(NTGR) NETGEAR - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 658m USD | Total Return: -10.4% in 12m
Avg Turnover: 9.40M
Qual. Beats: 0
Rev. Trend: -74.2%
Qual. Beats: 0
Warnings
High Debt while negative Cash Flow
Altman Z'' -1.17 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
NETGEAR, Inc. (NTGR) designs and distributes networking hardware and software solutions globally, operating through its Enterprise and Consumer segments. The company’s portfolio includes Wi-Fi routers, mesh systems, broadband modems, and professional AV solutions, supported by software services for security, remote management, and parental controls.
As a player in the Communications Equipment sub-industry, NETGEAR relies on a multi-channel distribution model that involves wholesale distributors, direct-to-consumer online sales, and partnerships with broadband service providers. The business model increasingly emphasizes high-margin recurring revenue through value-added software services to complement its traditional hardware sales.
The networking sector is currently characterized by a transition toward Wi-Fi 7 standards and expanded demand for cloud-managed security services. Investors may find it useful to examine ValueRay for deeper insights into the company’s valuation metrics. Headquartered in San Jose, California, NETGEAR remains a key provider of both residential connectivity and enterprise-grade Ethernet infrastructure.
- High-margin service revenue growth offsets declining consumer hardware sales volume
- Pro AV Ethernet switch demand drives expansion in commercial enterprise segment
- Elevated inventory levels and supply chain costs pressure consolidated operating margins
- Global consumer spending slowdown reduces demand for premium home mesh systems
- Wi-Fi 7 product cycle adoption rates determine near-term revenue recovery trajectory
| Net Income: -39.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -17.45 > 1.0 |
| NWC/Revenue: 57.11% < 20% (prev 71.78%; Δ -14.67% < -1%) |
| CFO/TA 0.01 > 3% & CFO 12.0m > Net Income -39.8m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 2.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (28.0m) vs 12m ago -2.58% < -2% |
| Gross Margin: 37.52% > 18% (prev 0.30%; Δ 3.72k% > 0.5%) |
| Asset Turnover: 85.40% > 50% (prev 82.44%; Δ 2.96% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| A: 0.49 (Total Current Assets 642.8m - Total Current Liabilities 248.7m) / Total Assets 801.9m |
| B: -0.72 (Retained Earnings -576.1m / Total Assets 801.9m) |
| C: -0.03 (EBIT TTM -26.3m / Avg Total Assets 808.1m) |
| D: -1.74 (Book Value of Equity -576.1m / Total Liabilities 330.8m) |
| Altman-Z'' = -1.17 = CCC |
| DSRI: 0.97 (Receivables 142.2m/142.7m, Revenue 690.1m/671.2m) |
| GMI: 0.81 (GM 37.52% / 30.39%) |
| AQI: 1.88 (AQ_t 0.12 / AQ_t-1 0.07) |
| SGI: 1.03 (Revenue 690.1m / 671.2m) |
| TATA: -0.06 (NI -39.8m - CFO 12.0m) / TA 801.9m) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 24.88 with a total of 270,103 shares traded.
Over the past week, the price has changed by +4.20%,
over one month by +1.86%,
over three months by +27.99% and
over the past year by -10.44%.
NETGEAR has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy NTGR.
- StrongBuy: 0
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 35 | 40.7% |
P/S = 0.9451
P/B = 1.5649
P/EG = 0.7386
Revenue TTM = 690.1m USD
EBIT TTM = -26.3m USD
EBITDA TTM = -15.5m USD
Long Term Debt = 38.1m USD (estimated: total debt 48.1m - short term 9.98m)
Short Term Debt = 9.98m USD (from shortTermDebt, last quarter)
Debt = 48.1m USD (from shortLongTermDebtTotal, last quarter) (leases 48.1m already included)
Net Debt = -248.4m USD (calculated: Debt 48.1m - CCE 296.5m)
Enterprise Value = 409.7m USD (658.1m + Debt 48.1m - CCE 296.5m)
Interest Coverage Ratio = unknown (Ebit TTM -26.3m / Interest Expense TTM 0.0)
EV/FCF = -37.45x (Enterprise Value 409.7m / FCF TTM -10.9m)
FCF Yield = -2.67% (FCF TTM -10.9m / Enterprise Value 409.7m)
FCF Margin = -1.59% (FCF TTM -10.9m / Revenue TTM 690.1m)
Net Margin = -5.77% (Net Income TTM -39.8m / Revenue TTM 690.1m)
Gross Margin = 37.52% ((Revenue TTM 690.1m - Cost of Revenue TTM 431.2m) / Revenue TTM)
Gross Margin QoQ = 40.49% (prev 33.14%)
Tobins Q-Ratio = 0.51 (Enterprise Value 409.7m / Total Assets 801.9m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 48.1m)
Taxrate = 21.0% (US default 21%)
NOPAT = -20.8m (EBIT -26.3m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.58 (Total Current Assets 642.8m / Total Current Liabilities 248.7m)
Debt / Equity = 0.10 (Debt 48.1m / totalStockholderEquity, last quarter 471.2m)
Debt / EBITDA = 16.06 (negative EBITDA) (Net Debt -248.4m / EBITDA -15.5m)
Debt / FCF = 22.71 (negative FCF - burning cash) (Net Debt -248.4m / FCF TTM -10.9m)
Total Stockholder Equity = 499.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.93% (Net Income -39.8m / Total Assets 801.9m)
RoE = -3.70% (Net Income TTM -39.8m / Total Stockholder Equity 1.08b)
RoCE = -2.36% (EBIT -26.3m / Capital Employed (Equity 1.08b + L.T.Debt 38.1m))
RoIC = -7.80% (negative operating profit) (NOPAT -20.8m / Invested Capital 266.7m)
WACC = 9.75% (E(658.1m)/V(706.2m) * Re(10.46%) + D(48.1m)/V(706.2m) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 10.46% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: -2.51%
[DCF] Fair Price = unknown (Cash Flow -10.9m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.61 | # QB: 0
Revenue Correlation: -74.24 | Revenue CAGR: -5.88% | SUE: 0.03 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.01 | Chg30d=+129.56% | Revisions=-33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.04 | Chg30d=-33.33% | Revisions=+0% | Analysts=3
EPS current Year (2026-12-31): EPS=0.20 | Chg30d=+73.91% | Revisions=-33% | GrowthEPS=-54.5% | GrowthRev=-4.2%
EPS next Year (2027-12-31): EPS=0.61 | Chg30d=+3.41% | Revisions=-20% | GrowthEPS=+203.3% | GrowthRev=+8.0%
[Analyst] Revisions Ratio: -33%