Netgear, Inc.

Utilities
Telecommunications Equipment
www.netgear.com

Earnings Score
Moat Score

Market Cap $709.30M
PE 36
Debt $NaN
Cash $273.77M
EV $NaN
FCF $190.89M

Earnings

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Sales & Net Margins

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Earnings	$19.58M
EBIT	$35.93M
ROE	4%
ROA	4%
FCF	$190.89M
Equity	$550.33M
Growth Stability	-812%
PE	36.23
PEG	30.9
PB	1.29
P/FCF	3.72
P/S	1.04
Price/Cash	0.39
Net Margins	4%
Gross Margins	30%
Op. Margins	5%
Earnings CAGR	-1%
Sales Growth YoY	-8%
Sales Growth QoQ	27%
Sales CAGR	-7%
FCF CAGR	-0%
Equity CAGR	-3%
Earnings Stability	0.01
Earnings Growth YoY	-200%

Earnings Growth QoQ	-288%
Earnings CAGR 5Y	1%
Sales CAGR 5Y	-11%
FCF CAGR 5Y	-1%
Equity CAGR 5Y	-5%
Earnings CAGR 3Y	-17%
Sales CAGR 3Y	-17%
FCF CAGR 3Y	10%
Equity CAGR 3Y	-11%
Market Cap	$709.30M
Revenue	$680.01M
Assets	$862.64M
Cash	$273.77M
Shares Outstanding	28.71M
Earnings Score	6%
Moat Score	53%
Working Capital	497.98M
Current Ratio	2.84
Gross Profit	$202.18M
Shares Growth 3y	-0%
Equity Growth QoQ	20%
Equity Growth YoY	3%

Assets & ROA

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Stockholders Equity & ROE

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Netgear Inc is a provider of networking solutions. The reportable segments of the company are connected home, and Small and Medium Business (SMB). The Connected Home segment focuses on consumers and consists of high-performance, dependable and easy-to-use 4G/5G mobile, Wi-Fi internet networking solutions and smart devices such as Orbi Voice smart speakers and Meural digital canvas; and SMB focused on small and medium-sized businesses and consists of business networking, storage, wireless LAN and security solutions that bring enterprise-class functionality to small and medium-sized businesses at an affordable price.

SEC Filings

Direct access to Netgear, Inc. (NTGR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
2022
- 10-K Dec 31
- 10-Q Oct 02
- 10-Q Jul 03
- 10-Q Apr 03

Sector Comparison

How does Netgear, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Netgear, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -1%

Stability 1%

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Netgear, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Netgear, Inc..

Years

Calculation mode

= $1.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$191M	$190M	$189M	$188M	$187M	$187M	$186M	$185M	$184M	$183M	$182M	$1.8B
DCF		$173M	$156M	$141M	$128M	$116M	$105M	$95M	$86M	$78M	$70M	$703M
Value	$1.9B

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	1%	4%	6%	1%	-2%	3%	5%	4%	-7%	-14%	4%
ROA	-	8%	10%	7%	4%	3%	7%	6%	-8%	-2%	4%
ROE	-	7%	10%	3%	-3%	4%	8%	7%	-11%	-20%	4%

Bad Net Margins (4.32%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	44%	-38%	100%	100%	100%	-155%	-812%	-812%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-812%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-7%	2%	6%	-25%	-6%	26%	-7%	-20%	-21%	-11%
Earnings YoY growth	-	453%	56%	-74%	-194%	-241%	126%	-15%	-240%	52%	1%
Equity YoY growth	-	-2%	12%	-8%	-14%	-3%	13%	1%	-11%	-14%	-5%
FCF YoY growth	-	8%	28%	-30%	-132%	-97%	-24K%	-108%	35%	-362%	-1%