Extreme Networks, Inc.

Extreme Networks provides software-driven networking solutions worldwide. The company designs, develops, and manufactures wired, wireless, and software-defined infrastructure equipment. Products include cloud network management solution ExtremeCloud IQ, Site Engine, Essentials, and wireless access points. It also offers ExtremeSwitching portfolio, SD-WAN solution, aggregation/core switches, data center switches, and routers. Cloud native platforms and applications are offered for service providers. The company markets products through distributors, resellers, and field sales organizations.

Overview

Sector

Communication Equipment

Target Price

1.1 USD

Current Price

17.0 USD

Potential

-94%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is -1.31 and it is lower than the sector mean.
The company has high returns. ROIC (62.42%) is higher than the sector mean (6.61%).
Price to free cash flow (18.30) is lower than the sector mean.

Weaknesses

With a depreciation Potential of -94.01%, based on our fundamental analysis, it suggests the stock may be overvalued.
Current Price to Earnings Ratio (100.00) is significantly higher than the sector mean (71.24).
Price to book ratio (35.52) is significantly higher than the sector mean (13.64).
Analysts expect revenues to decline in the coming year.
EV/EBIT (112.66) is significantly higher than the sector mean.
EBITDA Margin (3.59%) appears relatively low.

Indicator	Value
PER	100.0
EV/EBITDA	53.7
Price/Free Cash Flow'	17.7
ROIC	62.4%
Net Debt/EBITDA	-1.3

Extreme Networks, Inc.

Overview

Strengths

Weaknesses

Key Financial Data