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
Strengths
- The company has high returns. ROIC (26.07%) is higher than the sector mean (6.61%).
Weaknesses
- With a depreciation Potential of -100.00%, 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 (82.86) is significantly higher than the sector mean (13.64).
- Analysts expect revenues to decline in the coming year.
- The company has high debt. Net Debt to EBITDA Ratio (5.88) is higher than the sector mean.
- EV/EBITDA (404.54) is significantly higher than the sector mean (63.50).
- EBITDA Margin (0.47%) appears relatively low.
Key Financial Data
| Indicator | Value |
|---|
| PER | 100.0 |
| EV/EBITDA | 404.5 |
| Price/Free Cash Flow' | 56.1 |
| ROIC | 26.1% |
| Net Debt/EBITDA | 5.9 |