Extreme Networks
Extreme Networks, Inc. provides software-driven networking solutions for enterprise customers worldwide. The last earnings update was 49 days ago. More info.
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- Extreme Networks has significant price volatility in the past 3 months.
EXTR Share Price and Events
7 Day Returns
1 Year Returns
EXTR Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Extreme Networks (EXTR) | -2.5% | -4.1% | 38.4% | -41.3% | 153.5% | 35.9% |
| US Communications | 1.7% | 5.5% | 21.9% | 13% | 77.2% | 86.1% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- EXTR underperformed the Communications industry which returned 13% over the past year.
- EXTR underperformed the Market in United States of America which returned 3% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Extreme Networks
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Extreme Networks.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 5 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Communications Unlevered Beta | Simply Wall St/ S&P Global | 1.08 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 21%) (20.84%)) |
1.176 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.18 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.176 * 5.96%) |
9.74% |
Discounted Cash Flow Calculation for NasdaqGS:EXTR using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Extreme Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.74%) |
|
|---|---|---|---|
| 2019 | 41.32 | Est @ 10.44% | 37.65 |
| 2020 | 44.68 | Est @ 8.13% | 37.10 |
| 2021 | 47.59 | Est @ 6.51% | 36.01 |
| 2022 | 50.15 | Est @ 5.38% | 34.58 |
| 2023 | 52.45 | Est @ 4.58% | 32.95 |
| 2024 | 54.56 | Est @ 4.03% | 31.24 |
| 2025 | 56.54 | Est @ 3.64% | 29.50 |
| 2026 | 58.44 | Est @ 3.37% | 27.78 |
| 2027 | 60.30 | Est @ 3.17% | 26.12 |
| 2028 | 62.13 | Est @ 3.04% | 24.53 |
| Present value of next 10 years cash flows | $317.46 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $62.13 × (1 + 2.73%) ÷ (9.74% – 2.73%) |
$910.46 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $910.46 ÷ (1 + 9.74%)10 |
$359.40 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $317.46 + $359.40 |
$676.86 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $676.86 / 116.76 |
$5.8 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $5.80 |
| Current discount | Discount to share price of
$7.53
= -1 x ($7.53 - $5.80) / $5.80 |
-29.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Extreme Networks is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Extreme Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Extreme Networks's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $-0.18 |
| NasdaqGS:EXTR Share Price ** | NasdaqGS (2019-03-20) in USD | $7.53 |
| United States of America Communications Industry PE Ratio | Median Figure of 33 Publicly-Listed Communications Companies | 30.4x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Extreme Networks.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:EXTR Share Price ÷ EPS (both in USD) = 7.53 ÷ -0.18 |
-41.55x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Extreme Networks is loss making, we can't compare its value to the US Communications industry average.
- Extreme Networks is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
Extreme Networks's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -41.55x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts |
187.8%per year |
| United States of America Communications Industry PEG Ratio | Median Figure of 21 Publicly-Listed Communications Companies | 1.37x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to calculate PEG ratio for Extreme Networks, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Extreme Networks's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $0.99 |
| NasdaqGS:EXTR Share Price * | NasdaqGS (2019-03-20) in USD | $7.53 |
| United States of America Communications Industry PB Ratio | Median Figure of 67 Publicly-Listed Communications Companies | 1.84x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:EXTR Share Price ÷ Book Value per Share (both in USD) = 7.53 ÷ 0.99 |
7.59x |
* Primary Listing of Extreme Networks.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Extreme Networks is overvalued based on assets compared to the US Communications industry average.
Value checks
We assess Extreme Networks's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check) Extreme Networks has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Extreme Networks's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Extreme Networks's earnings growth is expected to exceed the United States of America market average.
