NETGEAR INC (NTGR)
US64111Q1040 - Common Stock
NTGR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 is valued expensive and it does not seem to be growing.
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.
The reported operating cash flow has been mixed in the past 5 years: NTGR reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 2.27%, NTGR is doing good in the industry, outperforming 72.55% of the companies in the same industry.
NTGR has a better Return On Equity (3.56%) than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.56% | ||
| ROIC | N/A |
ROA(3y)-4.85%
ROA(5y)-1.32%
ROE(3y)-7.86%
ROE(5y)-2.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of NTGR (2.88%) is better than 72.55% of its industry peers.
The Gross Margin of NTGR (29.73%) is worse than 70.59% of its industry peers.
In the last couple of years the Gross Margin of NTGR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 2.88% | ||
| GM | 29.73% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.3%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
NTGR does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NTGR has more shares outstanding
NTGR has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 2.00 indicates that NTGR is not a great score, but indicates only limited risk for bankruptcy at the moment.
NTGR has a Altman-Z score (2.00) which is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2 |
ROIC/WACCN/A
WACC9.75%
2.3 Liquidity
NTGR has a Current Ratio of 2.84. This indicates that NTGR is financially healthy and has no problem in meeting its short term obligations.
NTGR has a Current ratio of 2.84. This is in the better half of the industry: NTGR outperforms 68.63% of its industry peers.
NTGR has a Quick Ratio of 2.24. This indicates that NTGR is financially healthy and has no problem in meeting its short term obligations.
NTGR's Quick ratio of 2.24 is fine compared to the rest of the industry. NTGR outperforms 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
NTGR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -406.67%.
The Revenue for NTGR has decreased by -15.13% in the past year. This is quite bad
Measured over the past years, NTGR shows a decrease in Revenue. The Revenue has been decreasing by -6.89% on average per year.
EPS 1Y (TTM)-406.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-26.09%
Revenue 1Y (TTM)-15.13%
Revenue growth 3Y-16.12%
Revenue growth 5Y-6.89%
Sales Q2Q%-7.58%
3.2 Future
The Earnings Per Share is expected to decrease by -500.33% on average over the next years. This is quite bad
NTGR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.63% yearly.
EPS Next Y-3640%
EPS Next 2Y-500.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.62%
Revenue Next 2Y-2.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NTGR is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as NTGR's earnings are expected to decrease with -500.33% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-500.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NTGR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NETGEAR INC
NASDAQ:NTGR (1/14/2025, 8:00:02 PM)
After market: 26.2 -0.08 (-0.3%)26.28
+0.34 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner Change0%
Ins Owners5.48%
Ins Owner Change6.16%
Market Cap756.08M
Analysts80
Price Target22.44 (-14.61%)
Short Float %3.34%
Short Ratio2.32
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)2
Avg EPS beat(2)263.55%
Min EPS beat(2)10.43%
Max EPS beat(2)516.67%
EPS beat(4)4
Avg EPS beat(4)156.5%
Min EPS beat(4)2.83%
Max EPS beat(4)516.67%
EPS beat(8)7
Avg EPS beat(8)156.6%
EPS beat(12)9
Avg EPS beat(12)82.4%
EPS beat(16)12
Avg EPS beat(16)66.31%
Revenue beat(2)2
Avg Revenue beat(2)4.28%
Min Revenue beat(2)2.43%
Max Revenue beat(2)6.12%
Revenue beat(4)2
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)6.12%
Revenue beat(8)5
Avg Revenue beat(8)1.57%
Revenue beat(12)7
Avg Revenue beat(12)-0.69%
Revenue beat(16)9
Avg Revenue beat(16)-0.71%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)37.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.11 | ||
| P/FCF | 3.96 | ||
| P/OCF | 3.79 | ||
| P/B | 1.37 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.76
EYN/A
EPS(NY)-1.08
Fwd EYN/A
FCF(TTM)6.63
FCFY25.24%
OCF(TTM)6.94
OCFY26.4%
SpS23.64
BVpS19.13
TBVpS17.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.56% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 2.88% | ||
| GM | 29.73% | ||
| FCFM | 28.07% |
ROA(3y)-4.85%
ROA(5y)-1.32%
ROE(3y)-7.86%
ROE(5y)-2.18%
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 3Y4.3%
GM growth 5Y0.84%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 135.49% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 974.81% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 2 |
F-Score6
WACC9.75%
ROIC/WACCN/A
Cap/Depr(3y)69.88%
Cap/Depr(5y)67.46%
Cap/Sales(3y)0.75%
Cap/Sales(5y)0.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-406.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-26.09%
EPS Next Y-3640%
EPS Next 2Y-500.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.13%
Revenue growth 3Y-16.12%
Revenue growth 5Y-6.89%
Sales Q2Q%-7.58%
Revenue Next Year-10.62%
Revenue Next 2Y-2.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-80.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-308.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1690.56%
FCF growth 3Y-33.15%
FCF growth 5YN/A
OCF growth 1Y4172.82%
OCF growth 3Y-32.05%
OCF growth 5YN/A