Extreme Networks
Market Cap
US$352.0m
Last Updated
2020/03/30 01:40 UTC
Data Sources
Company Financials +
Executive Summary
Extreme Networks, Inc. provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Imperfect balance sheet and overvalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
18.8%
EXTR
12.8%
US Communications
12.5%
US Market
1 Year Return
-61.4%
EXTR
-28.7%
US Communications
-12.7%
US Market
Return vs Industry: EXTR underperformed the US Communications industry which returned -28.7% over the past year.
Return vs Market: EXTR underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| EXTR | Industry | Market | |
|---|---|---|---|
| 7 Day | 18.8% | 12.8% | 12.5% |
| 30 Day | -41.0% | -4.5% | -14.7% |
| 90 Day | -59.7% | -18.9% | -21.5% |
| 1 Year | -61.4%-61.4% | -27.2%-28.7% | -10.9%-12.7% |
| 3 Year | -59.6%-59.6% | 9.6%2.7% | 12.6%5.4% |
| 5 Year | -8.6%-8.6% | 40.1%25.0% | 31.9%17.5% |
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
3 weeks ago | Simply Wall St
What Does Extreme Networks, Inc.'s (NASDAQ:EXTR) Share Price Indicate?1 month ago | Simply Wall St
Are Insiders Selling Extreme Networks, Inc. (NASDAQ:EXTR) Stock?1 month ago | Simply Wall St
Update: Extreme Networks (NASDAQ:EXTR) Stock Gained 82% In The Last Five YearsValuation
Is Extreme Networks undervalued compared to its fair value and its price relative to the market?
2.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: EXTR ($2.97) is trading below our estimate of fair value ($3.03)
Significantly Below Fair Value: EXTR is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: EXTR is unprofitable, so we can't compare its PE Ratio to the 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 (6.9x) compared to the US Communications industry average (1.3x).
Next Steps
Future Growth
How is Extreme Networks forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
1.4%
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 (1.7%).
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 (1.4% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: EXTR's revenue (1.4% 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
Next Steps
Past Performance
How has Extreme Networks performed over the past 5 years?
11.4%
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, but has reduced losses over the past 5 years at a rate of 11.4% 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 (-13.2%).
Return on Equity
High ROE: EXTR has a negative Return on Equity (-167.42%), as it is currently unprofitable.
Next Steps
Financial Health
How is Extreme Networks's financial position?
Financial Position Analysis
Short Term Liabilities: EXTR's short term assets ($417.6M) do not cover its short term liabilities ($423.0M).
Long Term Liabilities: EXTR's short term assets ($417.6M) do not cover its long term liabilities ($540.8M).
Debt to Equity History and Analysis
Debt Level: EXTR's debt to equity ratio (718.1%) is considered high.
Reducing Debt: EXTR's debt to equity ratio has increased from 66.4% to 718.1% over the past 5 years.
Balance Sheet
Inventory Level: EXTR has a high level of physical assets or inventory.
Debt Coverage by Assets: EXTR's debt is covered by short term assets (assets are 1.1x debt).
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 32.6% per year.
Next Steps
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 payouts.
High Dividend: Unable to evaluate EXTR'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 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 (54yo)
4.92s
Tenure
US$3,668,634
Compensation
Mr. Edward B. Meyercord, III, also known as Ed, has been the President and Chief Executive Officer of Extreme Networks, Inc. since April 19, 2015. Mr. Meyercord has extensive executive experience in leader ...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD3.67M) is above average for companies of similar size in the US market ($USD2.17M).
Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.92yrs | US$3.67m | 0.47% $1.6m | |
| Executive VP & CFO | 1.33yrs | US$2.64m | 0.077% $271.0k | |
| Chief Operating Officer | 0.50yr | US$886.60k | no data | |
| Chief Technology Officer | 6yrs | no data | no data | |
| Chief Administrative Officer & Corporate Secretary | 2.33yrs | US$1.37m | no data | |
| VP of Corporate Strategy & Investor Relations | no data | no data | no data | |
| Deputy General Counsel | no data | no data | no data | |
| Chief People Officer | 2.17yrs | no data | no data | |
| Senior Vice President of Sales-Americas | 3.58yrs | no data | no data | |
| Chief Product & Engineering Officer | 2.17yrs | no data | no data |
2.3yrs
Average Tenure
54yo
Average Age
Experienced Management: EXTR's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.92yrs | US$3.67m | 0.47% $1.6m | |
| Independent Chairman | 3yrs | US$291.00k | 0.34% $1.2m | |
| Independent Director | 16.17yrs | US$245.00k | 0.35% $1.2m | |
| Independent Director | 8.92yrs | US$240.50k | 0.33% $1.2m | |
| Independent Director | 4.33yrs | US$233.73k | 0.091% $321.6k | |
| Independent Director | 5.25yrs | US$248.00k | 0.13% $445.2k | |
| Director | 0.58yr | no data | 0.0041% $14.4k |
5.3yrs
Average Tenure
65yo
Average Age
Experienced Board: EXTR's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: EXTR 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 2.3%.
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$351.967m
- Shares outstanding: 118.51m
- Website: https://www.extremenetworks.com
Number of Employees
Location
- Extreme Networks, Inc.
- 6480 Via del Oro
- San Jose
- California
- 95119
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| EXTR | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Apr 1999 |
| EXM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1999 |
| 0IJW | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 1999 |
| EXM | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Apr 1999 |
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 infrastructure equipment; and develops the software for network management, policy, analytics, security, and access controls. The company offers edge/access switch portfolio that delivers Ethernet connectivity for the edge of the network; aggregation/core switches designed to address aggregation, top-of-rack, and campus core environments; and wireless access point products. It also provides VDX, MLX, and SLX data center family of switches; 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, analyses, 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 the education, healthcare, manufacturing, hospitality, transportation, and logistics sectors, as well as government agencies, private cloud data centers, universities, and stadiums; and enterprises and private cloud data centers. Extreme Networks, 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 | 2020/03/30 01:40 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.