NETGEAR
Market Cap
US$990.3m
Last Updated
2019/10/19 23:52 UTC
Data Sources
Company Financials +
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
| NTGR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 0.8% | 0.4% |
| 30 Day | 6.1% | -4.1% | -1.2% |
| 90 Day | 19.6% | -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 Year | 56.1%-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
1 week ago | Simply Wall St
Why We Like NETGEAR, Inc.’s (NASDAQ:NTGR) 8.1% Return On Capital Employed1 month ago | Simply Wall St
Is NETGEAR, Inc.'s (NASDAQ:NTGR) CEO Being Overpaid?1 month ago | Simply Wall St
What You Must Know About NETGEAR, Inc.'s (NASDAQ:NTGR) Beta ValueValuation
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.
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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
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
| Entity | Individual |
| Shares | 749 |
| Max Price | US$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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NTGR | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 2003 |
| NGJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 23:52 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.