NETGEAR
Market Cap
US$1.2b
Last Updated
2021/04/20 00:06 UTC
Data Sources
Company Financials +
Executive Summary
NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
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
Stable Share Price: NTGR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: NTGR's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-5.7%
NTGR
1.0%
US Communications
1.3%
US Market
1 Year Return
54.2%
NTGR
29.9%
US Communications
53.8%
US Market
Return vs Industry: NTGR exceeded the US Communications industry which returned 29.9% over the past year.
Return vs Market: NTGR exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| NTGR | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.7% | 1.0% | 1.3% |
| 30 Day | -10.8% | 6.5% | 5.1% |
| 90 Day | -1.7% | 12.4% | 8.9% |
| 1 Year | 54.2%54.2% | 33.2%29.9% | 56.6%53.8% |
| 3 Year | 0.7%-37.5% | 25.3%16.9% | 64.4%53.6% |
| 5 Year | 57.3%-2.4% | 107.5%84.2% | 120.4%95.7% |
Long-Term 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
4 weeks ago | Simply Wall St
Is NETGEAR's (NASDAQ:NTGR) 136% Share Price Increase Well Justified?1 month ago | Simply Wall St
Here's Why I Think NETGEAR (NASDAQ:NTGR) Is An Interesting Stock2 months ago | Simply Wall St
NETGEAR, Inc. (NASDAQ:NTGR) Stock Is Going Strong But Fundamentals Look Uncertain: What Lies Ahead ?Valuation
Is NETGEAR 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: NTGR ($39.27) is trading below our estimate of fair value ($1257.95)
Significantly Below Fair Value: NTGR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NTGR is good value based on its PE Ratio (20.1x) compared to the US Communications industry average (37.5x).
PE vs Market: NTGR is good value based on its PE Ratio (20.1x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NTGR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NTGR is good value based on its PB Ratio (1.7x) compared to the US Communications industry average (2.5x).
Future Growth
How is NETGEAR forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
5.2%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if NTGR's forecast earnings growth is above the savings rate (2%).
Earnings vs Market: Insufficient data to determine if NTGR'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: NTGR's revenue (5.2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: NTGR's revenue (5.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NTGR's Return on Equity is forecast to be low in 3 years time (13.5%).
Past Performance
How has NETGEAR performed over the past 5 years?
-22.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NTGR has high quality earnings.
Growing Profit Margin: NTGR's current net profit margins (4.6%) are higher than last year (2.6%).
Past Earnings Growth Analysis
Earnings Trend: NTGR's earnings have declined by 22.7% per year over the past 5 years.
Accelerating Growth: NTGR's earnings growth over the past year (127.7%) exceeds its 5-year average (-22.7% per year).
Earnings vs Industry: NTGR earnings growth over the past year (127.7%) exceeded the Communications industry -4%.
Return on Equity
High ROE: NTGR's Return on Equity (8.5%) is considered low.
Financial Health
How is NETGEAR's financial position?
Financial Position Analysis
Short Term Liabilities: NTGR's short term assets ($893.2M) exceed its short term liabilities ($365.1M).
Long Term Liabilities: NTGR's short term assets ($893.2M) exceed its long term liabilities ($51.6M).
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
Dividend
What is NETGEAR current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NTGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NTGR'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 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
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Patrick Lo (63 yo)
19.08yrs
Tenure
US$4,218,152
Compensation
Mr. C. S. Lo, also known as Patrick, co-founded Netgear Inc. and has also been its Chief Executive Officer since March 2002. Mr. Lo served as the President of Netgear Inc. from September 1999 to March 2002...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD4.22M) is above average for companies of similar size in the US market ($USD2.32M).
Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: NTGR's management team is seasoned and experienced (5.5 years average tenure).
Board Members
Experienced Board: NTGR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NTGR 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 4.4%.
Top Shareholders
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$1.182b
- Shares outstanding: 30.76m
- Website: https://www.netgear.com
Number of Employees
Location
- NETGEAR, Inc.
- 350 East Plumeria Drive
- San Jose
- California
- 95134
- United States
Listings
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/20 00:06 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.