Extreme Networks, Inc.
Extreme Networks, Inc. Fundamental Analysis
Extreme Networks, Inc. (EXTR) shows weak financial fundamentals with a PE ratio of 204.72, profit margin of 0.75%, and ROE of 12.12%. The company generates $1.2B in annual revenue with weak year-over-year growth of 2.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EXTR's fundamental strength across five key dimensions:
Efficiency Score
WeakEXTR struggles to generate sufficient returns from assets.
Valuation Score
WeakEXTR trades at a premium to fair value.
Growth Score
ModerateEXTR shows steady but slowing expansion.
Financial Health Score
WeakEXTR carries high financial risk with limited liquidity.
Profitability Score
WeakEXTR struggles to sustain strong margins.
Key Financial Metrics
Is EXTR Expensive or Cheap?
P/E Ratio
EXTR trades at 204.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EXTR's PEG of 44.49 indicates potential overvaluation.
Price to Book
The market values Extreme Networks, Inc. at 19.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.24 times EBITDA. This signals the market has high growth expectations.
How Well Does EXTR Make Money?
Net Profit Margin
For every $100 in sales, Extreme Networks, Inc. keeps $0.75 as profit after all expenses.
Operating Margin
Core operations generate 2.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.12 in profit for every $100 of shareholder equity.
ROA
Extreme Networks, Inc. generates $0.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Extreme Networks, Inc. produces operating cash flow of $148.97M, showing steady but balanced cash generation.
Free Cash Flow
Extreme Networks, Inc. generates strong free cash flow of $136.51M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.02 in free cash annually.
FCF Yield
EXTR converts 7.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
204.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
44.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
19.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.95
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How EXTR Stacks Against Its Sector Peers
| Metric | EXTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 204.72 | 35.19 | Worse (Expensive) |
| ROE | 12.12% | 1155.00% | Weak |
| Net Margin | 0.75% | -127067.00% (disorted) | Weak |
| Debt/Equity | 2.21 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.95 | 4.71 | Weak Liquidity |
| ROA | 0.78% | -314918.00% (disorted) | Weak |
EXTR outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Extreme Networks, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.88%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
94.67%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
283.60%
Industry Style: Growth, Innovation, High Beta
High Growth