NETGEAR Inc.
Find Ratings ReportsNETGEAR INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. NETGEAR INC has strong liquidity. Currently, the Quick Ratio is 1.77 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 13.74% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 188.67 | 249.1 |
EBITDA ($mil) | 0.06 | -6.29 |
EBIT ($mil) | -1.62 | -8.51 |
Net Income ($mil) | -1.67 | -6.04 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 283.65 | 227.43 |
Total Assets ($mil) | 847.14 | 1019.79 |
Total Debt ($mil) | 41.57 | 45.1 |
Equity ($mil) | 535.5 | 620.86 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 35.67 | 25.66 |
EBITDA Margin | 0.02 | -2.52 |
Operating Margin | -0.86 | -3.42 |
Sales Turnover | 0.87 | 0.91 |
Return on Assets | -12.36 | -6.76 |
Return on Equity | -19.56 | -11.11 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.83 | 2.41 |
Debt/Capital | 0.07 | 0.07 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 29.62 | 28.91 |
Div / share | 0.0 | 0.0 |
EPS | -0.06 | -0.21 |
Book value / share | 18.08 | 21.48 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 235215.0 | 325873.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.81 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, NETGEAR INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NTGR NM | Peers 53.34 | NTGR 7.58 | Peers 44.47 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. NTGR's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NTGR is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NTGR 26.47 | Peers 26.06 | NTGR NA | Peers 1.95 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. NTGR is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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NTGR 0.81 | Peers 23.59 | NTGR -50.42 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NTGR is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, NTGR is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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NTGR 0.58 | Peers 14.13 | NTGR -20.56 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NTGR is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. NTGR significantly trails its peers on the basis of sales growth. |
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