- Extreme Networks's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:EXTR Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts | 187.8% |
| NasdaqGS:EXTR Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts | 3.7% |
| United States of America Communications Industry Earnings Growth Rate | Market Cap Weighted Average | 15.2% |
| United States of America Communications Industry Revenue Growth Rate | Market Cap Weighted Average | 4.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 1,100 | 2 | ||
| 2020-06-30 | 1,062 | 25 | 5 | |
| 2019-06-30 | 1,013 | 1 | 5 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 1,033 | 66 | -21 |
| 2018-09-30 | 1,011 | 35 | -60 |
| 2018-06-30 | 983 | 19 | -47 |
| 2018-03-31 | 884 | 14 | -28 |
| 2017-12-31 | 771 | 54 | -19 |
| 2017-09-30 | 696 | 68 | 8 |
| 2017-06-30 | 607 | 59 | -2 |
| 2017-03-31 | 568 | 55 | -17 |
| 2016-12-31 | 543 | 36 | -23 |
| 2016-09-30 | 526 | 33 | -26 |
| 2016-06-30 | 520 | 30 | -36 |
| 2016-03-31 | 539 | 23 | -45 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
All data from Extreme Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | ||||
| 2020-06-30 | 0.25 | 0.25 | 0.25 | 1.00 |
| 2019-06-30 | 0.01 | 0.01 | 0.01 | 1.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | -0.18 |
| 2018-09-30 | -0.52 |
| 2018-06-30 | -0.41 |
| 2018-03-31 | -0.25 |
| 2017-12-31 | -0.17 |
| 2017-09-30 | 0.08 |
| 2017-06-30 | -0.02 |
| 2017-03-31 | -0.16 |
| 2016-12-31 | -0.22 |
| 2016-09-30 | -0.25 |
| 2016-06-30 | -0.35 |
| 2016-03-31 | -0.44 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Extreme Networks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Extreme Networks's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Extreme Networks has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Extreme Networks performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Extreme Networks does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
- Unable to compare Extreme Networks's 1-year earnings growth to the 5-year average as it is not currently profitable.
- Unable to compare Extreme Networks's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
All data from Extreme Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 1,032.87 | -21.11 | 335.37 | 207.13 |
| 2018-09-30 | 1,011.31 | -60.23 | 330.47 | 200.83 |
| 2018-06-30 | 983.14 | -46.79 | 317.86 | 183.88 |
| 2018-03-31 | 883.75 | -27.96 | 286.78 | 157.83 |
| 2017-12-31 | 770.94 | -19.32 | 250.00 | 131.60 |
| 2017-09-30 | 696.20 | 8.37 | 223.09 | 109.71 |
| 2017-06-30 | 607.08 | -1.74 | 200.49 | 93.72 |
| 2017-03-31 | 567.79 | -17.29 | 193.11 | 85.89 |
| 2016-12-31 | 543.48 | -23.10 | 191.98 | 80.05 |
| 2016-09-30 | 526.41 | -26.10 | 188.39 | 76.75 |
| 2016-06-30 | 519.83 | -36.36 | 187.58 | 78.72 |
| 2016-03-31 | 538.64 | -45.20 | 191.16 | 81.68 |
| 2015-12-31 | 533.34 | -57.97 | 192.83 | 86.68 |
| 2015-09-30 | 541.25 | -63.84 | 200.28 | 89.97 |
| 2015-06-30 | 552.94 | -71.64 | 211.39 | 93.45 |
| 2015-03-31 | 558.37 | -72.21 | 219.31 | 95.25 |
| 2014-12-31 | 580.54 | -73.72 | 226.25 | 95.66 |
| 2014-09-30 | 579.91 | -76.61 | 223.80 | 90.56 |
| 2014-06-30 | 519.55 | -57.31 | 197.48 | 77.15 |
| 2014-03-31 | 443.72 | -37.90 | 166.11 | 62.67 |
| 2013-12-31 | 370.16 | -15.06 | 137.16 | 47.78 |
| 2013-09-30 | 299.13 | -3.28 | 114.07 | 39.89 |
| 2013-06-30 | 299.34 | 9.67 | 113.93 | 40.52 |
| 2013-03-31 | 307.53 | 14.30 | 114.59 | 42.73 |
| 2012-12-31 | 312.69 | 18.89 | 115.87 | 43.72 |
| 2012-09-30 | 319.96 | 27.20 | 117.82 | 43.80 |
| 2012-06-30 | 322.72 | 15.87 | 118.83 | 45.64 |
| 2012-04-01 | 324.84 | 5.98 | 121.81 | 47.07 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Extreme Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
- It is difficult to establish if Extreme Networks has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
- It is difficult to establish if Extreme Networks improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
Past performance checks
We assess Extreme Networks's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Extreme Networks has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Extreme Networks's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Extreme Networks's finances.
