NasdaqGS:EXTR

Stock Analysis Report

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Executive Summary

Extreme Networks, Inc. provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide. More Details


Snowflake Analysis

Mediocre balance sheet and slightly 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

EXTR

-3.3%

US Communications

-1.1%

US Market


1 Year Return

-36.7%

EXTR

-16.6%

US Communications

15.6%

US Market

Return vs Industry: EXTR underperformed the US Communications industry which returned -14% over the past year.

Return vs Market: EXTR underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

EXTRIndustryMarket
7 Day4.8%-3.3%-1.1%
30 Day19.1%0.04%4.2%
90 Day6.5%-16.1%6.3%
1 Year-36.7%-36.7%-14.3%-16.6%18.2%15.6%
3 Year-61.5%-61.5%12.2%4.7%39.6%30.4%
5 Year24.2%24.2%33.6%18.7%79.5%59.2%

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

Valuation

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 ($4.62) is trading below our estimate of fair value ($10.47)

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 (103.1x) compared to the US Communications industry average (1.7x).


Next Steps

Future Growth

How is Extreme Networks forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

2.3%

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 (2.2%).

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 (2.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: EXTR's revenue (2.3% 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 (45.4%).


Next Steps

Past Performance

How has Extreme Networks performed over the past 5 years?

-17.0%

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 17% 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 (-28.9%).


Return on Equity

High ROE: EXTR has a negative Return on Equity (-2349.85%), 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 ($414.2M) exceed its short term liabilities ($397.8M).

Long Term Liabilities: EXTR's short term assets ($414.2M) do not cover its long term liabilities ($575.9M).


Debt to Equity History and Analysis

Debt Level: EXTR's debt to equity ratio (7649.1%) is considered high.

Reducing Debt: EXTR's debt to equity ratio has increased from 64.2% to 7649.1% 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 24.3% 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 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?

1.9yrs

Average management tenure


CEO

Ed Meyercord (55 yo)

5.5yrs

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 ($USD5.16M) is above average for companies of similar size in the US market ($USD1.93M).

Compensation vs Earnings: Ed's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Meyercord
President5.5yrsUS$5.16m0.47%
$ 2.7m
Rémi Thomas
Executive VP & CFO1.92yrsUS$1.62m0.12%
$ 676.2k
Norman Rice
Chief Operating Officer1.08yrsUS$886.60kno data
Nabil Bukhari
CTO & Chief Product Officer0.25yrno datano data
Katayoun Motiey
Chief Sustainability Officer2.92yrsUS$1.37mno data
Stanley Kovler
Vice President of Strategy & Investor Relationsno datano datano data
Gina Christopher
Deputy General Counselno datano datano data
Wesley Durow
Chief Marketing Officer0.50yrno datano data
Dean Chabrier
Chief People Officer2.75yrsno datano data
Stephen Patak
Senior Vice President of Sales-Americas 4.17yrsno datano data
Pete Doolittle
Senior Vice President of Americas Sales0.92yrno datano data
John Morrison
Senior Vice President of EMEAno datano datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: EXTR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Edward Meyercord
President5.5yrsUS$5.16m0.47%
$ 2.7m
John Shoemaker
Independent Chairman3.67yrsUS$319.04k0.37%
$ 2.1m
Charles Carinalli
Independent Director16.75yrsUS$273.73k0.33%
$ 1.9m
Edward Kennedy
Independent Director9.5yrsUS$271.26k0.44%
$ 2.5m
Kathleen Holmgren
Independent Director4.92yrsUS$266.34k0.088%
$ 500.2k
Raj Khanna
Independent Director5.83yrsUS$278.65k0.14%
$ 784.9k
Ingrid Burton
Director1.17yrsUS$244.84k0.0040%
$ 22.4k

5.8yrs

Average Tenure

66yo

Average Age

Experienced Board: EXTR's board of directors are considered experienced (5.8 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 not been meaningfully diluted in the past year.


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$567.877m
  • Shares outstanding: 122.92m
  • Website: https://www.extremenetworks.com

Number of Employees


Location

  • Extreme Networks, Inc.
  • 6480 Via del Oro
  • San Jose
  • California
  • 95119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXTRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1999
EXMDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999
0IJWLSE (London Stock Exchange)YesCommon StockGBUSDApr 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:36
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.