NETGEAR INC (NTGR) Stock Fundamental Analysis
USA - NASDAQ:NTGR - US64111Q1040 - Common Stock
34.72 USD
+0.83 (+2.45%)
34.72 USD
0 (0%)
NTGR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year NTGR was profitable.
In the past year NTGR had a positive cash flow from operations.
In multiple years NTGR reported negative net income over the last 5 years.
In multiple years NTGR reported negative operating cash flow during the last 5 years.
1.2 Ratios
NTGR has a Return On Assets of -3.22%. This is comparable to the rest of the industry: NTGR outperforms 41.67% of its industry peers.
Looking at the Return On Equity, with a value of -5.15%, NTGR is in line with its industry, outperforming 45.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.22% | ||
| ROE | -5.15% | ||
| 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's Profit Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 36.01%, NTGR is in line with its industry, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Gross Margin of NTGR has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for NTGR so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.01% |
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
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
An Altman-Z score of 2.47 indicates that NTGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
NTGR's Altman-Z score of 2.47 is in line compared to the rest of the industry. NTGR outperforms 54.17% 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 | N/A | ||
| Altman-Z | 2.47 |
ROIC/WACCN/A
WACC9.13%
2.3 Liquidity
A Current Ratio of 2.85 indicates that NTGR has no problem at all paying its short term obligations.
NTGR has a better Current ratio (2.85) than 72.92% of its industry peers.
NTGR has a Quick Ratio of 2.15. This indicates that NTGR is financially healthy and has no problem in meeting its short term obligations.
NTGR's Quick ratio of 2.15 is fine compared to the rest of the industry. NTGR outperforms 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
NTGR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 118.42%, which is quite impressive.
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.
Looking at the last year, NTGR shows a small growth in Revenue. The Revenue has grown by 2.88% in the last year.
Measured over the past years, NTGR shows a decrease in Revenue. The Revenue has been decreasing by -7.57% on average per year.
EPS 1Y (TTM)118.42%
EPS 3Y-36.02%
EPS 5Y-12.46%
EPS Q2Q%-29.41%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y-16.76%
Revenue growth 5Y-7.57%
Sales Q2Q%0.93%
3.2 Future
The Earnings Per Share is expected to grow by 26.97% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y100%
EPS Next 2Y46.67%
EPS Next 3Y37.4%
EPS Next 5Y26.97%
Revenue Next Year4.73%
Revenue Next 2Y4.28%
Revenue Next 3Y4.83%
Revenue Next 5Y6.08%
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
The Price/Earnings ratio is 248.00, which means the current valuation is very expensive for NTGR.
Compared to the rest of the industry, the Price/Earnings ratio of NTGR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.11, NTGR is valued quite expensively.
A Price/Forward Earnings ratio of 252.14 indicates a quite expensive valuation of NTGR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTGR indicates a slightly more expensive valuation: NTGR is more expensive than 64.58% of the companies listed in the same industry.
NTGR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 248 | ||
| Fwd PE | 252.14 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as NTGR's earnings are expected to grow with 37.40% in the coming years.
PEG (NY)2.48
PEG (5Y)N/A
EPS Next 2Y46.67%
EPS Next 3Y37.4%
5. Dividend
5.1 Amount
No dividends for NTGR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.72
+0.83 (+2.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change-0.48%
Ins Owners4.44%
Ins Owner Change4.72%
Market Cap1.01B
Revenue(TTM)699.57M
Net Income(TTM)-26125000
Analysts82.22
Price Target37.06 (6.74%)
Short Float %6.03%
Short Ratio3.72
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)184.97%
Min EPS beat(2)139.22%
Max EPS beat(2)230.72%
EPS beat(4)4
Avg EPS beat(4)137.68%
Min EPS beat(4)75.49%
Max EPS beat(4)230.72%
EPS beat(8)8
Avg EPS beat(8)147.09%
EPS beat(12)11
Avg EPS beat(12)150.3%
EPS beat(16)13
Avg EPS beat(16)96.22%
Revenue beat(2)2
Avg Revenue beat(2)4.04%
Min Revenue beat(2)3.17%
Max Revenue beat(2)4.91%
Revenue beat(4)4
Avg Revenue beat(4)4.81%
Min Revenue beat(4)3.17%
Max Revenue beat(4)6.79%
Revenue beat(8)6
Avg Revenue beat(8)3.27%
Revenue beat(12)9
Avg Revenue beat(12)2.65%
Revenue beat(16)11
Avg Revenue beat(16)0.68%
PT rev (1m)13.54%
PT rev (3m)25.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)150%
EPS NY rev (1m)N/A
EPS NY rev (3m)100%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 248 | ||
| Fwd PE | 252.14 | ||
| P/S | 1.44 | ||
| P/FCF | N/A | ||
| P/OCF | 281.35 | ||
| P/B | 1.99 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.14
EY0.4%
EPS(NY)0.14
Fwd EY0.4%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.12
OCFY0.36%
SpS24.11
BVpS17.47
TBVpS15.75
PEG (NY)2.48
PEG (5Y)N/A
Graham Number7.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.22% | ||
| ROE | -5.15% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.01% | ||
| FCFM | 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
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 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-Score7
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 249.53% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 2.47 |
F-Score7
WACC9.13%
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)118.42%
EPS 3Y-36.02%
EPS 5Y-12.46%
EPS Q2Q%-29.41%
EPS Next Y100%
EPS Next 2Y46.67%
EPS Next 3Y37.4%
EPS Next 5Y26.97%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y-16.76%
Revenue growth 5Y-7.57%
Sales Q2Q%0.93%
Revenue Next Year4.73%
Revenue Next 2Y4.28%
Revenue Next 3Y4.83%
Revenue Next 5Y6.08%
EBIT growth 1Y34.49%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year89.22%
EBIT Next 3Y30.58%
EBIT Next 5Y21.75%
FCF growth 1Y-41.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y183.26%
OCF growth 3YN/A
OCF growth 5Y64.94%
NETGEAR INC / NTGR FAQ
What is the fundamental rating for NTGR stock?
ChartMill assigns a fundamental rating of 4 / 10 to NTGR.
What is the valuation status for NTGR stock?
ChartMill assigns a valuation rating of 3 / 10 to NETGEAR INC (NTGR). This can be considered as Overvalued.
What is the profitability of NTGR stock?
NETGEAR INC (NTGR) has a profitability rating of 3 / 10.
Can you provide the financial health for NTGR stock?
The financial health rating of NETGEAR INC (NTGR) is 8 / 10.
Can you provide the expected EPS growth for NTGR stock?
The Earnings per Share (EPS) of NETGEAR INC (NTGR) is expected to grow by 100% in the next year.