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NETGEAR

Nasdaq:NTGR
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NTGR
Nasdaq
$836M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The last earnings update was 9 days ago. More info.


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  • NETGEAR has significant price volatility in the past 3 months.
NTGR Share Price and Events
7 Day Returns
1.7%
NasdaqGS:NTGR
4.7%
US Communications
0.9%
US Market
1 Year Returns
-49.5%
NasdaqGS:NTGR
1.1%
US Communications
10.5%
US Market
NTGR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NETGEAR (NTGR) 1.7% -11.8% -15.8% -49.5% -46.4% -19.9%
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
  • NTGR underperformed the Communications industry which returned 1.1% over the past year.
  • NTGR underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
NTGR
Industry
5yr Volatility vs Market
Related Companies

Value

 Is NETGEAR 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 NETGEAR 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 NETGEAR.

NasdaqGS:NTGR 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 9.4%
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:NTGR
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%) (4.42%))
1.114
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.114 * 5.96%)
9.37%

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

The calculations below outline how an intrinsic value for NETGEAR 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:NTGR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.37%)
2020 90.20 Analyst x1 82.47
2021 67.60 Analyst x1 56.51
2022 75.00 Analyst x1 57.33
2023 91.40 Analyst x1 63.87
2024 93.02 Est @ 1.77% 59.44
2025 94.93 Est @ 2.06% 55.46
2026 97.08 Est @ 2.26% 51.85
2027 99.41 Est @ 2.4% 48.55
2028 101.89 Est @ 2.5% 45.50
2029 104.51 Est @ 2.57% 42.67
Present value of next 10 years cash flows $563.00
NasdaqGS:NTGR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $104.51 × (1 + 2.73%) ÷ (9.37% – 2.73%)
$1,616.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,616.52 ÷ (1 + 9.37%)10
$659.99
NasdaqGS:NTGR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $563.00 + $659.99
$1,222.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,222.99 / 30.15
$40.57
NasdaqGS:NTGR Discount to Share Price
Calculation Result
Value per share (USD) From above. $40.57
Current discount Discount to share price of $27.72
= -1 x ($27.72 - $40.57) / $40.57
31.7%

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

Current Discount
Amount off the current price NETGEAR is available for.
Intrinsic value
32%
Share price is $27.72 vs Future cash flow value of $40.57
Current Discount Checks
For NETGEAR to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • NETGEAR's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • NETGEAR's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 NETGEAR's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NETGEAR's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NTGR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-29) in USD $0.82
NasdaqGS:NTGR Share Price ** NasdaqGS (2019-11-08) in USD $27.72
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 NETGEAR.

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

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

= 27.72 ÷ 0.82

33.81x

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

  • NETGEAR is overvalued based on earnings compared to the US Communications industry average.
  • NETGEAR is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does NETGEAR's expected growth come at a high price?
Raw Data
NasdaqGS:NTGR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.81x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
28.4%per year
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 .

NasdaqGS:NTGR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.81x ÷ 28.4%

1.19x

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

  • NETGEAR is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NETGEAR's assets?
Raw Data
NasdaqGS:NTGR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-29) in USD $20.34
NasdaqGS:NTGR Share Price * NasdaqGS (2019-11-08) in USD $27.72
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:NTGR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 27.72 ÷ 20.34

1.36x

* Primary Listing of NETGEAR.

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

  • NETGEAR is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess NETGEAR'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. NETGEAR has a total score of 2/6, 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 NETGEAR 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
28.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NETGEAR expected to grow at an attractive rate?
  • NETGEAR's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • NETGEAR's earnings growth is expected to exceed the United States of America market average.
  • NETGEAR's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NTGR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NTGR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 28.4%
NasdaqGS:NTGR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.7%
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:NTGR 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:NTGR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,171 109 86 1
2022-12-31 1,112 92 76 2
2021-12-31 1,072 84 60 3
2020-12-31 1,025 106 40 5
2019-12-31 992 -9 28 5
2019-11-10
NasdaqGS:NTGR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-29 1,035 -213 26
2019-06-30 1,038 -153 29
2019-03-31 1,063 -197 29
2018-12-31 1,059 -103 17
2018-09-30 799 60 -45
2018-07-01 885 124 -40
2018-04-01 961 135 -26
2017-12-31 1,039 88 -11
2017-10-01 1,378 86 73
2017-07-02 1,361 31 74
2017-04-02 1,342 65 75
2016-12-31 1,143 118 70
2016-10-02 1,321 128 76