The net worth of a company is the difference between its assets and liabilities.
- Extreme Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Extreme Networks's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Extreme Networks Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 115.87 | 183.26 | 141.07 |
| 2018-09-30 | 117.13 | 185.51 | 141.05 |
| 2018-06-30 | 112.73 | 197.76 | 122.60 |
| 2018-03-31 | 112.93 | 178.68 | 105.27 |
| 2017-12-31 | 111.72 | 183.14 | 128.21 |
| 2017-09-30 | 135.44 | 167.59 | 154.06 |
| 2017-06-30 | 125.68 | 92.70 | 130.45 |
| 2017-03-31 | 87.79 | 94.92 | 117.28 |
| 2016-12-31 | 85.82 | 97.15 | 103.79 |
| 2016-09-30 | 90.74 | 51.89 | 102.27 |
| 2016-06-30 | 90.20 | 55.07 | 94.12 |
| 2016-03-31 | 90.29 | 58.75 | 88.33 |
| 2015-12-31 | 95.14 | 62.00 | 85.87 |
| 2015-09-30 | 98.37 | 65.25 | 82.03 |
| 2015-06-30 | 104.24 | 66.88 | 76.23 |
| 2015-03-31 | 115.76 | 68.50 | 75.57 |
| 2014-12-31 | 134.12 | 89.13 | 109.29 |
| 2014-09-30 | 143.11 | 120.75 | 104.46 |
| 2014-06-30 | 156.71 | 121.56 | 105.88 |
| 2014-03-31 | 165.54 | 122.38 | 106.06 |
| 2013-12-31 | 184.39 | 99.19 | 112.02 |
| 2013-09-30 | 193.02 | 0.00 | 199.44 |
| 2013-06-30 | 189.15 | 0.00 | 138.84 |
| 2013-03-31 | 184.42 | 0.00 | 119.93 |
| 2012-12-31 | 188.31 | 0.00 | 124.97 |
| 2012-09-30 | 196.85 | 0.00 | 137.54 |
| 2012-06-30 | 179.64 | 0.00 | 77.95 |
| 2012-04-01 | 173.00 | 0.00 | 75.67 |
- Extreme Networks's level of debt (158.2%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (54% vs 158.2% today).
CASH RUNWAY ANALYSIS
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
- Whilst loss making Extreme Networks has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
- Whilst loss making Extreme Networks has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.1% per year.
Financial health checks
We assess Extreme Networks's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Extreme Networks has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Extreme Networks's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Extreme Networks
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Extreme Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Extreme Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 5 Analyst Estimates (S&P Global) | See Below |
| United States of America Communications Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-06-30 | ||
| 2020-06-30 | ||
| 2019-06-30 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Extreme Networks has not reported any payouts.
- Unable to verify if Extreme Networks's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Extreme Networks's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Extreme Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Extreme Networks has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $4,939,547 |
| AGE | 53 |
| TENURE AS CEO | 3.9 years |
CEO Bio
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 leadership, executive management, mergers and acquisitions, corporate strategy and corporate finance. He also has industry knowledge in healthcare, telecommunications and banking where he has worked in executive leadership roles. Mr. Meyercord co-founded Critical Alert Systems, LLC in July 2010 and served as its Chief Executive Officer. He serves as the President and Managing Partner of Council Rock Advisors LLC. He served as the Chief Executive Officer of Cavalier Telephone LLC since 2007 and served as its President. He served as the Chief Executive Officer and President of Cavalier Telephone Corporation. From December 2006 to January 2009, he served as the Chief Executive Officer and President of Cavalier Telephone LLC. From January 2004 to December 2006, he served as the Chief Executive Officer and President of Talk America, Inc. He served as the Chief Executive Officer of Talk America Holdings Inc. since January 1, 2004 and also as its President since May 2001. He served as the Chief Financial Officer of Talk America Holdings Inc. from August 1999 to December 2001 and as its Chief Operating Officer from January 2000 to May 2001. Mr. Meyercord joined Talk America Holdings Inc. in September 1996 as an Executive Vice President of Marketing and Corporate Development. He served as Vice President in the Global Telecommunications Corporate Finance Group/Vice President in the investment banking division of Salomon Brothers, Inc. He has a proven track record of leadership and business building within the telecommunications industry. He has been an Executive Director of Extreme Networks, Inc. since April 19, 2015. He worked in the corporate finance department of PaineWebber Incorporated. He served as an Independent Chairman of Extreme Networks from March 9, 2011 to August 2015 and served as its Independent Director from October 2009 to April 2015. He served as a Director of Critical Alert Systems, LLC. He served as a Director of Cavalier Telephone LLC and Magellan Hill Technologies LLC. He served as a Director of Tollgrade Communications Inc. from August 5, 2009 to May 10, 2011, Cavalier Telephone LLC from December 2006 to January 2009, Talk America, Inc. from January 2004 to December 2006 and of Talk America Holdings Inc. since May 2001. Mr. Meyercord holds a Master of Business Administration degree from the Stern School of Business at New York University and a Bachelor of Arts degree in economics from Trinity College.
