NETGEAR, Inc. designs, develops, and markets networking technologies and Internet connected products for consumers, businesses, and service providers.
Flawless balance sheet with proven track record.
Share Price & News
How has NETGEAR's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NGJ's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NGJ underperformed the German Communications industry which returned -14.7% over the past year.
Return vs Market: NGJ underperformed the German Market which returned 6.5% over the past year.
Price Volatility Vs. Market
How volatile is NETGEAR's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is NETGEAR undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NGJ (€18.2) is trading below our estimate of fair value (€57.74)
Significantly Below Fair Value: NGJ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NGJ is poor value based on its PE Ratio (24.1x) compared to the Communications industry average (17.7x).
PE vs Market: NGJ is poor value based on its PE Ratio (24.1x) compared to the German market (20x).
Price to Earnings Growth Ratio
PEG Ratio: NGJ is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: NGJ is good value based on its PB Ratio (1x) compared to the DE Communications industry average (2.9x).
How is NETGEAR forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NGJ's forecast earnings growth (22.3% per year) is above the savings rate (-0.4%).
Earnings vs Market: NGJ's earnings (22.3% per year) are forecast to grow faster than the German market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NGJ's revenue (3.1% per year) is forecast to grow slower than the German market (5.1% per year).
High Growth Revenue: NGJ's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NGJ's Return on Equity is forecast to be low in 3 years time (7.7%).
How has NETGEAR performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NGJ has high quality earnings.
Growing Profit Margin: NGJ's current net profit margins (2.6%) are higher than last year (1.6%).
Past Earnings Growth Analysis
Earnings Trend: NGJ's earnings have declined by -8.1% per year over the past 5 years.
Accelerating Growth: NGJ's earnings growth over the past year (48.9%) exceeds its 5-year average (-8.1% per year).
Earnings vs Industry: NGJ earnings growth over the past year (48.9%) exceeded the Communications industry 31.6%.
Return on Equity
High ROE: NGJ's Return on Equity (4.2%) is considered low.
Return on Assets
Return on Capital Employed
How is NETGEAR's financial position?
Financial Position Analysis
Short Term Liabilities: NGJ's short term assets ($744.1M) exceed its short term liabilities ($298.4M).
Long Term Liabilities: NGJ's short term assets ($744.1M) exceed its long term liabilities ($48.7M).
Debt to Equity History and Analysis
Debt Level: NGJ is debt free.
Reducing Debt: NGJ has not had any debt for past 5 years.
Debt Coverage: NGJ has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: NGJ has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: NGJ has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if NGJ's debt is covered by short term assets.
What is NETGEAR's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NGJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NGJ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NGJ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NGJ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NGJ's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Patrick Lo (62yo)
Mr. C. S. Lo, also known as Patrick, co-founded Netgear Inc. and has also been its Chief Executive Officer since March 2002. Mr. Lo served as the President of Netgear Inc. from September 1999 to March 2002 ...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD7.10M) is above average for companies of similar size in the German market ($USD806.59K).
Compensation vs Earnings: Patrick's compensation has increased by more than 20% in the past year.
|Chief Financial Officer||1.5yrs||US$1.89m||0.011% $57.3k|
|Chief Operations Officer||11.1yrs||US$2.66m||0.087% $438.5k|
|Senior VP of Corporate Development||6.6yrs||US$3.57m||0.074% $375.7k|
|Senior Vice President of Worldwide Sales||4.3yrs||US$1.97m||0.0019% $9.4k|
|Co-Founder & CTO||0yrs||US$275.22k||0.068% $345.7k|
|Director of Investor Relations & Corporate Development||0yrs||no data||no data|
|Senior Vice President of Global Marketing||0yrs||no data||0.046% $230.7k|
|Senior Vice President of Human Resources||6.6yrs||no data||0.042% $212.9k|
|Senior Vice President of Connected Home Products||4.1yrs||US$1.49m||0.036% $182.4k|
Experienced Management: NGJ's management team is seasoned and experienced (6.6 years average tenure).
|Director||1yrs||no data||0.0050% $25.2k|
|Independent Director||8.5yrs||US$274.97k||0.041% $208.8k|
|Independent Director||14.6yrs||US$252.47k||0.017% $86.0k|
|Lead Independent Director||1.1yrs||US$257.47k||0.061% $310.9k|
|Independent Director||18yrs||US$249.97k||0.10% $531.8k|
|Director||0.08yrs||no data||no data|
|Independent Director||1.6yrs||US$212.06k||0.0096% $48.7k|
|Director||0.2yrs||no data||no data|
Experienced Board: NGJ's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NGJ insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
NETGEAR, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: NETGEAR, Inc.
- Ticker: NGJ
- Exchange: DB
- Founded: 1996
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$556.975m
- Listing Market Cap: US$506.457m
- Shares outstanding: 29.45m
- Website: https://www.netgear.com
Number of Employees
- NETGEAR, Inc.
- 350 East Plumeria Drive
- San Jose
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NTGR||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jul 2003|
|NGJ||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jul 2003|
NETGEAR, Inc. designs, develops, and markets networking technologies and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection. It also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. The company markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/28 21:14|
|End of Day Share Price||2020/02/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.