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Extreme Networks Inc

EXTR

Computer Communications Equipment

Mkt Cap

$1.618B

PE

20.17

Debt

$192.3M

Cash

$221.4M

EV

$1.589B

FCF

$221.3M

Market Cap

$1.618B

P/E Ratio

20.17

Debt

$192.3M

Cash

$221.4M

EV

$1.589B

FCF

$221.3M
Charts data: {"Earnings":[{"time":"2014-06-29","value":-57310000},{"time":"2015-06-29","value":-71643000},{"time":"2016-06-29","value":-31884000},{"time":"2017-06-29","value":-8517000},{"time":"2018-06-29","value":-46792000},{"time":"2019-06-29","value":-25853000},{"time":"2020-06-29","value":-126845000},{"time":"2021-06-29","value":1936000},{"time":"2022-06-29","value":44271000},{"time":"2023-06-29","value":78074000}],"Sales":[{"time":"2014-06-29","value":519554000},{"time":"2015-06-29","value":552940000},{"time":"2016-06-29","value":528389000},{"time":"2017-06-29","value":607084000},{"time":"2018-06-29","value":983142000},{"time":"2019-06-29","value":995789000},{"time":"2020-06-29","value":948019000},{"time":"2021-06-29","value":1009418000},{"time":"2022-06-29","value":1112321000},{"time":"2023-06-29","value":1312454000}],"Net Margins":[{"time":"2014-06-29","value":-0.1103061471954792},{"time":"2015-06-29","value":-0.12956740333490072},{"time":"2016-06-29","value":-0.06034190719337458},{"time":"2017-06-29","value":-0.014029360022665726},{"time":"2018-06-29","value":-0.047594345476035},{"time":"2019-06-29","value":-0.02596232736051513},{"time":"2020-06-29","value":-0.13380006096924218},{"time":"2021-06-29","value":0.0019179368705531305},{"time":"2022-06-29","value":0.039800561168943135},{"time":"2023-06-29","value":0.05948703725997254}],"Assets":[{"time":"2014-06-29","value":526432000},{"time":"2015-06-29","value":428660000},{"time":"2016-06-29","value":374849000},{"time":"2017-06-29","value":483346000},{"time":"2018-06-29","value":770248000},{"time":"2019-06-29","value":756874000},{"time":"2020-06-29","value":979088000},{"time":"2021-06-29","value":1010093000},{"time":"2022-06-29","value":1068510000},{"time":"2023-06-29","value":1141707000}],"Stockholders Equity":[{"time":"2014-06-29","value":156712000},{"time":"2015-06-29","value":104235000},{"time":"2016-06-29","value":90197000},{"time":"2017-06-29","value":106707000},{"time":"2018-06-29","value":112732000},{"time":"2019-06-29","value":115987000},{"time":"2020-06-29","value":5398000},{"time":"2021-06-29","value":54468000},{"time":"2022-06-29","value":90343000},{"time":"2023-06-29","value":116752000}],"ROE":[{"time":"2014-06-29","value":-0.36570269028536423},{"time":"2015-06-29","value":-0.6873219168225644},{"time":"2016-06-29","value":-0.35349290996374605},{"time":"2017-06-29","value":-0.0798166943124631},{"time":"2018-06-29","value":-0.4150729162970585},{"time":"2019-06-29","value":-0.22289566934225388},{"time":"2020-06-29","value":-23.498517969618376},{"time":"2021-06-29","value":0.03554380553719615},{"time":"2022-06-29","value":0.49003243195377616},{"time":"2023-06-29","value":0.6687165958613128}],"ROA":[{"time":"2014-06-29","value":-0.0954197313233238},{"time":"2015-06-29","value":-0.14695562916997154},{"time":"2016-06-29","value":-0.06522626444248217},{"time":"2017-06-29","value":-0.00018827092807222984},{"time":"2018-06-29","value":-0.04248501781244482},{"time":"2019-06-29","value":-0.01754188940299178},{"time":"2020-06-29","value":-0.09880827872469074},{"time":"2021-06-29","value":0.03403250987780333},{"time":"2022-06-29","value":0.060072437319257654},{"time":"2023-06-29","value":0.09486934914124202}]}

Extreme Networks, Inc. provides software-driven networking solutions worldwide. It designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops software for network management, policy, analytics, security, and access controls. The company offers ExtremeCloud IQ, an ML/AI powered, wired, and wireless cloud network management solution that offers advanced visibility and control over users, devices, and applications; ExtremeCloud IQ – Site Engine that provides task automation, access control, granular visibility with real-time analytics and multi-vendor device management; and ExtremeCloud IQ Essentials offers WIPS, location services, IoT, and guest management services. It also provides wireless access point products; ExtremeSwitching portfolio that includes access edge products that offer physical presentations along with options to deliver Ethernet or convergence-friendly Power-over-Ethernet (POE), including high-power universal POE; ExtremeCloud SD-WAN, a software-defined wide area networks solution offers an all-inclusive subscription, which includes hardware, the cloud-based SD-WAN service, support and maintenance, and customer success support; aggregation/core switches designed to address aggregation, top-of-rack, and campus core environments; and data center switches and routers. In addition, the company offers cloud native platforms and applications for service providers; and customer support and services. It markets and sells its products through distributors, resellers, and field sales organizations to healthcare, education, government, manufacturing, retail, and hospitality markets. Extreme Networks, Inc. was incorporated in 1996 and is headquartered in Morrisville, North Carolina.

Sector

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$221.3M$287.6M$365.9M$455.4M$554M$658.7M$764.8M$866.8M$958.3M$1.033B$1.084B$10.84B
DCF$250.1M$276.7M$299.4M$316.8M$327.5M$330.7M$325.9M$313.3M$293.6M$268.1M$2.681B
Value$5.683B

In the chart Earnings are multiplied by this value.

Earnings Growth 93%
Earnings Stability -19%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years06-201506-201606-201706-201806-201906-202006-202106-202206-2023TTM
Net Margin-13%-6%-1.4%-4.8%-2.6%-13%0.19%4%5.9%6%
ROA-15%-6.5%-0.019%-4.2%-1.8%-9.9%3.4%6%9.5%10%
ROE-69%-35%-8%-42%-22%-2.3K%3.6%49%67%74%

What is the average Net Margin?

The average Net Margin over the past 5 years is -1.77%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +2.48%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +0.5%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +3.01%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -382.37%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +88.83%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years06-201506-201606-201706-201806-201906-202006-202106-202206-2023TTM
Debt FCF2.592.932.17-9.782.3121.212.913.031.100.87
Debt Equity0.750.810.991.851.6381.016.803.792.221.78
MIN
Graham Stability----------

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.87.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.09.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years06-201606-201806-202006-2022Trend
Revenue14%5.9%11%18%0.11%
Net Income---76%-2.1K%
Stockholders Equity3.8%0.7%180%29%36%
FCF38%-130%110%18%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +5.95%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.11%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.11K%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +0.7%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +36.16%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +18.22%.