EXTREME NETWORKS INC (EXTR)
US30226D1063 - Common Stock
Taking everything into account, EXTR scores 2 out of 10 in our fundamental rating. EXTR was compared to 51 industry peers in the Communications Equipment industry. EXTR may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, EXTR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
EXTR had positive earnings in the past year.
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
EXTR has a worse Return On Assets (-11.84%) than 64.71% of its industry peers.
Looking at the Return On Equity, with a value of -382.46%, EXTR is doing worse than 92.16% of the companies in the same industry.
| 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 has a better Gross Margin (56.85%) than 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.
The number of shares outstanding for EXTR has been increased compared to 1 year ago.
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.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that EXTR is in the distress zone and has some risk of bankruptcy.
EXTR has a Altman-Z score (0.82) which is comparable to the rest of the industry.
EXTR has a Debt/Equity ratio of 5.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.33, EXTR is doing worse than 92.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.82 |
ROIC/WACCN/A
WACC9.51%
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.
With a Current ratio value of 0.91, EXTR is not doing good in the industry: 92.16% of the companies in the same industry are doing better.
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 Quick ratio of 0.63. This is amonst the worse of the industry: EXTR underperforms 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for EXTR have decreased strongly by -88.71% in the last year.
Measured over the past years, EXTR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.78% on average per year.
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
EXTR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.21% yearly.
The Revenue is expected to grow by 5.48% on average over the next years.
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
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 126.21, which means the current valuation is very expensive for EXTR.
Compared to the rest of the industry, the Price/Earnings ratio of EXTR is on the same level as its industry peers.
EXTR is valuated expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.45, the valuation of EXTR can be described as rather expensive.
EXTR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EXTR is cheaper than 68.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. EXTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.21 | ||
| Fwd PE | 17.45 |
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.
EXTR's earnings are expected to grow with 60.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y77.9%
EPS Next 3Y60.21%
5. Dividend
5.1 Amount
No dividends for EXTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EXTREME NETWORKS INC
NASDAQ:EXTR (12/26/2024, 10:14:50 AM)
17.67
-0.15 (-0.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.11%
Inst Owner Change-1.56%
Ins Owners2.88%
Ins Owner Change6.16%
Market Cap2.33B
Analysts76.92
Price Target19.72 (11.6%)
Short Float %4%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-62.09%
Min EPS beat(2)-162.25%
Max EPS beat(2)38.07%
EPS beat(4)1
Avg EPS beat(4)-33.17%
Min EPS beat(4)-162.25%
Max EPS beat(4)38.07%
EPS beat(8)5
Avg EPS beat(8)-12.42%
EPS beat(12)9
Avg EPS beat(12)-4.15%
EPS beat(16)12
Avg EPS beat(16)-0.03%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)1.3%
Revenue beat(8)5
Avg Revenue beat(8)1.03%
Revenue beat(12)8
Avg Revenue beat(12)1.15%
Revenue beat(16)11
Avg Revenue beat(16)1.14%
PT rev (1m)22.75%
PT rev (3m)22.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.18%
EPS NY rev (1m)0%
EPS NY rev (3m)4.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 126.21 | ||
| Fwd PE | 17.45 | ||
| P/S | 2.26 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 71.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.14
EY0.79%
EPS(NY)1.01
Fwd EY5.73%
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)-0.01
OCFYN/A
SpS7.82
BVpS0.25
TBVpS-2.83
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.84% | ||
| ROE | -382.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 56.85% | ||
| 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-Score3
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 74.8% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.82 |
F-Score3
WACC9.51%
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)-88.71%
EPS 3Y-17.51%
EPS 5Y-1.78%
EPS Q2Q%-51.43%
EPS Next Y145.44%
EPS Next 2Y77.9%
EPS Next 3Y60.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-24.46%
Revenue growth 3Y3.44%
Revenue growth 5Y2.33%
Sales Q2Q%-23.77%
Revenue Next Year1.06%
Revenue Next 2Y4.65%
Revenue Next 3Y5.48%
Revenue Next 5YN/A
EBIT growth 1Y-153.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.22%
EBIT Next 3Y26.51%
EBIT Next 5YN/A
FCF growth 1Y-118.18%
FCF growth 3Y-33.54%
FCF growth 5Y-14.59%
OCF growth 1Y-101.11%
OCF growth 3Y-27.32%
OCF growth 5Y-11.96%