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.

Risks

  • NETGEAR has significant price volatility in the past 3 months.

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

-4.9%

NasdaqGS:NTGR

2.7%

US Communications

1.1%

US Market


1 Year Return

-49.1%

NasdaqGS:NTGR

1.6%

US Communications

2.1%

US Market

NTGR underperformed the Communications industry which returned 0.8% over the past year.

NTGR underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

NTGRIndustryMarket
7 Day-4.9%2.7%1.1%
30 Day-0.8%6.3%3.7%
90 Day29.6%-7.8%2.3%
1 Year-18.0%-49.1%3.9%1.6%4.4%2.1%
3 Year-9.6%-43.9%57.0%47.1%47.0%37.4%
5 Year64.4%2.0%90.1%70.3%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NETGEAR's share price is below the future cash flow value, and at a moderate discount (> 20%).

NETGEAR's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

NETGEAR is overvalued based on earnings compared to the US Communications industry average.

NETGEAR is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

NETGEAR is poor value based on expected growth next year.


Price Based on Value of Assets

NETGEAR is good value based on assets compared to the US Communications industry average.


Next Steps

Future Growth

How is NETGEAR expected 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 Estimates


Future Annual Growth Analysis

NETGEAR's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

NETGEAR's earnings are expected to grow significantly at over 20% yearly.

NETGEAR's revenue growth is positive but not above the United States of America market average.

NETGEAR's earnings growth is expected to exceed the United States of America market average.

NETGEAR's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NETGEAR is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

NETGEAR's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

NETGEAR has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

NETGEAR has become profitable in the last year making it difficult to compare the US Communications industry average.


Return on Equity

NETGEAR has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NETGEAR used its assets less efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

NETGEAR's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is NETGEAR's financial position?


Financial Position Analysis

NETGEAR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NETGEAR's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NETGEAR has no debt.

NETGEAR has not taken on any debt in the past 5 years.

NETGEAR has no debt, it does not need to be covered by operating cash flow.

NETGEAR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

NETGEAR has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate NETGEAR's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate NETGEAR's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as NETGEAR has not reported any payouts.

Unable to verify if NETGEAR's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as NETGEAR has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Patrick Lo (62yo)

17.5yrs

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

Patrick's remuneration is higher than average for companies of similar size in United States of America.

Patrick's compensation has increased in line with NETGEAR recently becoming profitable.


Management Age and Tenure

6.2yrs

Average Tenure

54.5yo

Average Age

The average tenure for the NETGEAR management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.1yrs

Average Tenure

63yo

Average Age

The tenure for the NETGEAR board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 17.5yrs
    • Compensation: US$7.10m
  • Michael Falcon (63yo)

    • Tenure: 10.7yrs
    • 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: 3.9yrs
    • Compensation: US$1.97m
  • Andrew Kim (48yo)

    Senior VP of Corporate Development

    • Tenure: 6.2yrs
    • Compensation: US$3.57m
  • John McHugh (58yo)

    Senior Vice President of SMB Products & Services

    • Tenure: 6.2yrs
    • Compensation: US$883.29k
  • Tamesa Rogers (45yo)

    Senior Vice President of Human Resources

    • Tenure: 6.2yrs
  • Chris Genualdi

    Director of Investor Relations & Corporate Development

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

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: US$1.89m
  • Heidi Cormack

    Senior Vice President of Global Marketing

    • Tenure: 0yrs

Board Members

  • Janice Roberts (63yo)

    Director

    • Tenure: 0.6yrs
  • Barbara Scherer (63yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$274.97k
  • Jef Graham (63yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: US$252.47k
  • Tom Waechter (66yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$257.47k
  • Greg Rossmann (57yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$249.97k
  • Patrick Lo (62yo)

    Co-Founder

    • Tenure: 17.5yrs
    • Compensation: US$7.10m
  • Brad Maiorino (48yo)

    Director

    • Tenure: 1.2yrs
    • 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$1.027b
  • 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 Analysis2019/09/16 23:47
End of Day Share Price2019/09/16 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.