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Extreme Networks

Nasdaq:EXTR
Snowflake Description

Moderate growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EXTR
Nasdaq
$844M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Extreme Networks, Inc. provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide. The last earnings update was 10 days ago. More info.


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EXTR Share Price and Events
7 Day Returns
6.4%
NasdaqGS:EXTR
4.7%
US Communications
0.9%
US Market
1 Year Returns
5.6%
NasdaqGS:EXTR
1.1%
US Communications
10.5%
US Market
EXTR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Extreme Networks (EXTR) 6.4% -5.3% -11.1% 5.6% 52.9% 85.1%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • EXTR outperformed the Communications industry which returned 1.1% over the past year.
  • EXTR underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
EXTR
Industry
5yr Volatility vs Market

Value

 Is Extreme Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Extreme Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Extreme Networks.

NasdaqGS:EXTR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:EXTR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (53.25%))
1.407
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.407 * 5.96%)
11.11%

Discounted Cash Flow Calculation for NasdaqGS:EXTR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Extreme Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:EXTR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.11%)
2020 38.94 Est @ -6.64% 35.04
2021 37.45 Est @ -3.83% 30.33
2022 36.75 Est @ -1.86% 26.79
2023 36.57 Est @ -0.48% 23.99
2024 36.75 Est @ 0.48% 21.70
2025 37.17 Est @ 1.15% 19.75
2026 37.78 Est @ 1.63% 18.07
2027 38.52 Est @ 1.96% 16.58
2028 39.36 Est @ 2.19% 15.25
2029 40.29 Est @ 2.35% 14.04
Present value of next 10 years cash flows $221.00
NasdaqGS:EXTR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $40.29 × (1 + 2.73%) ÷ (11.11% – 2.73%)
$493.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $493.64 ÷ (1 + 11.11%)10
$172.08
NasdaqGS:EXTR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $221.00 + $172.08
$393.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $393.08 / 121.57
$3.23
NasdaqGS:EXTR Discount to Share Price
Calculation Result
Value per share (USD) From above. $3.23
Current discount Discount to share price of $6.94
= -1 x ($6.94 - $3.23) / $3.23
-114.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Extreme Networks is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Extreme Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Extreme Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:EXTR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-0.46
NasdaqGS:EXTR Share Price ** NasdaqGS (2019-11-08) in USD $6.94
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Extreme Networks.

NasdaqGS:EXTR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:EXTR Share Price ÷ EPS (both in USD)

= 6.94 ÷ -0.46

-15.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Extreme Networks is loss making, we can't compare its value to the US Communications industry average.
  • Extreme Networks is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Extreme Networks's expected growth come at a high price?
Raw Data
NasdaqGS:EXTR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -15.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
Not available
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Extreme Networks, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Extreme Networks's assets?
Raw Data
NasdaqGS:EXTR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $0.77
NasdaqGS:EXTR Share Price * NasdaqGS (2019-11-08) in USD $6.94
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:EXTR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:EXTR Share Price ÷ Book Value per Share (both in USD)

= 6.94 ÷ 0.77

8.98x

* Primary Listing of Extreme Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Extreme Networks is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Extreme Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Extreme Networks has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Extreme Networks expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
132.5%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is Extreme Networks expected to grow at an attractive rate?
  • Extreme Networks's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Extreme Networks's earnings growth is expected to exceed the United States of America market average.
  • Extreme Networks's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:EXTR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:EXTR Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 132.5%
NasdaqGS:EXTR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.4%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:EXTR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:EXTR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 1,161 2
2021-06-30 1,138 5
2020-06-30 1,088 5
2019-11-10
NasdaqGS:EXTR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 1,011 70 -55
2019-06-30 996 105 -26
2019-03-31 1,022 100 -14
2018-12-31 1,033 66 -21
2018-09-30 1,011 35 -60
2018-06-30 983 19 -47
2018-03-31 884 14 -28
2017-12-31 771 54 -19
2017-09-30 696 68 8
2017-06-30 607 59 -2
2017-03-31 568 55 -17
2016-12-31 543 36 -23

