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EXTREME NETWORKS INC (EXTR) Stock Fundamental Analysis

NASDAQ:EXTR - Nasdaq - US30226D1063 - Common Stock - Currency: USD

14.77  -0.68 (-4.4%)

After market: 15.65 +0.88 (+5.96%)

Fundamental Rating

2

Overall EXTR gets a fundamental rating of 2 out of 10. We evaluated EXTR against 51 industry peers in the Communications Equipment industry. EXTR has a bad profitability rating. Also its financial health evaluation is rather negative. EXTR is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

EXTR had positive earnings in the past year.
In the past year EXTR has reported a negative cash flow from operations.
In multiple years EXTR reported negative net income over the last 5 years.
EXTR had a positive operating cash flow in each of the past 5 years.
EXTR Yearly Net Income VS EBIT VS OCF VS FCFEXTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

EXTR has a Return On Assets of -11.26%. This is in the lower half of the industry: EXTR underperforms 68.00% of its industry peers.
Looking at the Return On Equity, with a value of -237.76%, EXTR is doing worse than 90.00% of the companies in the same industry.
Industry RankSector Rank
ROA -11.26%
ROE -237.76%
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
EXTR Yearly ROA, ROE, ROICEXTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K -1.5K -2K

1.3 Margins

With a decent Gross Margin value of 56.99%, EXTR is doing good in the industry, outperforming 78.00% of the companies in the same industry.
In the last couple of years the Gross Margin of EXTR has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for EXTR so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 56.99%
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%
EXTR Yearly Profit, Operating, Gross MarginsEXTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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1

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
The number of shares outstanding for EXTR has been increased compared to 5 years ago.
The debt/assets ratio for EXTR has been reduced compared to a year ago.
EXTR Yearly Shares OutstandingEXTR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
EXTR Yearly Total Debt VS Total AssetsEXTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

EXTR has an Altman-Z score of 0.63. 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 (0.63) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.34 is on the high side and indicates that EXTR has dependencies on debt financing.
EXTR has a worse Debt to Equity ratio (3.34) than 90.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.34
Debt/FCF N/A
Altman-Z 0.63
ROIC/WACCN/A
WACC9.34%
EXTR Yearly LT Debt VS Equity VS FCFEXTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

EXTR has a Current Ratio of 0.93. This is a bad value and indicates that EXTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.93, EXTR is doing worse than 90.00% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that EXTR may have some problems paying its short term obligations.
EXTR's Quick ratio of 0.68 is on the low side compared to the rest of the industry. EXTR is outperformed by 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.68
EXTR Yearly Current Assets VS Current LiabilitesEXTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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3. Growth

3.1 Past

EXTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -90.91%.
The Earnings Per Share has been decreasing by -1.78% on average over the past years.
EXTR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.49%.
EXTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)-90.91%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%-12.5%
Revenue 1Y (TTM)-24.49%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%-5.74%

3.2 Future

EXTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 59.23% yearly.
Based on estimates for the next years, EXTR will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y150.99%
EPS Next 2Y79.81%
EPS Next 3Y59.23%
EPS Next 5YN/A
Revenue Next Year1.32%
Revenue Next 2Y4.77%
Revenue Next 3Y6.03%
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.
EXTR Yearly Revenue VS EstimatesEXTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
EXTR Yearly EPS VS EstimatesEXTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6 0.8 1

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4. Valuation

4.1 Price/Earnings Ratio

EXTR is valuated quite expensively with a Price/Earnings ratio of 134.27.
Compared to the rest of the industry, the Price/Earnings ratio of EXTR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of EXTR to the average of the S&P500 Index (29.75), we can say EXTR is valued expensively.
A Price/Forward Earnings ratio of 14.28 indicates a correct valuation of EXTR.
74.00% of the companies in the same industry are more expensive than EXTR, based on the Price/Forward Earnings ratio.
EXTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.44.
Industry RankSector Rank
PE 134.27
Fwd PE 14.28
EXTR Price Earnings VS Forward Price EarningsEXTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
EXTR Per share dataEXTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

The 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 59.23% in the coming years.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y79.81%
EPS Next 3Y59.23%

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0

5. Dividend

5.1 Amount

No dividends for EXTR!.
Industry RankSector Rank
Dividend Yield N/A

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EXTREME NETWORKS INC

NASDAQ:EXTR (3/3/2025, 8:00:02 PM)

After market: 15.65 +0.88 (+5.96%)

14.77

-0.68 (-4.4%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-29 2025-01-29/bmo
Earnings (Next)04-29 2025-04-29/amc
Inst Owners92.7%
Inst Owner Change-2.82%
Ins Owners2.91%
Ins Owner Change1.4%
Market Cap1.96B
Analysts76.92
Price Target20.23 (36.97%)
Short Float %3.86%
Short Ratio5.3
Dividend
Industry RankSector 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)26.41%
Min EPS beat(2)14.74%
Max EPS beat(2)38.07%
EPS beat(4)2
Avg EPS beat(4)-28.23%
Min EPS beat(4)-162.25%
Max EPS beat(4)38.07%
EPS beat(8)5
Avg EPS beat(8)-12.12%
EPS beat(12)9
Avg EPS beat(12)-4.57%
EPS beat(16)13
Avg EPS beat(16)1.46%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)1.3%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)7
Avg Revenue beat(12)0.92%
Revenue beat(16)11
Avg Revenue beat(16)1.2%
PT rev (1m)2.59%
PT rev (3m)2.59%
EPS NQ rev (1m)1.1%
EPS NQ rev (3m)1.1%
EPS NY rev (1m)2.26%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE 134.27
Fwd PE 14.28
P/S 1.93
P/FCF N/A
P/OCF N/A
P/B 38.29
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.11
EY0.74%
EPS(NY)1.03
Fwd EY7%
FCF(TTM)-0.26
FCFYN/A
OCF(TTM)-0.11
OCFYN/A
SpS7.65
BVpS0.39
TBVpS-2.63
PEG (NY)0.89
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.26%
ROE -237.76%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 56.99%
FCFM 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
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 3YN/A
PM growth 5YN/A
GM growth 3Y-0.87%
GM growth 5Y0.4%
F-Score2
Asset Turnover0.94
Health
Industry RankSector Rank
Debt/Equity 3.34
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 76.02%
Cap/Sales 2.02%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.93
Quick Ratio 0.68
Altman-Z 0.63
F-Score2
WACC9.34%
ROIC/WACCN/A
Cap/Depr(3y)46.49%
Cap/Depr(5y)38.9%
Cap/Sales(3y)1.35%
Cap/Sales(5y)1.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-90.91%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%-12.5%
EPS Next Y150.99%
EPS Next 2Y79.81%
EPS Next 3Y59.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.49%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%-5.74%
Revenue Next Year1.32%
Revenue Next 2Y4.77%
Revenue Next 3Y6.03%
Revenue Next 5YN/A
EBIT growth 1Y-160.18%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year60.54%
EBIT Next 3Y31.16%
EBIT Next 5YN/A
FCF growth 1Y-120.32%
FCF growth 3Y-33.54%
FCF growth 5Y-14.59%
OCF growth 1Y-107.67%
OCF growth 3Y-27.32%
OCF growth 5Y-11.96%