Extreme Networks Stock Analysis, Valuation (NASDAQ:EXTR)
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 1.9/5
Amigobulls EXTR stock analysis uses latest quarter 2018 Q3 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?
- The Year Over Year (YoY) revenue growth for Extreme Networks was 76.2% in 2018-03.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 23.5.
- The Extreme Networks stock currently trades at a price to earnings ratio of 19.6, compared to the sector average of 26.2. We rate this as a positive.
- When compared with the Computer and Technology sector average PS ratio of 3, the price-to-sales ratio of 1.2 for EXTR stock is attractive.
Should you sell EXTR stock?
- Extreme Networks registered a negative operating margin of -2.29 (average) over the Trailing Twelve Months (TTM).
- Over the last 12 months, Extreme Networks had an average Net loss of -3.3%.
- With a debt/equity ratio of 1.58, Extreme Networks is highly leveraged in comparison to Computer and Technology peers.
- The company has a negative Return on Invested Capital of -8.2, which is a red flag.
- A negative ROE of -26.1 indicates that the company is not able to generate profits with the money shareholders have invested.
- The company has a negative free cash flow margin of -9.4.
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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.