CEO Compensation
- Ed's compensation has been consistent with company performance over the past year.
- Ed's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Extreme Networks management team in years:
- The tenure for the Extreme Networks management team is about average.
Management Team
Ed Meyercord
President
$5M
53
3.9 yrs
Bob Gault
Chief Revenue & Services Officer
$2M
55
1.6 yrs
Rémi Thomas
Chief Financial Officer
0.3 yrs
Eric Broockman
Chief Technology & Engineering Officer
63
5.1 yrs
Katy Motiey
Chief Administrative Officer & Corporate Secretary
$1M
1.3 yrs
Stan Kovler
Senior Director of Investor Relations & Finance
Gina Christopher
Deputy General Counsel
Norman Rice
Chief Marketing
$887K
44
2.6 yrs
Dean Chabrier
Chief People Officer
1.2 yrs
Stephen Patak
Senior Vice President of Sales-Americas
2.6 yrs
Board of Directors Tenure
Average tenure and age of the Extreme Networks board of directors in years:
- The tenure for the Extreme Networks board of directors is about average.
Board of Directors
John Shoemaker
Chairman
$291K
76
2.1 yrs
Ed Meyercord
President
$5M
53
9.4 yrs
Charlie Carinalli
Independent Director
$245K
70
15.2 yrs
Raj Khanna
Independent Director
$248K
72
4.3 yrs
Ed Kennedy
Independent Director
$241K
64
7.9 yrs
Kathleen Holmgren
Director
$231K
60
3.3 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 25. May 18 | Buy | Raj Khanna | Individual | 24. May 18 | 24. May 18 | 10,000 | $8.96 | $89,598 | ||
| 18. May 18 | Buy | Edward Kennedy | Individual | 17. May 18 | 18. May 18 | 50,000 | $9.13 | $451,553 | ||
| 17. May 18 | Buy | Kathleen Holmgren | Individual | 10. May 18 | 10. May 18 | 5,000 | $8.80 | $44,000 | ||
| 16. May 18 | Buy | Edward Meyercord | Individual | 14. May 18 | 14. May 18 | 20,000 | $8.42 | $168,400 | ||
| 16. May 18 | Buy | Edward Kennedy | Individual | 15. May 18 | 16. May 18 | 50,000 | $8.64 | $430,795 | ||
| 14. May 18 | Buy | John Shoemaker | Individual | 11. May 18 | 11. May 18 | 20,000 | $8.40 | $168,000 | ||
Management checks
We assess Extreme Networks's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Extreme Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Do Institutions Own Shares In Extreme Networks, Inc. (NASDAQ:EXTR)?
If you want to know who really controls Extreme Networks, Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership.
Simply Wall St - – Full articleIs Extreme Networks's Share Price Gain Of 187% Well Earned?
Extreme Networks isn't yet profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. … Extreme Networks's revenue trended up 28% each year over three years.
