ScoreWhy is Extreme Networks, Inc. ?
1
High Management Efficiency with a high ROE of 28.11%
2
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 28.11%
3
With a growth in Net Profit of 34.46%, the company declared Outstanding results in Mar 26
- The company has declared positive results for the last 5 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 132.27 MM
- ROCE(HY) Highest at 21.6%
- INTEREST COVERAGE RATIO(Q) Highest at 865.31
4
With ROE of 9.18%, it has a fair valuation with a 22.41 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 89.15%, its profits have risen by 109.4% ; the PEG ratio of the company is 2.2
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating Performance
- The stock has generated a return of 89.15% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Extreme Networks, Inc. should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Extreme Networks, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Extreme Networks, Inc.
89.15%
3.18
51.74%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.20%
EBIT Growth (5y)
27.13%
EBIT to Interest (avg)
2.67
Debt to EBITDA (avg)
0.79
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
4.42
Tax Ratio
20.76%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
27.54%
ROE (avg)
28.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
244
Industry P/E
Price to Book Value
22.41
EV to EBIT
62.46
EV to EBITDA
27.78
EV to Capital Employed
35.68
EV to Sales
1.73
PEG Ratio
2.24
Dividend Yield
NA
ROCE (Latest)
57.12%
ROE (Latest)
9.18%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend31What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 132.27 MM
ROCE(HY)
Highest at 21.6%
INTEREST COVERAGE RATIO(Q)
Highest at 865.31
RAW MATERIAL COST(Y)
Fallen by -0.17% (YoY
CASH AND EQV(HY)
Highest at USD 429.9 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 32.45 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.2 times
OPERATING PROFIT(Q)
Highest at USD 28.11 MM
OPERATING PROFIT MARGIN(Q)
Highest at 8.87 %
PRE-TAX PROFIT(Q)
Highest at USD 17.01 MM
NET PROFIT(Q)
Highest at USD 12.16 MM
EPS(Q)
Highest at USD 0.08
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Extreme Networks, Inc.
Pre-Tax Profit
At USD 17.01 MM has Grown at 207.93%
over average net sales of the previous four periods of USD 5.52 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 12.16 MM has Grown at 452.74%
over average net sales of the previous four periods of USD 2.2 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Interest Coverage Ratio
Highest at 865.31
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 132.27 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 28.11 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 8.87 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 17.01 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 12.16 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.08
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 429.9 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 32.45 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.2 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -0.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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