A Quick Ratio of 2.23 indicates that NTGR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.23, NTGR is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 127.14% over the past year.
Measured over the past years, NTGR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.46% on average per year.
The Revenue has been growing slightly by 0.42% in the past year.
The Revenue has been decreasing by -7.57% on average over the past years.
EPS 1Y (TTM)127.14%
EPS 3Y-36.02%
EPS 5Y-12.46%
EPS Q2Q%108.11%
Revenue 1Y (TTM)0.42%
Revenue growth 3Y-16.76%
Revenue growth 5Y-7.57%
Sales Q2Q%18.51%
3.2 Future
NTGR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.10% yearly.
NTGR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.47% yearly.
EPS Next Y92.15%
EPS Next 2Y46.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.08%
Revenue Next 2Y4.47%
Revenue Next 3YN/A
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.
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
A Price/Earnings ratio of 143.00 indicates a quite expensive valuation of NTGR.
NTGR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.13, NTGR is valued quite expensively.
Based on the Price/Forward Earnings ratio of 221.98, the valuation of NTGR can be described as expensive.
66.67% of the companies in the same industry are cheaper than NTGR, based on the Price/Forward Earnings ratio.
NTGR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 143 | ||
| Fwd PE | 221.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTGR indicates a rather cheap valuation: NTGR is cheaper than 95.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.2 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as NTGR's earnings are expected to grow with 46.10% in the coming years.
PEG (NY)1.55
PEG (5Y)N/A
EPS Next 2Y46.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTGR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.17
+0.4 (+1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners94.15%
Inst Owner Change-3.06%
Ins Owners4.62%
Ins Owner Change5.07%
Market Cap788.20M
Analysts80
Price Target29.58 (8.87%)
Short Float %6.56%
Short Ratio3.77
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)122.26%
Min EPS beat(2)105.3%
Max EPS beat(2)139.22%
EPS beat(4)4
Avg EPS beat(4)209.17%
Min EPS beat(4)75.49%
Max EPS beat(4)516.67%
EPS beat(8)8
Avg EPS beat(8)193.39%
EPS beat(12)11
Avg EPS beat(12)143.16%
EPS beat(16)13
Avg EPS beat(16)82.93%
Revenue beat(2)2
Avg Revenue beat(2)3.76%
Min Revenue beat(2)3.17%
Max Revenue beat(2)4.36%
Revenue beat(4)4
Avg Revenue beat(4)4.19%
Min Revenue beat(4)2.43%
Max Revenue beat(4)6.79%
Revenue beat(8)6
Avg Revenue beat(8)3.35%
Revenue beat(12)9
Avg Revenue beat(12)2.24%
Revenue beat(16)10
Avg Revenue beat(16)0.15%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)10%
EPS NQ rev (3m)43.75%
EPS NY rev (1m)70.83%
EPS NY rev (3m)70.83%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-5.43%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 143 | ||
| Fwd PE | 221.98 | ||
| P/S | 1.13 | ||
| P/FCF | 7.2 | ||
| P/OCF | 6.64 | ||
| P/B | 1.51 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.19
EY0.7%
EPS(NY)0.12
Fwd EY0.45%
FCF(TTM)3.78
FCFY13.9%
OCF(TTM)4.09
OCFY15.05%
SpS24.06
BVpS18.03
TBVpS16.31
PEG (NY)1.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.93% | ||
| ROE | 12.18% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 9.13% | ||
| GM | 33.84% | ||
| FCFM | 15.7% |
ROA(3y)-5.89%
ROA(5y)-1.57%
ROE(3y)-9.46%
ROE(5y)-2.57%
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 3Y-24.3%
PM growth 5Y-6.61%
GM growth 3Y-2.44%
GM growth 5Y-0.26%
F-Score8
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 134.73% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 171.89% | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 2.28 |
F-Score8
WACC9.91%
ROIC/WACCN/A
Cap/Depr(3y)92.16%
Cap/Depr(5y)80.44%
Cap/Sales(3y)0.91%
Cap/Sales(5y)0.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)127.14%
EPS 3Y-36.02%
EPS 5Y-12.46%
EPS Q2Q%108.11%
EPS Next Y92.15%
EPS Next 2Y46.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.42%
Revenue growth 3Y-16.76%
Revenue growth 5Y-7.57%
Sales Q2Q%18.51%
Revenue Next Year5.08%
Revenue Next 2Y4.47%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y57.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year83.94%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y314.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y360.18%
OCF growth 3YN/A
OCF growth 5Y64.94%