16.92 USD
+0.01 (+0.06%)
16.92 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EXTR. EXTR was compared to 48 industry peers in the Communications Equipment industry. EXTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. EXTR is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
EXTR had positive earnings in the past year.
In the past year EXTR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EXTR reported negative net income in multiple years.
Each year in the past 5 years EXTR had a positive operating cash flow.
1.2 Ratios
EXTR has a Return On Assets (0.75%) which is in line with its industry peers.
EXTR has a Return On Equity of 12.61%. This is in the better half of the industry: EXTR outperforms 79.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.61%, EXTR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 12.61% | ||
| ROIC | 4.61% |
ROA(3y)-0.68%
ROA(5y)0.46%
ROE(3y)-94.85%
ROE(5y)-46.4%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.73%, EXTR is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Operating Margin of EXTR (2.84%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EXTR has declined.
The Gross Margin of EXTR (61.61%) is better than 79.17% of its industry peers.
In the last couple of years the Gross Margin of EXTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.84% | ||
| PM (TTM) | 0.73% | ||
| GM | 61.61% |
OM growth 3Y-37.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.18%
GM growth 5Y2.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EXTR is destroying value.
The number of shares outstanding for EXTR has been increased compared to 1 year ago.
Compared to 5 years ago, EXTR has more shares outstanding
The debt/assets ratio for EXTR has been reduced compared to a year ago.
2.2 Solvency
EXTR has an Altman-Z score of 1.17. This is a bad value and indicates that EXTR is not financially healthy and even has some risk of bankruptcy.
EXTR has a Altman-Z score (1.17) which is in line with its industry peers.
EXTR has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as EXTR would need 2.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.10, EXTR is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 2.32 is on the high side and indicates that EXTR has dependencies on debt financing.
With a Debt to Equity ratio value of 2.32, EXTR is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
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 | 2.32 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.49
WACC9.47%
2.3 Liquidity
A Current Ratio of 0.91 indicates that EXTR may have some problems paying its short term obligations.
EXTR's Current ratio of 0.91 is on the low side compared to the rest of the industry. EXTR is outperformed by 93.75% of its industry peers.
EXTR has a Quick Ratio of 0.91. This is a bad value and indicates that EXTR is not financially healthy enough and could expect problems in meeting its short term obligations.
EXTR has a worse Quick ratio (0.75) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
EXTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 535.71%, which is quite impressive.
EXTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 53.06% yearly.
EXTR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.31%.
Measured over the past years, EXTR shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
EPS 1Y (TTM)535.71%
EPS 3Y2.5%
EPS 5Y53.06%
EPS Q2Q%29.41%
Revenue 1Y (TTM)14.31%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%15.25%
3.2 Future
Based on estimates for the next years, EXTR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.93% on average per year.
The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y21.12%
EPS Next 2Y23.69%
EPS Next 3Y19.77%
EPS Next 5Y21.93%
Revenue Next Year10.9%
Revenue Next 2Y9.1%
Revenue Next 3Y8.29%
Revenue Next 5Y9.02%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
The Price/Earnings ratio is 19.01, which indicates a rather expensive current valuation of EXTR.
Based on the Price/Earnings ratio, EXTR is valued a bit cheaper than 75.00% of the companies in the same industry.
EXTR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.56.
EXTR is valuated correctly with a Price/Forward Earnings ratio of 13.17.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EXTR indicates a rather cheap valuation: EXTR is cheaper than 89.58% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EXTR to the average of the S&P500 Index (23.79), we can say EXTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 13.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EXTR is on the same level as its industry peers.
62.50% of the companies in the same industry are more expensive than EXTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.87 | ||
| EV/EBITDA | 42.75 |
4.3 Compensation for Growth
EXTR's 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 EXTR's earnings are expected to grow with 19.77% in the coming years.
