Extreme Networks
Market Cap
US$1.2b
Last Updated
2021/04/18 22:09 UTC
Data Sources
Company Financials +
Executive Summary
Extreme Networks, Inc. provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Slightly overvalued with imperfect balance sheet.
Similar Companies
Share Price & News
How has Extreme Networks's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
1.9%
EXTR
1.0%
US Communications
1.3%
US Market
1 Year Return
231.8%
EXTR
29.9%
US Communications
53.8%
US Market
Return vs Industry: EXTR exceeded the US Communications industry which returned 29.9% over the past year.
Return vs Market: EXTR exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| EXTR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.0% | 1.3% |
| 30 Day | 3.6% | 6.5% | 5.1% |
| 90 Day | 23.6% | 12.4% | 8.9% |
| 1 Year | 231.8%231.8% | 33.2%29.9% | 56.6%53.8% |
| 3 Year | -11.8%-11.8% | 25.3%16.9% | 64.4%53.6% |
| 5 Year | 199.7%199.7% | 107.5%84.2% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Extreme Networks's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Introducing Extreme Networks (NASDAQ:EXTR), The Stock That Zoomed 232% In The Last Year4 weeks ago | Simply Wall St
Extreme Networks (NASDAQ:EXTR) Is Making Moderate Use Of Debt1 month ago | Simply Wall St
Need To Know: Extreme Networks, Inc. (NASDAQ:EXTR) Insiders Have Been Buying SharesValuation
Is Extreme Networks undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EXTR ($9.59) is trading below our estimate of fair value ($20.38)
Significantly Below Fair Value: EXTR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: EXTR is unprofitable, so we can't compare its PE Ratio to the US Communications industry average.
PE vs Market: EXTR is unprofitable, so we can't compare its PE Ratio to the US market.
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 (66.1x) compared to the US Communications industry average (2.5x).
Future Growth
How is Extreme Networks forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
6.9%
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 (6.9% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: EXTR's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EXTR's Return on Equity is forecast to be very high in 3 years time (68.5%).
Past Performance
How has Extreme Networks performed over the past 5 years?
-31.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EXTR is currently unprofitable.
Growing Profit Margin: EXTR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: EXTR is unprofitable, and losses have increased over the past 5 years at a rate of 31% per year.
Accelerating Growth: Unable to compare EXTR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: EXTR is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-4%).
Return on Equity
High ROE: EXTR has a negative Return on Equity (-431.97%), as it is currently unprofitable.
Financial Health
How is Extreme Networks's financial position?
Financial Position Analysis
Short Term Liabilities: EXTR's short term assets ($403.3M) do not cover its short term liabilities ($422.2M).
Long Term Liabilities: EXTR's short term assets ($403.3M) do not cover its long term liabilities ($505.7M).
Debt to Equity History and Analysis
Debt Level: EXTR's debt to equity ratio (1950%) is considered high.
Reducing Debt: EXTR's debt to equity ratio has increased from 65.2% to 1950% over the past 5 years.
Balance Sheet
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.
Stable Cash Runway: Whilst unprofitable EXTR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: EXTR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.7% per year.
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?
2.0yrs
Average management tenure
CEO
Ed Meyercord (55 yo)
6yrs
Tenure
US$5,157,262
Compensation
Mr. Edward B. Meyercord, III, also known as Ed, has been the President and Chief Executive Officer of Extreme Networks, Inc. since April 19, 2015. Mr. Meyercord has extensive executive experience in leader...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD5.16M) is above average for companies of similar size in the US market ($USD2.32M).
Compensation vs Earnings: Ed's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: EXTR's management team is considered experienced (2 years average tenure).
Board Members
Experienced Board: EXTR's board of directors are considered experienced (6.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 4.5%.
Top Shareholders
Company Information
Extreme Networks, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Extreme Networks, Inc.
- Ticker: EXTR
- Exchange: NasdaqGS
- Founded: 1996
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$1.161b
- Shares outstanding: 123.81m
- Website: https://www.extremenetworks.com
Number of Employees
Location
- Extreme Networks, Inc.
- 6480 Via del Oro
- San Jose
- California
- 95119
- United States
Listings
Biography
Extreme Networks, Inc. provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide. It designs, develops, and manufactures wired and wireless network...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/18 22:09 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.