NETGEAR (NasdaqGS:NTGR) - Share price, News & Analysis

NTGR fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

NTGR Stock Overview

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

Risk Analysis

No risks detected for NTGR from our risk checks.

NETGEAR Competitors

Inseego

NasdaqGS:INSG

US$219.1m

Franklin Wireless

NasdaqCM:FKWL

US$31.1m

Minim

NasdaqCM:MINM

US$23.8m

ParkerVision

OTCPK:PRKR

US$10.1m

Price History & Performance

Summary of all time highs, changes and price drops for NETGEAR
Historical stock prices
Current Share Price	US$18.99
52 Week High	US$41.96
52 Week Low	US$18.28
Beta	0.58
1 Month Change	-12.53%
3 Month Change	-26.57%
1 Year Change	-49.45%
3 Year Change	-27.02%
5 Year Change	-55.27%
Change since IPO	7.35%

Recent News & Updates

May 05

NETGEAR, Inc. (NASDAQ:NTGR) Analysts Are Way More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for NETGEAR, Inc. ( NASDAQ:NTGR ), with the analysts making...

Shareholder Returns

	NTGR	US Communications	US Market
7D	-5.9%	-11.2%	-4.0%
1Y	-49.5%	-13.9%	-13.2%

Return vs Industry: NTGR underperformed the US Communications industry which returned -14.1% over the past year.

Return vs Market: NTGR underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is NTGR's price volatile compared to industry and market?
NTGR volatility
NTGR Average Weekly Movement	4.5%
Communications Industry Average Movement	7.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: NTGR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NTGR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	771	Patrick Lo	https://www.netgear.com

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in two segments, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as Wi-Fi routers and home Wi-Fi systems, broadband modems, Wi-Fi gateways, Wi-Fi hotspots, Wi-Fi range extenders, Powerline adapters and bridges, Wi-Fi network adapters, and digital canvasses; and value-added service offerings, including technical support, parental controls, and cybersecurity protection.

NETGEAR Fundamentals Summary

How do NETGEAR's earnings and revenue compare to its market cap?
NTGR fundamental statistics
Market Cap	US$546.36m
Earnings (TTM)	-US$30.78m
Revenue (TTM)	US$1.06b

0.5x

P/S Ratio

-17.7x

P/E Ratio

Is NTGR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTGR income statement (TTM)
Revenue	US$1.06b
Cost of Revenue	US$746.91m
Gross Profit	US$313.80m
Other Expenses	US$344.58m
Earnings	-US$30.78m

Last Reported Earnings

Apr 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.07
Gross Margin	29.58%
Net Profit Margin	-2.90%
Debt/Equity Ratio	0%

How did NTGR perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.86x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NTGR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NTGR's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: NTGR is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Communications industry average.

PE vs Market: NTGR is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.

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 Price-To-Book Ratio (0.9x) compared to the US Communications industry average (1.7x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.1%

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 (1.9%).

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 (2.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: NTGR's revenue (2.1% 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 NTGR's Return on Equity is forecast to be high in 3 years time

Past Performance

How has NETGEAR performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NTGR is currently unprofitable.

Growing Profit Margin: NTGR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NTGR is unprofitable, but has reduced losses over the past 5 years at a rate of 11% per year.

Accelerating Growth: Unable to compare NTGR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NTGR is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (38.2%).

Return on Equity

High ROE: NTGR has a negative Return on Equity (-4.83%), as it is currently unprofitable.

Financial Health

How is NETGEAR's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NTGR's short term assets ($838.1M) exceed its short term liabilities ($317.5M).

Long Term Liabilities: NTGR's short term assets ($838.1M) exceed its long term liabilities ($59.5M).

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 Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NTGR has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure

CEO

Patrick Lo (64 yo)

20.17yrs

Tenure

US$5,221,876

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 ($USD5.22M) is above average for companies of similar size in the US market ($USD2.59M).

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

Leadership Team

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

Board Members

Experienced Board: NTGR's board of directors are considered experienced (3.5 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/04/03
Annual Earnings	2021/12/31