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Extreme Networks's earnings are expected to grow significantly at over 20% yearly.
  • Extreme Networks's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:EXTR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Extreme Networks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EXTR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 0.17 0.17 0.17 1.00
2020-06-30 -0.23 -0.23 -0.23 1.00
2019-11-10
NasdaqGS:EXTR Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -0.46
2019-06-30 -0.22
2019-03-31 -0.12
2018-12-31 -0.18
2018-09-30 -0.52
2018-06-30 -0.41
2018-03-31 -0.25
2017-12-31 -0.17
2017-09-30 0.08
2017-06-30 -0.02
2017-03-31 -0.16
2016-12-31 -0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Extreme Networks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Extreme Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Extreme Networks has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Extreme Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Extreme Networks's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Extreme Networks does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Extreme Networks's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Extreme Networks's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
Extreme Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Extreme Networks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EXTR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,011.41 -54.53 347.12 218.01
2019-06-30 995.79 -25.85 341.14 210.13
2019-03-31 1,021.73 -14.43 336.34 208.29
2018-12-31 1,032.87 -21.11 334.10 207.13
2018-09-30 1,011.31 -60.23 329.20 200.83
2018-06-30 983.14 -46.79 316.60 183.88
2018-03-31 883.75 -27.96 286.84 157.83
2017-12-31 770.94 -19.32 250.00 131.60
2017-09-30 696.20 8.37 223.09 109.71
2017-06-30 607.08 -1.74 200.49 93.72
2017-03-31 567.79 -17.29 193.11 85.89
2016-12-31 543.48 -23.10 191.98 80.05
2016-09-30 526.41 -26.10 188.39 76.75
2016-06-30 519.83 -36.36 187.58 78.72
2016-03-31 538.64 -45.20 191.16 81.68
2015-12-31 533.34 -57.97 192.83 86.68
2015-09-30 541.25 -63.84 200.28 89.97
2015-06-30 552.94 -71.64 211.39 93.45
2015-03-31 558.37 -72.21 219.31 95.25
2014-12-31 580.54 -73.72 226.25 95.66
2014-09-30 579.91 -76.61 223.80 90.56
2014-06-30 519.55 -57.31 197.48 77.15
2014-03-31 443.72 -37.90 166.11 62.67
2013-12-31 370.16 -15.06 137.16 47.78
2013-09-30 299.13 -3.28 114.07 39.89
2013-06-30 299.34 9.67 113.93 40.52
2013-03-31 307.53 14.30 114.59 42.73
2012-12-31 312.69 18.89 115.87 43.72

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Extreme Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Extreme Networks has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Extreme Networks improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Extreme Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Extreme Networks has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Extreme Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Extreme Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Extreme Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Extreme Networks's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Extreme Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Extreme Networks Company Filings, last reported 1 month ago.

NasdaqGS:EXTR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 93.85 369.93 161.07
2019-06-30 115.99 178.75 169.61
2019-03-31 125.97 181.00 157.08
2018-12-31 115.87 183.26 141.07
2018-09-30 117.13 185.51 141.05
2018-06-30 112.73 197.76 122.60
2018-03-31 112.93 178.68 105.27
2017-12-31 111.72 183.14 128.21
2017-09-30 135.44 167.59 154.06
2017-06-30 125.68 92.70 130.45
2017-03-31 87.79 94.92 117.28
2016-12-31 85.82 97.15 103.79
2016-09-30 90.74 51.89 102.27
2016-06-30 90.20 55.07 94.12
2016-03-31 90.29 58.75 88.33
2015-12-31 95.14 62.00 85.87
2015-09-30 98.37 65.25 82.03
2015-06-30 104.24 66.88 76.23
2015-03-31 115.76 68.50 75.57
2014-12-31 134.12 89.13 109.29
2014-09-30 143.11 120.75 104.46
2014-06-30 156.71 121.56 105.88
2014-03-31 165.54 122.38 106.06
2013-12-31 184.39 99.19 112.02
2013-09-30 193.02 0.00 199.44
2013-06-30 189.15 0.00 138.84
2013-03-31 184.42 0.00 119.93
2012-12-31 188.31 0.00 124.97
  • Extreme Networks's level of debt (394.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (84.2% vs 394.2% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Extreme Networks has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Extreme Networks has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -14.9% per year.
X
Financial health checks
We assess Extreme Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Extreme Networks has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Extreme Networks's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Extreme Networks dividends.
If you bought $2,000 of Extreme Networks shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Extreme Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Extreme Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:EXTR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:EXTR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30
2020-06-30
2019-11-10

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Extreme Networks has not reported any payouts.
  • Unable to verify if Extreme Networks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Extreme Networks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Extreme Networks has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Extreme Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Extreme Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Extreme Networks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Extreme Networks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ed Meyercord
COMPENSATION $3,668,634
AGE 54
TENURE AS CEO 4.6 years
CEO Bio

