Netgear, Inc.
NTGR
Telephone & Telegraph Apparatus
Mkt Cap
$400.1MPE
-3.52Debt
-Cash
$172.7MEV
-FCF
$57.48MP/E Ratio
-3.52Debt
-Cash
$172.7MEV
-FCF
$57.48MCharts data: {"Earnings":[{"time":"2014-12-30","value":8788000},{"time":"2015-12-30","value":48584000},{"time":"2016-12-30","value":75851000},{"time":"2017-12-30","value":19436000},{"time":"2018-12-30","value":-18329000},{"time":"2019-12-30","value":25791000},{"time":"2020-12-30","value":58293000},{"time":"2021-12-30","value":49387000},{"time":"2022-12-30","value":-68987000},{"time":"2023-12-30","value":-104767000}],"Sales":[{"time":"2014-12-30","value":1393515000},{"time":"2015-12-30","value":1300695000},{"time":"2016-12-30","value":1328298000},{"time":"2017-12-30","value":1406920000},{"time":"2018-12-30","value":1058816000},{"time":"2019-12-30","value":998763000},{"time":"2020-12-30","value":1255202000},{"time":"2021-12-30","value":1168073000},{"time":"2022-12-30","value":932472000},{"time":"2023-12-30","value":740840000}],"Net Margins":[{"time":"2014-12-30","value":0.006306354793453963},{"time":"2015-12-30","value":0.03735233855746351},{"time":"2016-12-30","value":0.057103902889261295},{"time":"2017-12-30","value":0.013814573678673983},{"time":"2018-12-30","value":-0.01731084532156673},{"time":"2019-12-30","value":0.025822942980466838},{"time":"2020-12-30","value":0.04644113059093277},{"time":"2021-12-30","value":0.04228074786421739},{"time":"2022-12-30","value":-0.07398291852195026},{"time":"2023-12-30","value":-0.14141650018897467}],"Assets":[{"time":"2014-12-30","value":1048687000},{"time":"2015-12-30","value":1050569000},{"time":"2016-12-30","value":1184456000},{"time":"2017-12-30","value":1208564000},{"time":"2018-12-30","value":1043376000},{"time":"2019-12-30","value":955813000},{"time":"2020-12-30","value":1106039000},{"time":"2021-12-30","value":1078531000},{"time":"2022-12-30","value":1019785000},{"time":"2023-12-30","value":847142000}],"Stockholders Equity":[{"time":"2014-12-30","value":721565000},{"time":"2015-12-30","value":708710000},{"time":"2016-12-30","value":796819000},{"time":"2017-12-30","value":730485000},{"time":"2018-12-30","value":627552000},{"time":"2019-12-30","value":608693000},{"time":"2020-12-30","value":689384000},{"time":"2021-12-30","value":696815000},{"time":"2022-12-30","value":620855000},{"time":"2023-12-30","value":535495000}],"ROE":[{"time":"2014-12-30","value":0.012179082965498604},{"time":"2015-12-30","value":0.0685527225522428},{"time":"2016-12-30","value":0.09519225821673429},{"time":"2017-12-30","value":0.02660698029391432},{"time":"2018-12-30","value":-0.029207141400234563},{"time":"2019-12-30","value":0.04237111318842175},{"time":"2020-12-30","value":0.08455809824422963},{"time":"2021-12-30","value":0.07087533993958224},{"time":"2022-12-30","value":-0.11111612212191252},{"time":"2023-12-30","value":-0.195645150748373}],"ROA":[{"time":"2014-12-30","value":0.026750593837818148},{"time":"2015-12-30","value":0.08124835208348999},{"time":"2016-12-30","value":0.09626951106668377},{"time":"2017-12-30","value":0.07163625592024915},{"time":"2018-12-30","value":0.04140789130668139},{"time":"2019-12-30","value":0.030938060059865265},{"time":"2020-12-30","value":0.06830138901069492},{"time":"2021-12-30","value":0.06174787743699532},{"time":"2022-12-30","value":-0.08043067901567487},{"time":"2023-12-30","value":-0.022588893007311643}]}
NETGEAR, Inc. engages in the design, development, and marketing of networking and Internet connected products for consumers, businesses, and service providers in the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and Small and Medium Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, Wi-Fi network adapters, and digital canvasses; and provides value-added service offerings, including security and privacy, technical support, parental controls, and cybersecurity protection. The Small and Medium Business segment provides Pro AV Solutions comprising switches that are engineered for AV over IP for both enterprise and home installation; enterprise grade cloud managed or standalone access points used in managing and controlling Wi-Fi that provides connections to smart phones, tablets, laptops and other computing devices at campuses, facilities, and offices; ethernet switches, are multiple port network devices used to connect devices using IP protocols; and NETGEAR Insight services, that helps small businesses to remotely deploy, monitor, manage and secure their networks easily and seamlessly. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store at www.netgear.com. The company was incorporated in 1996 and is headquartered in San Jose, California.
DCF
Discounted Cash Flow Valuation of Netgear, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $57.48M | $54M | $50.74M | $47.67M | $44.78M | $42.07M | $39.53M | $37.14M | $34.89M | $32.78M | $30.8M | $308M |
| DCF | $46.96M | $38.36M | $31.34M | $25.6M | $20.92M | $17.09M | $13.96M | $11.41M | $9.318M | $7.612M | $76.12M | |
| Value | $298.7M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth -4.7%
Earnings Stability -58%
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.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 3.7% | 5.7% | 1.4% | -1.7% | 2.6% | 4.6% | 4.2% | -7.4% | -14% | -16% |
| ROA | 8.1% | 9.6% | 7.2% | 4.1% | 3.1% | 6.8% | 6.2% | -8% | -2.3% | -3.4% |
| ROE | 6.9% | 9.5% | 2.7% | -2.9% | 4.2% | 8.5% | 7.1% | -11% | -20% | -22% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -1.97%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -2.64%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +1.66%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.89%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -2.3%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -3.73%.
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.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | - | - | - |
| Debt Equity | - | - | - | - | - | - | - | - | - | - |
| MIN | ||||||||||
| Graham Stability | - | - | 44% | -38% | 100% | 100% | 100% | -160% | -810% | -810% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is -.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -.
What is the Graham’s Stability?
Graham’s Stability measure stands at -8.12.
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.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | -8% | -6.9% | -16% | -21% | -1.6% |
| Net Income | - | - | - | - | -40% |
| Stockholders Equity | -5.5% | -3.1% | -8.1% | -14% | -1.2% |
| FCF | -12% | - | -33% | - | -19% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -6.89%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -1.63%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +41.72%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -40.34%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -3.12%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.2%.
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 -18.78%.