Extreme Networks Stock Analysis, Valuation (NASDAQ:EXTR)

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$6.35 $0.09 (1.44%) EXTR stock closing price Aug 20, 2018 (Closing)

Watch the robo advisor video of Extreme Networks stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for EXTR stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Extreme Networks, Inc Stock Rating 2.7/5

Amigobulls EXTR stock analysis uses latest quarter 2018 Q4 financial data like Extreme Networks revenue growth, profit margins and cash flows. Extreme Networks valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Extreme Networks stock rating which is indicative of the company's financial performance.

Should you buy EXTR stock?

  • Extreme Networks sales grew by 76.2% year on year in 2018-03.
  • Revenue growth has been tremendous with a compounded annual growth of 23.5 over the last 5 years.
  • EXTR stock is trading at an earnings multiple of 13.6 which is better than the sector average of 25.8.
  • EXTR stock is trading at a favorable price to sales multiple of 0.7 as against the Computer and Technology sector average multiple of 2.9.

Should you sell EXTR stock?

  • Extreme Networks reported an average operating margin of -2.29 over the Last Twelve Months (LTM).
  • Extreme Networks posted an average Net loss of -3.3% in the last twelve months.
  • Extreme Networks is debt laden and has a high debt/equity ratio of 1.58.
  • Extreme Networks has a negative ROIC (Return on Invested Capital) of -8.2.
  • Extreme Networks has a negative ROE (Return On Equity) of -26.1, indicating the company is not profitable.
  • Extreme Networks has a negative FCF (Free Cash Flow) margin of -9.4.

Comments on this video and Extreme Networks stock

Amigobulls Extreme Networks stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of EXTR stock. Company's fundamentals remain one of the key driver of EXTR stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Extreme Networks revenue growth and profit or net income are two main metrics which help in identifying whether EXTR stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about EXTR stock.