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NETGEAR's earnings are expected to grow significantly at over 20% yearly.
  • NETGEAR's revenue is expected to grow by 3.7% 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:NTGR 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 NETGEAR Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NTGR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.84 2.84 2.84 1.00
2022-12-31 2.33 2.49 2.17 2.00
2021-12-31 1.94 1.94 1.94 2.00
2020-12-31 1.26 1.38 1.19 3.00
2019-12-31 0.89 0.90 0.88 3.00
2019-11-10
NasdaqGS:NTGR Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-29 0.82
2019-06-30 0.93
2019-03-31 0.92
2018-12-31 0.55
2018-09-30 -1.41
2018-07-01 -1.27
2018-04-01 -0.82
2017-12-31 -0.35
2017-10-01 2.26
2017-07-02 2.25
2017-04-02 2.29
2016-12-31 2.15
2016-10-02 2.32

*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.
  • NETGEAR is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NETGEAR'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.
NETGEAR 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 NETGEAR 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 NETGEAR'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.
  • NETGEAR's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • NETGEAR has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • NETGEAR has become profitable in the last year making it difficult to compare the US Communications industry average.
Earnings and Revenue History
NETGEAR'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 NETGEAR Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NTGR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-29 1,034.72 25.68 192.06 76.33
2019-06-30 1,038.27 29.46 200.76 76.93
2019-03-31 1,062.70 29.15 212.76 80.06
2018-12-31 1,058.82 17.33 217.43 82.42
2018-09-30 799.19 -44.64 202.37 66.00
2018-07-01 885.27 -40.16 202.84 68.99
2018-04-01 960.71 -26.11 195.24 70.40
2017-12-31 1,039.17 -11.13 193.03 71.89
2017-10-01 1,377.79 73.48 209.51 92.66
2017-07-02 1,360.77 73.80 206.42 91.47
2017-04-02 1,341.70 75.26 206.13 89.91
2016-12-31 1,143.45 70.31 193.59 70.90
2016-10-02 1,321.23 75.55 202.08 89.25
2016-07-03 1,324.67 69.53 198.35 88.89
2016-04-03 1,301.79 57.16 193.61 88.18
2015-12-31 1,300.70 48.58 192.11 86.50
2015-09-27 1,293.01 -13.58 191.93 86.03
2015-06-28 1,304.46 -8.65 195.21 87.80
2015-03-29 1,353.28 2.39 200.91 89.17
2014-12-31 1,393.52 8.79 203.57 90.90
2014-09-28 1,396.95 60.57 202.25 90.52
2014-06-29 1,405.51 55.01 203.56 90.51
2014-03-30 1,425.63 54.29 206.00 92.01
2013-12-31 1,369.63 55.22 202.72 85.17
2013-09-29 1,323.45 59.86 199.86 77.43
2013-06-30 1,276.76 69.20 197.03 71.51
2013-03-31 1,239.70 76.74 193.42 62.28
2012-12-31 1,271.92 86.54 194.79 61.07

*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.
  • NETGEAR has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NETGEAR used its assets less efficiently than the US Communications industry average last year based on Return on Assets.
  • NETGEAR's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NETGEAR'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.
NETGEAR 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 NETGEAR'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 NETGEAR's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NETGEAR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NETGEAR's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NETGEAR'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.
  • NETGEAR has no debt, it does not need to be covered by short term assets.
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 NETGEAR Company Filings, last reported 1 month ago.

