Netgear, Inc. (NASDAQ: NTGR)

Sector: Technology Industry: Communication Equipment CIK: 0001122904
Market Cap 604.83 Mn
P/B 1.21
P/E -33.75
P/S 0.86
ROIC (Qtr) -1.69
Div Yield % 0.00
Rev 1y % (Qtr) 0.03
Total Debt (Qtr) 41.02 Mn
Debt/Equity (Qtr) 0.08
Add ratio to table...

About

Investment thesis

Bull case

  • Strong tangible asset base of 752.77M provides 18.35x coverage of total debt 41.02M, indicating robust asset backing and low credit risk.
  • Tangible assets of 752.77M provide exceptional 27.98x coverage of deferred revenue 26.90M, showing strong service capability backing.
  • Cash reserves of 209.90M provide robust 0.84x coverage of current liabilities 250.22M, indicating strong short-term solvency.
  • Cash reserves of 209.90M provide solid 10.34x coverage of other non-current liabilities 20.31M, indicating strong liquidity.
  • R&D investment of 85.72M represents healthy 3.19x of deferred revenue 26.90M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 1.61M barely covers its investment activities of (22.64M), with a coverage ratio of -0.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (22.64M) provide weak support for R&D spending of 85.72M, which is -0.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 209.90M provide limited coverage of acquisition spending of (12.19M), which is -17.22x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 1.61M provides insufficient coverage of deferred revenue obligations of 26.90M, which is 0.06x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 1.61M shows concerning coverage of stock compensation expenses of 29.71M, with a 0.05 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 305.09 Bn 27.54 5.17 30.09 Bn
2 MSI Motorola Solutions, Inc. 76.26 Bn 35.40 6.53 9.63 Bn
3 CIEN Ciena Corp 42.86 Bn 347.51 8.99 1.58 Bn
4 UI Ubiquiti Inc. 42.08 Bn 47.35 14.16 0.11 Bn
5 LITE Lumentum Holdings Inc. 41.73 Bn 165.86 19.82 3.32 Bn
6 HPE Hewlett Packard Enterprise Co 28.79 Bn 7.76 1.03 22.37 Bn
7 ASTS AST SpaceMobile, Inc. 22.73 Bn -74.80 1,226.44 0.72 Bn
8 ZBRA Zebra Technologies Corp 13.26 Bn 31.65 2.46 2.66 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.53 2.66
EV to Cash from Ops. EV/CFO 276.67 14.95
EV to Debt EV to Debt 10.83 37.29
EV to EBIT EV/EBIT -26.49 201.55
EV to EBITDA EV/EBITDA -16.99 9.12
EV to Free Cash Flow [EV/FCF] EV/FCF -23.50 66.04
EV to Market Cap EV to Market Cap 0.73 1.10
EV to Revenue EV/Rev 0.64 32.52
Price to Book Value [P/B] P/B 1.21 6.31
Price to Earnings [P/E] P/E -33.75 12.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -19.58
Dividend per Basic Share Div per Share (Qtr) 0.00 0.23
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 5.02
Interest Coverage Interest Coverage 0.00 -10.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -128.10 -65.39
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.72 457.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.57
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -244.97 67.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -239.65 -9.76
EBIT Growth (1y) % EBIT 1y % (Qtr) -167.41 67.42
EBT Growth (1y) % EBT 1y % (Qtr) -167.41 -72.72
EPS Growth (1y) % EPS 1y % (Qtr) -246.51 5.66
FCF Growth (1y) % FCF 1y % (Qtr) -112.14 -2.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 35.86 36.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.75
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.84 1.34
Current Ratio Curr Ratio (Qtr) 2.69 2.99
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.46
Interest Cover Ratio Interest Cover Ratio 0.00 -10.88
Times Interest Earned Times Interest Earned 0.00 -10.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1.30 -41.18
EBIT Margin % EBIT Margin % (Qtr) -2.40 -52.62
EBT Margin % EBT Margin % (Qtr) -2.40 -59.46
Gross Margin % Gross Margin % (Qtr) 38.00 38.53
Net Profit Margin % Net Margin % (Qtr) -2.60 -60.82