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NTGR

NETGEARNasdaqGS:NTGR Stock Report

Market Cap

US$993.3m

7D

2.6%

1Y

9.8%

Updated

26 Sep, 2021

Data

Company Financials +
NTGR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends0/6

NTGR Overview

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

NETGEAR Competitors

Arista Networks

NYSE:ANET

US$27.6b

F5 Networks

NasdaqGS:FFIV

US$12.3b

Juniper Networks

NYSE:JNPR

US$9.3b

NetScout Systems

NasdaqGS:NTCT

US$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for NETGEAR
Historical stock prices
Current Share PriceUS$32.52
52 Week HighUS$27.17
52 Week LowUS$46.38
Beta0.58
1 Month Change-8.37%
3 Month Change-16.40%
1 Year Change9.83%
3 Year Change-48.26%
5 Year Change-46.24%
Change since IPO83.83%

Recent News & Updates

Shareholder Returns

NTGRUS CommunicationsUS Market
7D2.6%-0.1%0.1%
1Y9.8%49.1%35.3%

Return vs Industry: NTGR underperformed the US Communications industry which returned 49.1% over the past year.

Return vs Market: NTGR underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is NTGR's price volatile compared to industry and market?
NTGR volatility
NTGR Beta0.58
Industry Beta0.95
Market Beta1

Stable Share Price: NTGR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NTGR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996818Patrick Lohttps://www.netgear.com

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 Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi 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 CapUS$993.28m
Earnings (TTM)US$97.28m
Revenue (TTM)US$1.37b

10.2x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTGR income statement (TTM)
RevenueUS$1.37b
Cost of RevenueUS$943.02m
Gross ProfitUS$428.91m
ExpensesUS$331.63m
EarningsUS$97.28m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.18
Gross Margin31.26%
Net Profit Margin7.09%
Debt/Equity Ratio0%

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?

15.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTGR ($32.52) is trading below our estimate of fair value ($38.41)

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


Price To Earnings Ratio

PE vs Industry: NTGR is good value based on its PE Ratio (10.2x) compared to the US Communications industry average (22.6x).

PE vs Market: NTGR is good value based on its PE Ratio (10.2x) compared to the US market (17.9x).


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 (1.4x) compared to the US Communications industry average (2.2x).


Future Growth

How is NETGEAR forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

1.3%

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 (1.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: NTGR's revenue (1.3% 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 (11.9%).


Past Performance

How has NETGEAR performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTGR has high quality earnings.

Growing Profit Margin: NTGR's current net profit margins (7.1%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: NTGR's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: NTGR's earnings growth over the past year (601.7%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: NTGR earnings growth over the past year (601.7%) exceeded the Communications industry 63%.


Return on Equity

High ROE: NTGR's Return on Equity (13.5%) is considered low.


Financial Health

How is NETGEAR's financial position?


Financial Position Analysis

Short Term Liabilities: NTGR's short term assets ($911.8M) exceed its short term liabilities ($343.4M).

Long Term Liabilities: NTGR's short term assets ($911.8M) exceed its long term liabilities ($45.9M).


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?

3.8yrs

Average management tenure


CEO

Patrick Lo (64 yo)

19.5yrs

Tenure

US$5,002,294

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 ($USD5.00M) is above average for companies of similar size in the US market ($USD2.30M).

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 considered experienced (3.8 years average tenure).


Board Members

Experienced Board: NTGR's board of directors are not considered experienced ( 2.7 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: 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

NETGEAR, Inc.'s 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$993.278m
  • Shares outstanding: 30.54m
  • Website: https://www.netgear.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:15
End of Day Share Price2021/09/24 00:00
Earnings2021/06/27
Annual Earnings2020/12/31


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.