NTGR

NETGEAR, Inc.

Fundamental data last updated:November 6, 2026

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company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

NASDAQ

County of HQ

United States

Next Earnings Date

Pending Announcement

Business Summary

NETGEAR's business model revolves around designing and selling networking products for consumers and businesses. Their competitive moat lies in brand recognition and a broad product portfolio that caters to diverse connectivity needs. By focusing on innovation and customer loyalty, they aim to lock in users through ecosystem integration. However, sustaining this moat requires continuous investment in R&D and marketing to fend off fierce competition.

 


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VALUATION

P/E

-16.20

Market Cap ($M USD)

$638.43M

Forward P/E

82.42

PEG

-0.73

PRICE TO SALES

0.93

PRICE TO BOOK

1.39

EV / EBITDA

-36.26

5-Year Average P/E

Free Cash Flow Yield

-3.04%

DCF Value

$-7.21

Graham Number

N/A

Price to FCF

-32.85

EV to FCF

-26.24

Earnings Yield

-6.40%

FCF Yield

-3.04%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.50

Next Year EPS Growth Estimate

$0.29

Next Year Revenue Growth Estimate

$679.02M

Return on Equity (ROE)

-8.42%

FREE CASH FLOW

Operating Margin

-4.24%

Debt-to-Equity

0.10

Piotroski F-Score

5

Altman Z-Score

1.43

Return on Invested Capital (ROIC)

-5.37%

Current Ratio

2.48

Quick Ratio

1.80

Net Debt to EBITDA

9.14

Interest Coverage

0.00

Gross Profit margin

38.18%

FCF PER SHARE

$-0.72

REVENUE PER SHARE

$25.45

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Gainseekers Quantitative Analysis

Summary

The market’s current valuation of NETGEAR, Inc. appears to be a stark mispricing when juxtaposed with its negative DCF Value. The Forward P/E ratio of 82.42 suggests an optimistic outlook, yet the negative Earnings Yield and an Altman Z-score of 1.43 indicate potential financial distress. With a Price/Book ratio of 1.39, the stock isn’t screaming value, and the negative ROIC further underscores management’s struggle to generate returns. The stock’s valuation metrics paint a picture of a company priced for perfection, yet its fundamentals tell a different story.

AI Exposure / Tech Reliance

Operating within the Communication Equipment industry, NETGEAR is strategically positioned to leverage AI and modern tech advancements. As the sector evolves, the company can capitalize on increased connectivity demands and smart home integrations. However, its ability to adapt hinges on innovation and maintaining competitive pricing.

The Bull Case

For the discerning GARP investor, NETGEAR offers a few glimmers of hope. The Piotroski F-Score of 5 suggests some financial stability, while a Current Ratio of 2.48 indicates strong liquidity. Despite a negative FCF Yield, the company's Gross Profit Margin of 38.18% hints at potential pricing power. These metrics suggest that, with strategic management, there could be room for capital efficiency improvements.

The Bear Case

NETGEAR's structural weaknesses are glaring. The negative EV to EBITDA and Price to FCF ratios highlight severe cash flow issues, while the negative EPS and ROIC reflect poor profitability. Trading at a significant distance from its 52-week high, the stock's technical position is precarious. Despite a low Debt/Equity ratio, the company's financial health is undermined by its inability to cover interest expenses, signaling potential liquidity challenges.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$30.00

Institutional Ownership %

1-Year Beta

1.15

Insider Buying % (6 Mo)

Distance to 52-Week High

49.43%

Distance to 52-Week Low

19.11%

EARNINGS SURPRISE %

1,100.30%

50-DAY SMA

$22.14

200-DAY SMA

$22.98

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.