EXTREME NETWORKS INC (EXTR)
US30226D1063 - Common Stock
Overall EXTR gets a fundamental rating of 2 out of 10. We evaluated EXTR against 51 industry peers in the Communications Equipment industry. Both the profitability and financial health of EXTR have multiple concerns. EXTR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EXTR was profitable.
EXTR had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EXTR reported negative net income in multiple years.
EXTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EXTR (-11.84%) is worse than 66.67% of its industry peers.
EXTR has a worse Return On Equity (-382.46%) than 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.84% | ||
| ROE | -382.46% | ||
| ROIC | N/A |
ROA(3y)0.91%
ROA(5y)-2%
ROE(3y)-74.7%
ROE(5y)-513.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EXTR's Gross Margin of 56.85% is fine compared to the rest of the industry. EXTR outperforms 78.43% of its industry peers.
EXTR's Gross Margin has been stable in the last couple of years.
EXTR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.85% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.87%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
EXTR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, EXTR has more shares outstanding
EXTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EXTR has been reduced compared to a year ago.
2.2 Solvency
EXTR has an Altman-Z score of 0.65. This is a bad value and indicates that EXTR is not financially healthy and even has some risk of bankruptcy.
EXTR's Altman-Z score of 0.65 is in line compared to the rest of the industry. EXTR outperforms 50.98% of its industry peers.
A Debt/Equity ratio of 5.33 is on the high side and indicates that EXTR has dependencies on debt financing.
EXTR's Debt to Equity ratio of 5.33 is on the low side compared to the rest of the industry. EXTR is outperformed by 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.65 |
ROIC/WACCN/A
WACC9.47%
2.3 Liquidity
EXTR has a Current 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 Current ratio of 0.91. This is amonst the worse of the industry: EXTR underperforms 90.20% of its industry peers.
A Quick Ratio of 0.63 indicates that EXTR may have some problems paying its short term obligations.
EXTR has a worse Quick ratio (0.63) than 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
EXTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -88.71%.
EXTR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.78% yearly.
Looking at the last year, EXTR shows a very negative growth in Revenue. The Revenue has decreased by -24.46% in the last year.
EXTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)-88.71%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%-51.43%
Revenue 1Y (TTM)-24.46%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%-23.77%
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 60.21% on average per year.
EXTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.48% yearly.
EPS Next Y145.44%
EPS Next 2Y77.9%
EPS Next 3Y60.21%
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y4.65%
Revenue Next 3Y5.48%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 111.86, which means the current valuation is very expensive for EXTR.
EXTR's Price/Earnings is on the same level as the industry average.
EXTR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
EXTR is valuated correctly with a Price/Forward Earnings ratio of 15.46.
68.63% of the companies in the same industry are more expensive than EXTR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EXTR to the average of the S&P500 Index (23.82), we can say EXTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.86 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 60.21% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y77.9%
EPS Next 3Y60.21%
5. Dividend
5.1 Amount
EXTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EXTREME NETWORKS INC
NASDAQ:EXTR (11/21/2024, 8:25:40 PM)
Premarket: 15.57 -0.09 (-0.57%)15.66
+0.23 (+1.49%)
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 Cap2.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 111.86 | ||
| Fwd PE | 15.46 | ||
| 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)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.84% | ||
| ROE | -382.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.85% | ||
| 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 Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-88.71%
EPS 3Y-17.51%
EPS 5Y
EPS Q2Q%
EPS Next Y145.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.46%
Revenue growth 3Y3.44%
Revenue growth 5Y
Sales 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