Capitalcube gives Extreme Networks, Inc. a score of 44.
Our analysis is based on comparing Extreme Networks, Inc. with the following peers – Brocade Communications Systems, Inc., Sonus Networks, Inc., ADTRAN, Inc., Cisco Systems, Inc., HP Inc., Juniper Networks, Inc., LM Ericsson Telefon AB Sponsored ADR Class B, Motorola Solutions, Inc. and Infinera Corporation (BRCD-US, SONS-US, ADTN-US, CSCO-US, HPQ-US, JNPR-US, ERIC-US, MSI-US and INFN-US).
Extreme Networks, Inc. has a fundamental score of 44 and has a relative valuation of OVERVALUED.
Access our research and ratings on Extreme Networks, Inc.
- With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
- It currently trades at a Price/Book ratio of (12.23).
- EXTR-US‘s EBITDA-based operating performance is relatively high as is its price to EBITDA multiple, which also implies higher future growth than most of its peers.
- EXTR-US has relatively low net profit margins while its asset efficiency is relatively high.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- EXTR-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
- Compared with the peers chosen, EXTR-US has had faster revenue growth in prior years and a current Price/EBITDA ratio that suggests faster growth in the future suggesting superior growth expectations.
- The company seems to be over-investing in a business with median returns.
- EXTR-US has the financial and operating capacity to borrow quickly.
Access our research and ratings on Extreme Networks, Inc.
Leverage & Liquidity
EXTR-US has the financial and operating capacity to borrow quickly.
- With debt at a relatively low 9.41% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 20.97%), and a well-cushioned interest coverage level of 5.21x, EXTR-US can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
- Of the 9 chosen peers for the company, only 8 of the stocks have an outstanding debt balance. Companies with no debt include SONS-US.
EXTR-US has moved to a Quick & Able from a Constrained profile at the prior year-end.
- EXTR-US‘s interest coverage is its highest over the last four years and compares to a low of -13.53x in 2015.
- While its interest coverage increased to 5.21x from -4.33x (in 2016), its peer median decreased during this period to 6.76x from 9.90x.
- Interest coverage rose 12.67 points relative to peers.
- EXTR-US‘s debt-EV continues to trend downward and is now over one standard deviation below its four-year average debt-EV of 23.47%.
- While its debt-EV decreased to 9.41% from 17.50% (in 2016), its peer median increased during this period to 20.97% from 17.94%.
- Relative to peers, debt-EV fell 11.12 percentage points.
Access the detailed analysis for Extreme Networks, Inc.
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Brocade Communications Systems, Inc.||27.58||2.78||2.74||25.68|
|Sonus Networks, Inc.||0||2.09||-214.51||999|
|Cisco Systems, Inc.||28.03||3.03||14.94||42.62|
|Juniper Networks, Inc.||22.37||2.48||9.88||51.54|
|LM Ericsson Telefon AB Sponsored ADR Class B||19.57||1.85||8.16||31.54|
|Motorola Solutions, Inc.||25.19||1.33||5.37||29.4|
|Extreme Networks, Inc.||9.41||1.27||5.21||47.44|
|Best In Class||2.81||3.36||83.1||999|
Looking for more metrics and analysis for Extreme Networks, Inc.?
Extreme Networks, Inc. engages in the development and sale of network infrastructure equipment. It offers related services contracts for extended warranty and maintenance to its enterprise, data center, and metropolitan telecommunications service provider customers. The company’s product categories include modular ethernet switching systems, stackable ethernet switching systems, wireless ethernet controllers and access points and centralized management software. Extreme Networks was founded by Gordon L. Stitt and Herb Schneider in May 1996 and is headquartered in San Jose, CA.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.