Mr. Edward B. Meyercord, III, also known as Ed, has been the President and Chief Executive Officer of Extreme Networks, Inc. since April 19, 2015. Mr. Meyercord has extensive executive experience in leadership, executive management, mergers and acquisitions, corporate strategy and corporate finance. He also has industry knowledge in healthcare, telecommunications and banking where he has worked in executive leadership roles. Mr. Meyercord co-founded Critical Alert Systems, LLC in July 2010 and served as its Chief Executive Officer. He serves as the President and Managing Partner of Council Rock Advisors LLC. He served as the Chief Executive Officer of Cavalier Telephone LLC since 2007 and served as its President. He served as the Chief Executive Officer and President of Cavalier Telephone Corporation. From December 2006 to January 2009, he served as the Chief Executive Officer and President of Cavalier Telephone LLC. From January 2004 to December 2006, he served as the Chief Executive Officer and President of Talk America, Inc. He served as the Chief Executive Officer of Talk America Holdings Inc. since January 1, 2004 and also as its President since May 2001. He served as the Chief Financial Officer of Talk America Holdings Inc. from August 1999 to December 2001 and as its Chief Operating Officer from January 2000 to May 2001. Mr. Meyercord joined Talk America Holdings Inc. in September 1996 as an Executive Vice President of Marketing and Corporate Development. He served as Vice President in the Global Telecommunications Corporate Finance Group/Vice President in the investment banking division of Salomon Brothers, Inc. He has a proven track record of leadership and business building within the telecommunications industry. He has been an Executive Director of Extreme Networks, Inc. since April 19, 2015. He worked in the corporate finance department of PaineWebber Incorporated. He served as an Independent Chairman of Extreme Networks from March 9, 2011 to August 2015 and served as its Independent Director from October 2009 to April 2015. He served as a Director of Critical Alert Systems, LLC. He served as a Director of Cavalier Telephone LLC and Magellan Hill Technologies LLC. He served as a Director of Tollgrade Communications Inc. from August 5, 2009 to May 10, 2011, Cavalier Telephone LLC from December 2006 to January 2009, Talk America, Inc. from January 2004 to December 2006 and of Talk America Holdings Inc. since May 2001. Mr. Meyercord holds a Master of Business Administration degree from the Stern School of Business at New York University and a Bachelor of Arts degree in economics from Trinity College.

CEO Compensation
  • Ed's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ed's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Extreme Networks management team in years:

2.1
Average Tenure
55
Average Age
  • The tenure for the Extreme Networks management team is about average.
Management Team

Ed Meyercord

TITLE
President
COMPENSATION
$4M
AGE
54
TENURE
4.6 yrs

Rémi Thomas

TITLE
Executive VP & CFO
COMPENSATION
$3M
TENURE
1 yrs

Bob Gault

TITLE
Chief Revenue & Services Officer
COMPENSATION
$1M
AGE
56
TENURE
2.3 yrs

Norman Rice

TITLE
Chief Operating Officer
COMPENSATION
$887K
AGE
45
TENURE
0.2 yrs

Eric Broockman

TITLE
Chief Technology Officer
AGE
64
TENURE
5.8 yrs

Katy Motiey

TITLE
Chief Administrative Officer & Corporate Secretary
COMPENSATION
$1M
TENURE
2 yrs

Stan Kovler

TITLE
Senior Director of Investor Relations & Finance

Gina Christopher

TITLE
Deputy General Counsel

Dean Chabrier

TITLE
Chief People Officer
TENURE
1.8 yrs

Stephen Patak

TITLE
Senior Vice President of Sales-Americas
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Extreme Networks board of directors in years:

4.9
Average Tenure
65
Average Age
  • The tenure for the Extreme Networks board of directors is about average.
Board of Directors

John Shoemaker

TITLE
Independent Chairman
COMPENSATION
$291K
AGE
77
TENURE
2.8 yrs

Ed Meyercord

TITLE
President
COMPENSATION
$4M
AGE
54
TENURE
10.1 yrs

Charlie Carinalli

TITLE
Independent Director
COMPENSATION
$245K
AGE
71
TENURE
15.8 yrs

Raj Khanna

TITLE
Independent Director
COMPENSATION
$248K
AGE
73
TENURE
4.9 yrs

Ed Kennedy

TITLE
Independent Director
COMPENSATION
$240K
AGE
65
TENURE
8.6 yrs

Kathleen Holmgren

TITLE
Independent Director
COMPENSATION
$234K
AGE
61
TENURE
4 yrs

Ingrid Burton

TITLE
Director
AGE
56
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Aug 19 Sell Edward Meyercord Individual 02. Aug 19 02. Aug 19 -100,000 $8.22 $-822,330
X
Management checks
We assess Extreme Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Extreme Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Extreme Networks (NASDAQ:EXTR) Is Making Moderate Use Of Debt

We can see from the most recent balance sheet that Extreme Networks had liabilities of US$356.0m falling due within a year, and liabilities of US$284.9m due beyond that. … While this might seem like a lot, it is not so bad since Extreme Networks has a market capitalization of US$815.1m, and so it could probably strengthen its balance sheet by raising capital if it needed to. … When we look at that and recall the liabilities on its balance sheet, relative to cash, it seems unwise to us for the company to have any debt.