Simply Wall St - – Full articleExtreme Networks, Inc. (NASDAQ:EXTR) Is Trading At A 20.24% Discount
Today, I will calculate the stock's intrinsic value. … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
Simply Wall St - – Full articleDid Extreme Networks, Inc. (NASDAQ:EXTR) Insiders Buy Up More Shares?
Extreme Networks Insider Transactions Over The Last Year. … That means that even when the share price was higher, an insider wanted to purchase shares … We generally consider it a positive if insiders have been buying on market, even above the current price.
Simply Wall St - – Full articleWhat Is Extreme Networks, Inc.'s (NASDAQ:EXTR) Share Price Doing?
saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at Extreme Networks’s outlook and value based on the most recent financial data to see if the opportunity still exists
Simply Wall St - – Full articleWhy Extreme Networks Inc's (NASDAQ:EXTR) CEO Pay Matters To You
First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Ed Meyercord's Compensation Compare With Similar Sized Companies. … Our data indicates that Extreme Networks Inc is worth US$717m, and total annual CEO compensation is US$4.9m
Simply Wall St - – Full articleWhy You Need To Look At This Factor Before Buying Extreme Networks Inc (NASDAQ:EXTR)
Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Simply Wall St - – Full articleEstimating The Fair Value Of Extreme Networks Inc (NASDAQ:EXTR)
by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleExtreme Networks Inc (NASDAQ:EXTR): When Will It Breakeven?
Many investors are wondering the rate at which EXTR will turn a profit, with the big question being “when will the company breakeven?” … Below I will provide a high-level summary of the industry analysts’ expectations for EXTR … According to the industry analysts covering EXTR, breakeven is near.
Simply Wall St - – Full articleWhat Investors Should Know About Extreme Networks Inc's (NASDAQ:EXTR) Financial Strength
How does EXTR’s operating cash flow stack up against its debt? … On top of this, EXTR has generated cash from operations of US$59.28M in the last twelve months, resulting in an operating cash to total debt ratio of 63.95%, indicating that EXTR’s current level of operating cash is high enough to cover debt. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: Although EXTR’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.
Simply Wall St - – Full articleCompany Info
Description
Extreme Networks, Inc. provides software-driven networking solutions for enterprise customers worldwide. It designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops the software for network management, policy, analytics, security, and access controls. The company offers edge/access Ethernet switching systems that deliver Ethernet connectivity for edge of the network; aggregation/core Ethernet switching systems for aggregation, top-of-rack, and campus core environments; data center switching systems for enterprises and cloud data centers; and wireless access point products, as well as distributed Wi-Fi networks. It also provides ExtremeControl, a network access control solution that allows the enterprises to unify the security of their wired and wireless networks with visibility and control over users, devices, and applications; and ExtremeAnalytics, a network-powered application analytics and optimization solution, which captures, aggregates, analyzes, correlates, and reports network data that enables in decision making and enhancing business performance. In addition, the company offers ExtremeGuest and ExtremeLocation, which are cloud services that enable enterprises to incorporate location-based services; and ExtremeCloud, a wired and wireless cloud network management solution, which offers visibility and control over users and applications. It markets and sells its products through distributors, resellers, and field sales organizations. The company serves enterprises and organizations in education, healthcare, manufacturing, hospitality, transportation, and logistics, as well as government agencies, private cloud data centers, and universities. Extreme Networks, Inc. was founded in 1996 and is headquartered in San Jose, California.
Details
| Name: | Extreme Networks, Inc. |
| EXTR | |
| Exchange: | NasdaqGS |
| Founded: | 1996 |
| $879,199,931 | |
| 116,759,619 | |
| Website: | http://www.extremenetworks.com |
| Address: |
Extreme Networks, Inc. 6480 Via del Oro, San Jose, California, 95119, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | EXTR | Common Stock | Nasdaq Global Select | US | USD | 09. Apr 1999 | |
| DB | EXM | Common Stock | Deutsche Boerse AG | DE | EUR | 09. Apr 1999 | |
| LSE | 0IJW | Common Stock | London Stock Exchange | GB | USD | 09. Apr 1999 |
Number of employees
Current staff
Industry
| Communications Equipment | |
| Tech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:36 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/02/22 |
| Last earnings filing: | 2019/01/30 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
