| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
EXTR Stock Overview
Extreme Networks, Inc. provides software-driven networking solutions worldwide.
Extreme Networks Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$12.49 |
| 52 Week High | US$16.61 |
| 52 Week Low | US$6.95 |
| Beta | 1.89 |
| 1 Month Change | -16.73% |
| 3 Month Change | 27.84% |
| 1 Year Change | 60.44% |
| 3 Year Change | 84.49% |
| 5 Year Change | 127.51% |
| Change since IPO | -54.89% |
Recent News & Updates
Is Extreme Networks (NASDAQ:EXTR) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Are Investors Undervaluing Extreme Networks, Inc. (NASDAQ:EXTR) By 34%?
How far off is Extreme Networks, Inc. ( NASDAQ:EXTR ) from its intrinsic value? Using the most recent financial data...
Shareholder Returns
| EXTR | US Communications | US Market | |
|---|---|---|---|
| 7D | -12.6% | -7.7% | -6.1% |
| 1Y | 60.4% | 22.0% | 4.2% |
Return vs Industry: EXTR exceeded the US Communications industry which returned 22% over the past year.
Return vs Market: EXTR exceeded the US Market which returned 4.2% over the past year.
Price Volatility
| EXTR volatility | |
|---|---|
| EXTR Average Weekly Movement | 7.6% |
| Communications Industry Average Movement | 7.6% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: EXTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: EXTR's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1996 | 2,441 | Ed Meyercord | https://www.extremenetworks.com |
Extreme Networks, Inc. provides software-driven networking solutions worldwide. It designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops software for network management, policy, analytics, security, and access controls. The company offers ExtremeCloud IQ, an ML/AI powered, wired, and wireless cloud network management solution that offers advanced visibility and control over users, devices, and applications; ExtremeCloud IQ – Site Engine that provides task automation, access control, granular visibility with real-time analytics and multi-vendor device management; and ExtremeCloud IQ Essentials offers WIPS, location services, IoT, and guest management services.
Extreme Networks Fundamentals Summary
| EXTR fundamental statistics | |
|---|---|
| Market Cap | US$1.62b |
| Earnings (TTM) | US$23.44m |
| Revenue (TTM) | US$1.04b |
69.2x
P/E Ratio1.6x
P/S RatioIs EXTR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EXTR income statement (TTM) | |
|---|---|
| Revenue | US$1.04b |
| Cost of Revenue | US$435.59m |
| Gross Profit | US$605.71m |
| Expenses | US$582.26m |
| Earnings | US$23.44m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 0.18 |
| Gross Margin | 58.17% |
| Net Profit Margin | 2.25% |
| Debt/Equity Ratio | 448.6% |
How did EXTR perform over the long term?
See historical performance and comparisonValuation
Is Extreme Networks undervalued compared to its fair value and its price relative to the market?
43.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EXTR ($12.49) is trading below our estimate of fair value ($22.02)
Significantly Below Fair Value: EXTR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EXTR is poor value based on its PE Ratio (69.2x) compared to the US Communications industry average (27.1x).
PE vs Market: EXTR is poor value based on its PE Ratio (69.2x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate EXTR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: EXTR is overvalued based on its PB Ratio (22.4x) compared to the US Communications industry average (1.8x).
Future Growth
How is Extreme Networks forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
6.6%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if EXTR's forecast earnings growth is above the savings rate (2%).
Earnings vs Market: Insufficient data to determine if EXTR's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: EXTR's revenue (6.6% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: EXTR's revenue (6.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if EXTR's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Extreme Networks performed over the past 5 years?
-18.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EXTR has high quality earnings.
Growing Profit Margin: EXTR became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: EXTR has become profitable over the past 5 years, growing earnings by -18.8% per year.
Accelerating Growth: EXTR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: EXTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (36.7%).
Return on Equity
High ROE: Whilst EXTR's Return on Equity (32.41%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Extreme Networks's financial position?
Financial Position Analysis
Short Term Liabilities: EXTR's short term assets ($424.2M) do not cover its short term liabilities ($455.1M).
Long Term Liabilities: EXTR's short term assets ($424.2M) do not cover its long term liabilities ($481.4M).
Debt to Equity History and Analysis
Debt Level: EXTR's net debt to equity ratio (184%) is considered high.
Reducing Debt: EXTR's debt to equity ratio has increased from 57.8% to 448.6% over the past 5 years.
Debt Coverage: EXTR's debt is well covered by operating cash flow (49.3%).
Interest Coverage: EXTR's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Dividend
What is Extreme Networks's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate EXTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate EXTR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if EXTR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if EXTR'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 EXTR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Ed Meyercord (56 yo)
6.75yrs
Tenure
US$5,569,901
Compensation
Mr. Edward B. Meyercord, III, also known as Ed, has been the President and Chief Executive Officer of Extreme Networks, Inc. since April 19, 2015. Mr. Meyercord has extensive executive experience in leader...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD5.57M) is above average for companies of similar size in the US market ($USD3.74M).
Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: EXTR's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: EXTR's board of directors are seasoned and experienced ( 10.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EXTR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.
Top Shareholders
Company Information
Extreme Networks, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Extreme Networks, Inc.
- Ticker: EXTR
- Exchange: NasdaqGS
- Founded: 1996
- Industry: Communications Equipment
- Sector: Tech
- Implied Market Cap: US$1.622b
- Shares outstanding: 129.88m
- Website: https://www.extremenetworks.com
Number of Employees
Location
- Extreme Networks, Inc.
- 2121 RDU Center Drive
- Suite 300
- Morrisville
- North Carolina
- 27560
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:13 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/06/30 |
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.