Extreme Networks Gross Profit vs. Price To Earnings To Growth

EXTR Stock  USD 16.49  0.46  2.87%   
Based on Extreme Networks' profitability indicators, Extreme Networks may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Extreme Networks' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1998-09-30
Previous Quarter
114.1 M
Current Value
169.5 M
Quarterly Volatility
49.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Extreme Networks' Price To Sales Ratio is relatively stable compared to the past year. As of 11/26/2024, EV To Sales is likely to grow to 2.77, while Sales General And Administrative To Revenue is likely to drop 0.08. At this time, Extreme Networks' Net Income Applicable To Common Shares is relatively stable compared to the past year. As of 11/26/2024, Non Operating Income Net Other is likely to grow to about 3.8 M, while Operating Income is likely to drop (30.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.420.5647
Way Down
Pretty Stable
For Extreme Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Extreme Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Extreme Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Extreme Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Extreme Networks over time as well as its relative position and ranking within its peers.
  

Extreme Networks' Revenue Breakdown by Earning Segment

Check out Investing Opportunities.
To learn how to invest in Extreme Stock, please use our How to Invest in Extreme Networks guide.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Extreme Networks. If investors know Extreme will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Extreme Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.77)
Earnings Share
(0.96)
Revenue Per Share
7.955
Quarterly Revenue Growth
(0.24)
Return On Assets
(0.04)
The market value of Extreme Networks is measured differently than its book value, which is the value of Extreme that is recorded on the company's balance sheet. Investors also form their own opinion of Extreme Networks' value that differs from its market value or its book value, called intrinsic value, which is Extreme Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Extreme Networks' market value can be influenced by many factors that don't directly affect Extreme Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Extreme Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Extreme Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Extreme Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Extreme Networks Price To Earnings To Growth vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Extreme Networks's current stock value. Our valuation model uses many indicators to compare Extreme Networks value to that of its competitors to determine the firm's financial worth.
Extreme Networks is rated # 5 in gross profit category among its peers. It is rated below average in price to earnings to growth category among its peers . The ratio of Gross Profit to Price To Earnings To Growth for Extreme Networks is about  512,394,664 . At this time, Extreme Networks' Gross Profit is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Extreme Networks by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Extreme Price To Earnings To Growth vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Extreme Networks

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
629.94 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.

Extreme Networks

PEG Ratio

 = 

PE Ratio

EPS Growth

 = 
1.23 X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

Extreme Price To Earnings To Growth Comparison

Extreme Networks is currently under evaluation in price to earnings to growth category among its peers.

Extreme Networks Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Extreme Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Extreme Networks will eventually generate negative long term returns. The profitability progress is the general direction of Extreme Networks' change in net profit over the period of time. It can combine multiple indicators of Extreme Networks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-15.5 M-14.7 M
Operating Income-28.9 M-30.3 M
Income Before Tax-77.5 M-73.6 M
Total Other Income Expense Net-48.6 M-46.2 M
Net Loss-86 M-81.7 M
Income Tax Expense8.5 M6.3 M
Net Income Applicable To Common Shares70.3 M73.8 M
Net Loss-86 M-81.7 M
Non Operating Income Net Other3.7 M3.8 M
Interest Income4.6 M2.3 M
Net Interest Income-12.4 M-13.1 M
Change To Netincome66 M69.3 M
Net Loss(0.66)(0.63)
Income Quality(0.65)(0.61)
Net Income Per E B T 1.11  0.67 

Extreme Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Extreme Networks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Extreme Networks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Extreme Networks' important profitability drivers and their relationship over time.

Use Extreme Networks in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Extreme Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Extreme Networks will appreciate offsetting losses from the drop in the long position's value.

Extreme Networks Pair Trading

Extreme Networks Pair Trading Analysis

The ability to find closely correlated positions to Extreme Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Extreme Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Extreme Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Extreme Networks to buy it.
The correlation of Extreme Networks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Extreme Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Extreme Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Extreme Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Extreme Networks position

In addition to having Extreme Networks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Investing Thematic Idea Now

Investing
Investing Theme
Companies involved in money management and investment banking services. The Investing theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investing Theme or any other thematic opportunities.
View All  Next Launch

Additional Tools for Extreme Stock Analysis

When running Extreme Networks' price analysis, check to measure Extreme Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Extreme Networks is operating at the current time. Most of Extreme Networks' value examination focuses on studying past and present price action to predict the probability of Extreme Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Extreme Networks' price. Additionally, you may evaluate how the addition of Extreme Networks to your portfolios can decrease your overall portfolio volatility.