NasdaqGS:NTGR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-29 622.14 0.00 171.92
2019-06-30 622.07 0.00 218.31
2019-03-31 632.91 0.00 212.65
2018-12-31 627.55 0.00 274.36
2018-09-30 934.48 0.00 529.81
2018-07-01 755.74 0.00 355.64
2018-04-01 755.72 0.00 386.24
2017-12-31 730.49 0.00 329.65
2017-10-01 776.52 0.00 372.79
2017-07-02 775.92 0.00 305.52
2017-04-02 808.03 0.00 361.24
2016-12-31 796.82 0.00 365.98
2016-10-02 777.20 0.00 403.02
2016-07-03 740.80 0.00 352.67
2016-04-03 724.37 0.00 333.30
2015-12-31 708.71 0.00 278.27
2015-09-27 661.46 0.00 263.85
2015-06-28 659.89 0.00 212.92
2015-03-29 729.82 0.00 247.41
2014-12-31 721.57 0.00 257.13
2014-09-28 776.55 0.00 242.65
2014-06-29 774.47 0.00 242.73
2014-03-30 782.42 0.00 240.26
2013-12-31 773.78 0.00 248.15
2013-09-29 818.58 0.00 301.42
2013-06-30 796.58 0.00 288.10
2013-03-31 777.38 0.00 422.41
2012-12-31 754.61 0.00 376.88
  • NETGEAR has no debt.
  • NETGEAR has not taken on any debt in the past 5 years.
  • NETGEAR has no debt, it does not need to be covered by operating cash flow.
  • NETGEAR has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess NETGEAR'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. NETGEAR has a total score of 6/6, 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 NETGEAR'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 NETGEAR dividends.
If you bought $2,000 of NETGEAR 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 NETGEAR's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NETGEAR'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:NTGR 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:NTGR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31
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 NETGEAR has not reported any payouts.
  • Unable to verify if NETGEAR's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NETGEAR's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NETGEAR 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 NETGEAR'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 NETGEAR afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NETGEAR 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 NETGEAR'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
Patrick Lo
COMPENSATION $7,095,858
AGE 62
TENURE AS CEO 17.7 years
CEO Bio

Mr. C. S. Lo, also known as Patrick, co-founded Netgear Inc. and has also been its Chief Executive Officer since March 2002. Mr. Lo served as the President of Netgear Inc. from September 1999 to March 2002, Acting General Manager of Commercial Business Unit from May 2012 to July 2013 and its a Vice President and General Manager from 1996 to September 1999. Mr. Lo joined Bay Networks, a networking company, in August 1995 to launch a division targeting the small business and home markets and established NETGEAR division in January 1996. From 1983 to 1995, Mr. Lo worked at Hewlett-Packard Company, where he served in various management positions in software sales, technical support, network product management, sales support and marketing in the United States and Asia and served as the Asia/ Pacific marketing Director of Unix servers. He was a Director of Arlo Technologies, Inc until December 31, 2018. He has been the Chairman of Netgear Inc. since March 2002 and has been its Director since 2000. He also serves as the Director of Netgear Australia Pty. Ltd. Mr. Lo holds a B.S. Degree in Electrical Engineering from Brown University.

CEO Compensation
  • Patrick's compensation has increased in line with NETGEAR recently becoming profitable.
  • Patrick'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 NETGEAR management team in years:

6.3
Average Tenure
54.5
Average Age
  • The average tenure for the NETGEAR management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Patrick Lo

TITLE
Co-Founder
COMPENSATION
$7M
AGE
62
TENURE
17.7 yrs

Bryan Murray

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
44
TENURE
1.3 yrs

Michael Falcon

TITLE
COMPENSATION
$3M
AGE
63
TENURE
10.8 yrs

Andrew Kim

TITLE
Senior VP of Corporate Development
COMPENSATION
$4M
AGE
48
TENURE
6.3 yrs

Michael Werdann

TITLE
Senior Vice President of Worldwide Sales
COMPENSATION
$2M
AGE
51
TENURE
4.1 yrs

Mark Merrill

TITLE
Co-Founder & CTO
COMPENSATION
$275K
AGE
64

Chris Genualdi

TITLE
Director of Investor Relations & Corporate Development

Heidi Cormack

TITLE
Senior Vice President of Global Marketing

Tamesa Rogers

TITLE
Senior Vice President of Human Resources
AGE
45
TENURE
6.3 yrs

John McHugh

TITLE
Senior Vice President of SMB Products & Services
COMPENSATION
$883K
AGE
58
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the NETGEAR board of directors in years:

