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NETGEAR INC (NTGR) Stock Fundamental Analysis

NASDAQ:NTGR - Nasdaq - US64111Q1040 - Common Stock - Currency: USD

26.2  -0.83 (-3.07%)

After market: 26.2 0 (0%)

Fundamental Rating

4

Overall NTGR gets a fundamental rating of 4 out of 10. We evaluated NTGR against 51 industry peers in the Communications Equipment industry. No worries on liquidiy or solvency for NTGR as it has an excellent financial health rating, but there are worries on the profitability. NTGR has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

NTGR had negative 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.
In multiple years NTGR reported negative operating cash flow during the last 5 years.
NTGR Yearly Net Income VS EBIT VS OCF VS FCFNTGR 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 50M -50M 100M -100M 150M

1.2 Ratios

Looking at the Return On Assets, with a value of 1.45%, NTGR is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
NTGR's Return On Equity of 2.28% is fine compared to the rest of the industry. NTGR outperforms 68.00% of its industry peers.
Industry RankSector Rank
ROA 1.45%
ROE 2.28%
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
NTGR Yearly ROA, ROE, ROICNTGR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

The Profit Margin of NTGR (1.83%) is better than 68.00% of its industry peers.
In the last couple of years the Profit Margin of NTGR has declined.
NTGR's Gross Margin of 29.08% is on the low side compared to the rest of the industry. NTGR is outperformed by 70.00% of its industry peers.
NTGR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM N/A
PM (TTM) 1.83%
GM 29.08%
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%
NTGR Yearly Profit, Operating, Gross MarginsNTGR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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8

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.
The number of shares outstanding for NTGR has been reduced compared to 5 years ago.
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.
NTGR Yearly Shares OutstandingNTGR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
NTGR Yearly Total Debt VS Total AssetsNTGR 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

An Altman-Z score of 1.92 indicates that NTGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 1.92, NTGR is doing good in the industry, outperforming 64.00% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.92
ROIC/WACCN/A
WACC9.33%
NTGR Yearly LT Debt VS Equity VS FCFNTGR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 2.81 indicates that NTGR has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.81, NTGR is doing good in the industry, outperforming 70.00% of the companies in the same industry.
NTGR has a Quick Ratio of 2.20. This indicates that NTGR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NTGR (2.20) is better than 74.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.2
NTGR Yearly Current Assets VS Current LiabilitesNTGR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

The earnings per share for NTGR have decreased strongly by -2933.33% in the last year.
NTGR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.46% yearly.
Looking at the last year, NTGR shows a decrease in Revenue. The Revenue has decreased by -9.05% in the last year.
Measured over the past years, NTGR shows a decrease in Revenue. The Revenue has been decreasing by -7.57% on average per year.
EPS 1Y (TTM)-2933.33%
EPS 3Y-36.02%
EPS 5Y-12.46%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y-16.76%
Revenue growth 5Y-7.57%
Sales Q2Q%-3.32%

3.2 Future

The Earnings Per Share is expected to grow by 34.10% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y12.57%
EPS Next 2Y34.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.3%
Revenue Next 2Y4.08%
Revenue Next 3YN/A
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.
NTGR Yearly Revenue VS EstimatesNTGR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B
NTGR Yearly EPS VS EstimatesNTGR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

NTGR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year NTGR is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
NTGR Price Earnings VS Forward Price EarningsNTGR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

NTGR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTGR is cheaper than 98.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.84
EV/EBITDA N/A
NTGR Per share dataNTGR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

A more expensive valuation may be justified as NTGR's earnings are expected to grow with 34.10% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.1%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

NTGR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NETGEAR INC

NASDAQ:NTGR (2/21/2025, 8:00:01 PM)

After market: 26.2 0 (0%)

26.2

-0.83 (-3.07%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)04-28 2025-04-28/amc
Inst Owners87.76%
Inst Owner Change-93.14%
Ins Owners5.72%
Ins Owner Change4.03%
Market Cap753.77M
Analysts80
Price Target29.58 (12.9%)
Short Float %3.6%
Short Ratio2.42
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)296.08%
Min EPS beat(2)75.49%
Max EPS beat(2)516.67%
EPS beat(4)4
Avg EPS beat(4)151.35%
Min EPS beat(4)2.83%
Max EPS beat(4)516.67%
EPS beat(8)7
Avg EPS beat(8)158.38%
EPS beat(12)10
Avg EPS beat(12)94.14%
EPS beat(16)12
Avg EPS beat(16)70.04%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)2.43%
Max Revenue beat(2)6.79%
Revenue beat(4)3
Avg Revenue beat(4)3.46%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)6.79%
Revenue beat(8)5
Avg Revenue beat(8)2.38%
Revenue beat(12)8
Avg Revenue beat(12)1.26%
Revenue beat(16)9
Avg Revenue beat(16)-0.53%
PT rev (1m)31.82%
PT rev (3m)31.82%
EPS NQ rev (1m)-37.04%
EPS NQ rev (3m)-27.59%
EPS NY rev (1m)26.42%
EPS NY rev (3m)26.42%
Revenue NQ rev (1m)-10.12%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-2.61%
Revenue NY rev (3m)-2.61%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1.12
P/FCF 4.84
P/OCF 4.57
P/B 1.39
P/tB 1.49
EV/EBITDA N/A
EPS(TTM)-0.91
EYN/A
EPS(NY)-0.8
Fwd EYN/A
FCF(TTM)5.42
FCFY20.67%
OCF(TTM)5.73
OCFY21.86%
SpS23.42
BVpS18.81
TBVpS17.55
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.45%
ROE 2.28%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 1.83%
GM 29.08%
FCFM 23.12%
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
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 3Y-24.3%
PM growth 5Y-6.61%
GM growth 3Y-2.44%
GM growth 5Y-0.26%
F-Score6
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 138.07%
Cap/Sales 1.33%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 1260.24%
Current Ratio 2.81
Quick Ratio 2.2
Altman-Z 1.92
F-Score6
WACC9.33%
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)-2933.33%
EPS 3Y-36.02%
EPS 5Y-12.46%
EPS Q2Q%-166.67%
EPS Next Y12.57%
EPS Next 2Y34.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.05%
Revenue growth 3Y-16.76%
Revenue growth 5Y-7.57%
Sales Q2Q%-3.32%
Revenue Next Year3.3%
Revenue Next 2Y4.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-244.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year34.32%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y205.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y189.87%
OCF growth 3YN/A
OCF growth 5Y64.94%