NETGEAR INC (NTGR) Stock Fundamental Analysis
USA - NASDAQ:NTGR - US64111Q1040 - Common Stock
29.63 USD
+0.32 (+1.09%)
29.63 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to NTGR. NTGR was compared to 48 industry peers in the Communications Equipment industry. NTGR has a great financial health rating, but its profitability evaluates not so good. While showing a medium growth rate, NTGR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
NTGR had positive earnings in the past year.
In the past year NTGR had a positive cash flow from operations.
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
NTGR's Return On Assets of -3.22% is in line compared 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.
With a Gross Margin value of 36.01%, NTGR perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
NTGR's Gross Margin has been stable in the last couple of years.
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.
NTGR has less 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
An Altman-Z score of 2.16 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 2.16. This is comparable to the rest of the industry: NTGR outperforms 56.25% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.16 |
ROIC/WACCN/A
WACC9.18%
2.3 Liquidity
A Current Ratio of 2.85 indicates that NTGR has no problem at all paying its short term obligations.
NTGR's Current ratio of 2.85 is fine compared to the rest of the industry. NTGR outperforms 75.00% of its industry peers.
A Quick Ratio of 2.15 indicates that NTGR has no problem at all paying its short term obligations.
NTGR has a Quick ratio of 2.15. This is in the better half of the industry: NTGR outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 118.42% over the past year.
The earnings per share for NTGR have been decreasing by -12.46% on average. This is quite bad
NTGR shows a small growth in Revenue. In the last year, the Revenue has grown by 2.88%.
The Revenue has been decreasing by -7.57% on average over the past years.
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
Based on estimates for the next years, NTGR will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y117.93%
EPS Next 2Y49.89%
EPS Next 3Y37.4%
EPS Next 5Y26.97%
Revenue Next Year5.37%
Revenue Next 2Y4.05%
Revenue Next 3Y5.52%
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
Based on the Price/Earnings ratio of 211.64, the valuation of NTGR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as NTGR.
Compared to an average S&P500 Price/Earnings ratio of 26.28, NTGR is valued quite expensively.
NTGR is valuated quite expensively with a Price/Forward Earnings ratio of 132.04.
Based on the Price/Forward Earnings ratio, NTGR is valued a bit more expensive than the industry average as 64.58% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, NTGR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 211.64 | ||
| Fwd PE | 132.04 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
NTGR's 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 37.40% in the coming years.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y49.89%
EPS Next 3Y37.4%
5. Dividend
5.1 Amount
No dividends for NTGR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.63
+0.32 (+1.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.39%
Inst Owner Change0.09%
Ins Owners4.44%
Ins Owner Change4.35%
Market Cap859.57M
Revenue(TTM)699.57M
Net Income(TTM)-26.13M
Analysts82
Price Target37.06 (25.08%)
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)175%
EPS NQ rev (3m)237.5%
EPS NY rev (1m)N/A
EPS NY rev (3m)166.67%
Revenue NQ rev (1m)-4.28%
Revenue NQ rev (3m)-5.44%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 211.64 | ||
| Fwd PE | 132.04 | ||
| P/S | 1.23 | ||
| P/FCF | N/A | ||
| P/OCF | 240.1 | ||
| P/B | 1.7 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.14
EY0.47%
EPS(NY)0.22
Fwd EY0.76%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.12
OCFY0.42%
SpS24.11
BVpS17.47
TBVpS15.75
PEG (NY)1.79
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 | 2.16 |
F-Score7
WACC9.18%
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 Y117.93%
EPS Next 2Y49.89%
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 Year5.37%
Revenue Next 2Y4.05%
Revenue Next 3Y5.52%
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 1 / 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 2 / 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 117.93% in the next year.