PEG (NY)0.9
PEG (5Y)0.36
EPS Next 2Y23.69%
EPS Next 3Y19.77%
5. Dividend
5.1 Amount
EXTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
16.92
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.42%
Inst Owner Change1.98%
Ins Owners3.2%
Ins Owner Change6.3%
Market Cap2.26B
Revenue(TTM)1.18B
Net Income(TTM)8.65M
Analysts82.86
Price Target24.74 (46.22%)
Short Float %7.07%
Short Ratio5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)4.66%
Min EPS beat(2)0.38%
Max EPS beat(2)8.93%
EPS beat(4)4
Avg EPS beat(4)8.99%
Min EPS beat(4)0.38%
Max EPS beat(4)14.74%
EPS beat(8)5
Avg EPS beat(8)-12.09%
EPS beat(12)9
Avg EPS beat(12)-5.28%
EPS beat(16)13
Avg EPS beat(16)-0.87%
Revenue beat(2)2
Avg Revenue beat(2)1.61%
Min Revenue beat(2)0.37%
Max Revenue beat(2)2.85%
Revenue beat(4)2
Avg Revenue beat(4)0.31%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)2.85%
Revenue beat(8)4
Avg Revenue beat(8)0.16%
Revenue beat(12)7
Avg Revenue beat(12)0.79%
Revenue beat(16)10
Avg Revenue beat(16)0.94%
PT rev (1m)1.75%
PT rev (3m)1.75%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 13.17 | ||
| P/S | 1.92 | ||
| P/FCF | 23.87 | ||
| P/OCF | 18.94 | ||
| P/B | 33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.75 |
EPS(TTM)0.89
EY5.26%
EPS(NY)1.29
Fwd EY7.6%
FCF(TTM)0.71
FCFY4.19%
OCF(TTM)0.89
OCFY5.28%
SpS8.83
BVpS0.51
TBVpS-2.52
PEG (NY)0.9
PEG (5Y)0.36
Graham Number3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 12.61% | ||
| ROCE | 5.83% | ||
| ROIC | 4.61% | ||
| ROICexc | 7.28% | ||
| ROICexgc | N/A | ||
| OM | 2.84% | ||
| PM (TTM) | 0.73% | ||
| GM | 61.61% | ||
| FCFM | 8.03% |
ROA(3y)-0.68%
ROA(5y)0.46%
ROE(3y)-94.85%
ROE(5y)-46.4%
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 3Y-33.94%
ROICexc growth 5YN/A
OM growth 3Y-37.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.18%
GM growth 5Y2.63%
F-Score9
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.32 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 129.4% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 227.1% | ||
| Profit Quality | 1096.16% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.17 |
F-Score9
WACC9.47%
ROIC/WACC0.49
Cap/Depr(3y)76.56%
Cap/Depr(5y)59.82%
Cap/Sales(3y)1.61%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)535.71%
EPS 3Y2.5%
EPS 5Y53.06%
EPS Q2Q%29.41%
EPS Next Y21.12%
EPS Next 2Y23.69%
EPS Next 3Y19.77%
EPS Next 5Y21.93%
Revenue 1Y (TTM)14.31%
Revenue growth 3Y0.83%
Revenue growth 5Y3.76%
Sales Q2Q%15.25%
Revenue Next Year10.9%
Revenue Next 2Y9.1%
Revenue Next 3Y8.29%
Revenue Next 5Y9.02%
EBIT growth 1Y147.29%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year28.52%
EBIT Next 3Y20.19%
EBIT Next 5Y16.01%
FCF growth 1Y-63.55%
FCF growth 3Y4.12%
FCF growth 5Y43.95%
OCF growth 1Y-56.58%
OCF growth 3Y5.85%
OCF growth 5Y33.47%
EXTREME NETWORKS INC / EXTR FAQ
What is the fundamental rating for EXTR stock?
ChartMill assigns a fundamental rating of 4 / 10 to EXTR.
What is the valuation status for EXTR stock?
ChartMill assigns a valuation rating of 5 / 10 to EXTREME NETWORKS INC (EXTR). This can be considered as Fairly Valued.
What is the profitability of EXTR stock?
EXTREME NETWORKS INC (EXTR) has a profitability rating of 4 / 10.
What is the expected EPS growth for EXTREME NETWORKS INC (EXTR) stock?
The Earnings per Share (EPS) of EXTREME NETWORKS INC (EXTR) is expected to grow by 21.12% in the next year.