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EXTR

Extreme NetworksNasdaqGS:EXTR Stock Report

Last Price

US$12.49

Market Cap

US$1.6b

7D

-12.6%

1Y

60.4%

Updated

22 Jan, 2022

Data

Company Financials +
EXTR fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health1/6
Dividends0/6

EXTR Stock Overview

Extreme Networks, Inc. provides software-driven networking solutions worldwide.

Extreme Networks Competitors

Motorola Solutions

NYSE:MSI

US$40.1b

Ubiquiti

NYSE:UI

US$17.7b

F5

NasdaqGS:FFIV

US$13.5b

Ciena

NYSE:CIEN

US$10.1b

Price History & Performance

Summary of all time highs, changes and price drops for Extreme Networks
Historical stock prices
Current Share PriceUS$12.49
52 Week HighUS$16.61
52 Week LowUS$6.95
Beta1.89
1 Month Change-16.73%
3 Month Change27.84%
1 Year Change60.44%
3 Year Change84.49%
5 Year Change127.51%
Change since IPO-54.89%

Recent News & Updates

Jan 13
Is Extreme Networks (NASDAQ:EXTR) A Risky Investment?

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...

Dec 26
Are Investors Undervaluing Extreme Networks, Inc. (NASDAQ:EXTR) By 34%?

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

EXTRUS CommunicationsUS Market
7D-12.6%-7.7%-6.1%
1Y60.4%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

Is EXTR's price volatile compared to industry and market?
EXTR volatility
EXTR Average Weekly Movement7.6%
Communications Industry Average Movement7.6%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19962,441Ed Meyercordhttps://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

How do Extreme Networks's earnings and revenue compare to its market cap?
EXTR fundamental statistics
Market CapUS$1.62b
Earnings (TTM)US$23.44m
Revenue (TTM)US$1.04b

69.2x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EXTR income statement (TTM)
RevenueUS$1.04b
Cost of RevenueUS$435.59m
Gross ProfitUS$605.71m
ExpensesUS$582.26m
EarningsUS$23.44m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)0.18
Gross Margin58.17%
Net Profit Margin2.25%
Debt/Equity Ratio448.6%

How did EXTR perform over the long term?

See historical performance and comparison

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:13
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/06/30


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.