8.3
Average Tenure
63
Average Age
  • The tenure for the NETGEAR board of directors is about average.
Board of Directors

Greg Rossmann

TITLE
Independent Director
COMPENSATION
$250K
AGE
57
TENURE
17.8 yrs

Patrick Lo

TITLE
Co-Founder
COMPENSATION
$7M
AGE
62
TENURE
17.7 yrs

Barbara Scherer

TITLE
Independent Director
COMPENSATION
$275K
AGE
63
TENURE
8.3 yrs

Tom Waechter

TITLE
Lead Independent Director
COMPENSATION
$257K
AGE
66
TENURE
0.8 yrs

Jef Graham

TITLE
Independent Director
COMPENSATION
$252K
AGE
63
TENURE
14.3 yrs

Brad Maiorino

TITLE
Independent Director
COMPENSATION
$212K
AGE
48
TENURE
1.3 yrs

Janice Roberts

TITLE
Director
AGE
63
TENURE
0.8 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 ($) Value ($)
16. Apr 19 Sell David Henry Individual 15. Apr 19 15. Apr 19 -749 $33.80 $-25,316
X
Management checks
We assess NETGEAR'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. NETGEAR 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

What You Must Know About NETGEAR, Inc.'s (NASDAQ:NTGR) Beta Value

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 NETGEAR has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Should You Be Worried About NETGEAR, Inc.'s (NASDAQ:NTGR) 4.7% Return On Equity?

See our latest analysis for NETGEAR How Do I Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for NETGEAR: 4.7% = US$29m ÷ US$622m (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

If You Had Bought NETGEAR (NASDAQ:NTGR) Shares A Year Ago You'd Have A Total Return Of -35%

NETGEAR managed to increase earnings per share from a loss to a profit, over the last 12 months. … Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit. … NETGEAR hasn't been paying dividends, but its TSR of -35% exceeds its share price return of -59%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

Simply Wall St -

Should NETGEAR, Inc. (NASDAQ:NTGR) Be Your Next Stock Pick?

Looking at the company as a whole, as a potential stock investment, I believe NTGR has a lot to offer. … Investors should not worry about NTGR’s debt levels because the company has none! … Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

Simply Wall St -

Should You Think About Buying NETGEAR, Inc. (NASDAQ:NTGR) Now?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … The stock’s ratio of 28.3x is currently trading slightly above its industry peers’ ratio of 27.69x, which means if you buy NETGEAR today, you’d be paying a relatively fair price for it. … It seems like the market has already priced in NTGR’s growth outlook, with shares trading around its fair value.

Simply Wall St -

Does NETGEAR, Inc. (NASDAQ:NTGR) Have A High Beta?

(NASDAQ:NTGR), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Why We’re Not Keen On NETGEAR, Inc.’s (NASDAQ:NTGR) 6.4% Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

NETGEAR (NASDAQ:NTGR) Shareholders Received A Total Return Of -4.9% In The Last Year

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Earnings per share growth rates aren't particularly useful for comparing with the share price, when a company has moved from loss to profit. … However, it is certainly possible the market was expecting an uptick in revenue, and that the share price fall reflects that disappointment.

Simply Wall St -

At US$37.00, Is NETGEAR, Inc. (NASDAQ:NTGR) Worth Looking At Closely?

Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at NETGEAR’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Is NETGEAR, Inc.'s (NASDAQ:NTGR) ROE Of 3.0% Concerning?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.030 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. It operates in two segments, Connected Home, and Small and Medium Business. The company offers smart home/connected home/broadband access products, such as broadband modems, WiFi gateways, WiFi hotspots, WiFi routers and home WiFi systems, WiFi range extenders, Powerline adapters and bridges, WiFi network adapters, and digital canvasses; and value added service offerings, including technical support, parental controls, and cybersecurity protection. It also provides Ethernet switches, wireless controllers and access points, unified storage products, and Internet security appliances for small and medium-sized businesses. The company markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers in the Americas, Europe, the Middle-East, Africa, and the Asia Pacific. NETGEAR, Inc. was founded in 1996 and is headquartered in San Jose, California.

Details
Name: NETGEAR, Inc.
NTGR
Exchange: NasdaqGS
Founded: 1996
$835,688,810
30,147,504
Website: http://www.netgear.com
Address: NETGEAR, Inc.
350 East Plumeria Drive,
San Jose,
California, 95134,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NTGR Common Stock Nasdaq Global Select US USD 31. Jul 2003
DB NGJ Common Stock Deutsche Boerse AG DE EUR 31. Jul 2003
Number of employees
Current staff
Staff numbers
837
NETGEAR employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:46
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/10/24
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/29
Last annual earnings reported: 2018/12/31


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.