Extreme Networks Stock Analysis, Valuation (NASDAQ:EXTR)

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$5.08 $0.26 (5.39%) EXTR stock closing price Oct 12, 2018 (Closing)

Watch the robo advisor video of Extreme Networks stock analysis on Amigobulls. Our EXTR analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

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 1.9/5

Amigobulls EXTR stock analysis uses latest quarter 2018 Q4 financial data like Extreme Networks revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Extreme Networks valuation 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 11 which is better than the sector average of 23.4.
  • EXTR stock is trading at a favorable price to sales multiple of 0.6 as against the Computer and Technology sector average multiple of 2.6.

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. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Extreme Networks revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of EXTR technical analysis to check whether the fundamental story is reflected in the market sentiment.