Simply Wall St -

Don't Ignore The Fact That This Insider Just Sold Some Shares In Extreme Networks, Inc. (NASDAQ:EXTR)

Check out our latest analysis for Extreme Networks Extreme Networks Insider Transactions Over The Last Year In fact, the recent sale by Edward Meyercord was the biggest sale of Extreme Networks shares made by an insider individual in the last twelve months, according to our records. … NasdaqGS:EXTR Recent Insider Trading, August 8th 2019 Insider Ownership of Extreme Networks Many investors like to check how much of a company is owned by insiders. … It appears that Extreme Networks insiders own 1.8% of the company, worth about US$17m.

Simply Wall St -

How Much Did Extreme Networks, Inc.'s (NASDAQ:EXTR) CEO Pocket Last Year?

See our latest analysis for Extreme Networks How Does Ed Meyercord's Compensation Compare With Similar Sized Companies? … We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m. … Thus we can conclude that Ed Meyercord receives more in total compensation than the median of a group of companies in the same market, and of similar size to Extreme Networks, Inc..

Simply Wall St -

Do Institutions Own Shares In Extreme Networks, Inc. (NASDAQ:EXTR)?

See our latest analysis for Extreme Networks NasdaqGS:EXTR Ownership Summary, July 15th 2019 What Does The Institutional Ownership Tell Us About Extreme Networks? … As you can see, institutional investors own 77% of Extreme Networks. … Insider Ownership Of Extreme Networks While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

Does The Extreme Networks, Inc. (NASDAQ:EXTR) Share Price Tend To Follow The Market?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. … What this means for you: Since Extreme Networks has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

If You Had Bought Extreme Networks (NASDAQ:EXTR) Shares Three Years Ago You'd Have Made 57%

See our latest analysis for Extreme Networks Given that Extreme Networks didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … The share price rise of 16% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. … You could get a better understanding of Extreme Networks's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Simply Wall St -

Is Extreme Networks, Inc.'s (NASDAQ:EXTR) Balance Sheet A Threat To Its Future?

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … (NASDAQ:EXTR) with its market cap of US$774m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Extreme Networks, Inc. (NASDAQ:EXTR) Insiders Increased Their Holdings

We always take careful note of the price insiders pay when purchasing shares. … As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price … Happily, we note that in the last year insiders bought 155k shares for a total of US$1.4m

Simply Wall St -

Do Institutions Own Shares In Extreme Networks, Inc. (NASDAQ:EXTR)?

If you want to know who really controls Extreme Networks, Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership.

Simply Wall St -

Is Extreme Networks's Share Price Gain Of 187% Well Earned?

Extreme Networks isn't yet profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit. … Extreme Networks's revenue trended up 28% each year over three years.

Simply Wall St -

Company Info

Description

Extreme Networks, Inc. provides software-driven networking solutions for enterprise, data center, and service provider customers worldwide. It designs, develops, and manufactures wired and wireless network infrastructure equipment; and develops the software for network management, policy, analytics, security, and access controls. The company offers edge/access switch portfolio that delivers Ethernet connectivity for the edge of the network; aggregation/core switches designed to address aggregation, top-of-rack, and campus core environments; and wireless access point products. It also provides VDX, MLX, and SLX data center family of switches; ExtremeControl, a network access control solution that allows the enterprises to unify the security of their wired and wireless networks with visibility and control over users, devices, and applications; and ExtremeAnalytics, a network-powered application analytics and optimization solution, which captures, aggregates, analyses, correlates, and reports network data that enables in decision making and enhancing business performance. In addition, the company offers ExtremeGuest and ExtremeLocation, which are cloud services that enable enterprises to incorporate location-based services; and ExtremeCloud, a wired and wireless cloud network management solution, which offers visibility and control over users and applications. It markets and sells its products through distributors, resellers, and field sales organizations. The company serves enterprises and organizations in the education, healthcare, manufacturing, hospitality, transportation, and logistics sectors, as well as government agencies, private cloud data centers, universities, and stadiums; and enterprises and private cloud data centers. Extreme Networks, Inc. was founded in 1996 and is headquartered in San Jose, California.

Details
Name: Extreme Networks, Inc.
EXTR
Exchange: NasdaqGS
Founded: 1996
$843,673,709
121,566,817
Website: http://www.extremenetworks.com
Address: Extreme Networks, Inc.
6480 Via del Oro,
San Jose,
California, 95119,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS EXTR Common Stock Nasdaq Global Select US USD 09. Apr 1999
DB EXM Common Stock Deutsche Boerse AG DE EUR 09. Apr 1999
LSE 0IJW Common Stock London Stock Exchange GB USD 09. Apr 1999
Number of employees
Current staff
Staff numbers
2,713
Extreme Networks employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:36
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/05
Last earnings filing: 2019/10/31
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.