(NTGR) NETGEAR - NASDAQ
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 611m USD | Total Return: -16.8% in 12m
Avg Turnover: 9.98M
Qual. Beats: 7
Rev. Trend: -74.2%
Qual. Beats: 0
Warnings
High Debt while negative Cash Flow
Below Avwap Earnings
Tailwinds
No distinct edge detected
NETGEAR, Inc. is a U.S.-based networking hardware company operating through two segments: Enterprise and Consumer. Its product line includes Wi-Fi routers, home mesh systems, broadband modems, range extenders, and powerline adapters for residential users, alongside Ethernet switches, Wi-Fi access points, pro routers, and the NETGEAR Insight cloud-based remote management platform for commercial customers. The company also monetizes recurring revenue through value-added services such as security, technical support, and parental controls, and offers the Exium security solution, which combines an on-premises next-generation firewall with cloud-based secure access service edge (SASE) capabilities.
NETGEAR sells through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, managed service providers, broadband service providers, and its own direct online store, serving customers across the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company was incorporated in 1996, is headquartered in San Jose, California, and trades on NASDAQ under the ticker NTGR. Within the communications equipment subsector, NETGEAR competes with larger enterprise-focused vendors such as Cisco and HPE Aruba on the business side, and with TP-Link, ASUS, and Linksys in consumer networking; its dual-segment model allows it to participate in both the higher-margin SMB/pro AV market and the larger but more price-sensitive residential Wi-Fi hardware market.
- Consumer Wi-Fi demand softens after pandemic peak
- Enterprise Pro AV segment drives revenue and margin growth
- Tariff exposure pressures margins on China-sourced products
| 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 30.39%; Δ 7.13% > 0.5%) |
| Asset Turnover: 85.40% > 50% (prev 82.44%; Δ 2.96% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT 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 -27.9m / Avg Total Assets 808.1m) |
| D: 1.42 (Book Value of Equity 471.2m / Total Liabilities 330.8m) |
| Altman-Z'' = 2.15 = BBB |
| DSRI: 0.97 (Receivables 142.2m/142.7m, Revenue 690.1m/671.2m) |
| GMI: 0.81 (GM 30.39% / 37.52%) |
| 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 = -2.69 (Cap -4..+1) = A |
As of June 25, 2026, the stock is trading at USD 23.23 with a total of 260,542 shares traded. Over the past week, the price has changed by -5.30%, over one month by -10.96%, over three months by +5.30% and over the past year by -16.83%.
Current recommended Stop Loss: 21.10 (which is 9.2% or 1.9 ATR below the current price).
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 | 50.7% |
P/E Forward = 227.2727
P/S = 0.8776
P/B = 1.2971
P/EG = 0.7386
Revenue TTM = 690.1m USD
EBIT TTM = -27.9m USD
EBITDA TTM = -17.0m 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 = 362.7m USD (611.1m + Debt 48.1m - CCE 296.5m)
Interest Coverage Ratio = unknown (Ebit TTM -27.9m / Interest Expense TTM 0.0)
EV/FCF = -33.16x (Enterprise Value 362.7m / FCF TTM -10.9m)
FCF Yield = -3.02% (FCF TTM -10.9m / Enterprise Value 362.7m)
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 = 0.45 (Enterprise Value 362.7m / Total Assets 801.9m)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 48.1m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -22.0m (EBIT -27.9m * (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 = 14.61 (negative EBITDA) (Net Debt -248.4m / EBITDA -17.0m)
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 = -7.97% (Net Income TTM -39.8m / Total Stockholder Equity 499.7m)
RoCE = -5.18% (EBIT -27.9m / Capital Employed (Equity 499.7m + L.T.Debt 38.1m))
RoIC = -4.16% (negative operating profit) (NOPAT -22.0m / Invested Capital 528.7m)
WACC = 9.72% (E(611.1m)/V(659.2m) * Re(10.49%) + D(48.1m)/V(659.2m) * Rd(0.0%) * (1-Tc(0.21)))
Discount Rate = 10.49% (= 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: 1.13 | # QB: 7
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%