NasdaqGS:NTGR

Stock Analysis Report

Executive Summary

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has NETGEAR's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

NTGR

0.8%

US Communications

0.4%

US Market


1 Year Return

-41.4%

NTGR

1.5%

US Communications

6.9%

US Market

Return vs Industry: NTGR underperformed the US Communications industry which returned 1.5% over the past year.

Return vs Market: NTGR underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

NTGRIndustryMarket
7 Day1.3%0.8%0.4%
30 Day6.1%-4.1%-1.2%
90 Day19.6%-15.1%-0.4%
1 Year-5.5%-41.4%3.8%1.5%9.3%6.9%
3 Year-3.9%-40.4%52.1%42.6%45.8%36.4%
5 Year56.1%-3.2%91.0%71.0%62.9%45.1%

Price Volatility Vs. Market

How volatile is NETGEAR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NETGEAR undervalued compared to its fair value and its price relative to the market?

34.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NTGR ($31.83) is trading below our estimate of fair value ($48.31)

Significantly Undervalued: NTGR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NTGR is poor value based on its PE Ratio (34.1x) compared to the Communications industry average (30.4x).

PE vs Market: NTGR is poor value based on its PE Ratio (34.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: NTGR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: NTGR is good value based on its PB Ratio (1.6x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is NETGEAR forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTGR's forecast earnings growth (21.8% per year) is above the savings rate (2.7%).

Earnings vs Market: NTGR's earnings (21.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NTGR's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NTGR's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NTGR's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has NETGEAR performed over the past 5 years?

-15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NTGR's earnings have declined by -15.4% per year over the past 5 years.

Accelerating Growth: NTGR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NTGR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).


Return on Equity

High ROE: NTGR's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: NTGR's Return on Assets is below or equal to the Communications industry average last year.


Return on Capital Employed

ROCE Improving: NTGR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is NETGEAR's financial position?


Financial Position Analysis

Short Term Liabilities: NTGR's short term assets ($771.9M) exceeds its short term liabilities ($315.0M)

Long Term Liabilities: NTGR's short term assets (771.9M) exceeds its long term liabilities (55.4M)


Debt to Equity History and Analysis

Debt Level: NTGR is debt free.

Reducing Debt: NTGR has not had any debt for past 5 years.

Debt Coverage: NTGR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NTGR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NTGR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NTGR's debt is covered by short term assets.


Next Steps

Dividend

What is NETGEAR's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NTGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NTGR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NTGR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NTGR'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 NTGR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of NETGEAR's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Patrick Lo (62yo)

17.6yrs

Tenure

US$7,095,858

Compensation

Mr. C. S. Lo, also known as Patrick, co-founded Netgear Inc. and has also been its Chief Executive Officer since March 2002. Mr. Lo served as the President of Netgear Inc. from September 1999 to March 2002 ...


CEO Compensation Analysis

Compensation vs. Market: Patrick's total compensation ($USD7.10M) is above average for companies of similar size in the US market ($USD2.69M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: NTGR's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

63yo

Average Age

Experienced Board: NTGR's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$25,31616 Apr 19
David Henry
EntityIndividual
Shares749
Max PriceUS$33.80

Ownership Breakdown


Management Team

  • Patrick Lo (62yo)

    Co-Founder

    • Tenure: 17.6yrs
    • Compensation: US$7.10m
  • Michael Falcon (63yo)

    • Tenure: 10.8yrs
    • Compensation: US$2.66m
  • Mark Merrill (64yo)

    Co-Founder & CTO

    • Tenure: 0yrs
    • Compensation: US$275.22k
  • Michael Werdann (51yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 4yrs
    • Compensation: US$1.97m
  • Andrew Kim (48yo)

    Senior VP of Corporate Development

    • Tenure: 6.3yrs
    • Compensation: US$3.57m
  • John McHugh (58yo)

    Senior Vice President of SMB Products & Services

    • Tenure: 6.3yrs
    • Compensation: US$883.29k
  • Tamesa Rogers (45yo)

    Senior Vice President of Human Resources

    • Tenure: 6.3yrs
  • Chris Genualdi

    Director of Investor Relations & Corporate Development

    • Tenure: 0yrs
  • Bryan Murray (44yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: US$1.89m
  • Heidi Cormack

    Senior Vice President of Global Marketing

    • Tenure: 0yrs

Board Members

  • Janice Roberts (63yo)

    Director

    • Tenure: 0.7yrs
  • Barbara Scherer (63yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$274.97k
  • Jef Graham (63yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$252.47k
  • Tom Waechter (66yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$257.47k
  • Greg Rossmann (57yo)

    Independent Director

    • Tenure: 17.7yrs
    • Compensation: US$249.97k
  • Patrick Lo (62yo)

    Co-Founder

    • Tenure: 17.6yrs
    • Compensation: US$7.10m
  • Brad Maiorino (48yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$212.06k

Company Information

NETGEAR, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NETGEAR, Inc.
  • Ticker: NTGR
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$990.342m
  • Shares outstanding: 31.11m
  • Website: https://www.netgear.com

Number of Employees


Location

  • NETGEAR, Inc.
  • 350 East Plumeria Drive
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTGRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2003
NGJDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2003

Biography

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:52
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.