NETGEAR, Inc. (NTGR) 10-Year Financial Performance & Capital Metrics

NTGR • • Industrial / General

TechnologyCommunication EquipmentEnterprise Networking & Unified CommunicationsEnterprise Network Equipment

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

Revenue $674M -9.1%
EBITDA $19M +171.7%
Net Income $12M +111.8%
EPS (Diluted) 0.42 +111.8%
Gross Margin 29.08% -13.6%
EBITDA Margin 2.78% +178.9%
Operating Margin 1.81% +140.4%
Net Margin 1.83% +113.0%
ROE 2.3% +112.7%
ROIC 2.67% +149.3%
Debt/Equity 0.06 -27.1%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓FCF machine: 23.1% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Trading at only 1.2x book value

✗Weaknesses

✗Profits declining 13.7% over 5 years
✗Weak momentum: RS Rating 16 (bottom 16%)
✗Sales declining 7.6% over 5 years
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-7.01%

5Y-7.57%

3Y-16.76%

TTM2.88%

Profit (Net Income) CAGR

10Y3.47%

5Y-13.68%

3Y-36.98%

TTM-233.43%

EPS CAGR

10Y5.76%

5Y-12.31%

3Y-35.84%

TTM-239.21%

ROCE

10Y Avg5.11%

5Y Avg0.97%

3Y Avg-4.98%

Latest2.1%

Peer Comparison

Enterprise Network Equipment

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
NTGRNETGEAR, Inc.	644.17M	22.68	54	-9.05%	-3.73%	-5.15%	24.19%	0.06
CSCOCisco Systems, Inc.	297.32B	75.25	29.51	5.3%	17.9%	22.04%	4.47%	0.63
SILCSilicom Ltd.	88.97M	15.68	-6.88	-53.18%	-25.41%	-12.24%	19.51%	0.05
EXTRExtreme Networks, Inc.	2.15B	16.09	-285.28	2.05%	0.81%	13.88%	5.92%	3.41
HPEHewlett Packard Enterprise Company	29.29B	21.95	-492.15	13.84%	0.17%	0.23%	2.14%	0.90

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.3B	1.33B	1.41B	1.06B	998.76M	1.26B	1.17B	932.47M	740.84M	673.76M
Revenue Growth %	-0.07%	0.02%	0.06%	-0.25%	-0.06%	0.26%	-0.07%	-0.2%	-0.21%	-0.09%
Cost of Goods Sold+	933.02M	916.11M	1.01B	717.12M	704.53M	883.05M	802.24M	681.92M	491.59M	477.83M
COGS % of Revenue	0.72%	0.69%	0.72%	0.68%	0.71%	0.7%	0.69%	0.73%	0.66%	0.71%
Gross Profit+	367.68M	412.19M	396.04M	341.7M	294.23M	372.15M	365.84M	250.55M	249.25M	195.93M
Gross Margin %	0.28%	0.31%	0.28%	0.32%	0.29%	0.3%	0.31%	0.27%	0.34%	0.29%
Gross Profit Growth %	-0.08%	0.12%	-0.04%	-0.14%	-0.14%	0.26%	-0.02%	-0.32%	-0.01%	-0.21%
Operating Expenses+	278.61M	294.2M	309.19M	299.84M	268.04M	296.61M	299.24M	333.47M	282.53M	183.71M
OpEx % of Revenue	0.21%	0.22%	0.22%	0.28%	0.27%	0.24%	0.26%	0.36%	0.38%	0.27%
Selling, General & Admin	192.11M	204.84M	214.59M	217.43M	187.58M	209M	205.62M	195.99M	194.02M	187.16M
SG&A % of Revenue	0.15%	0.15%	0.15%	0.21%	0.19%	0.17%	0.18%	0.21%	0.26%	0.28%
Research & Development	86.5M	89.37M	94.6M	82.42M	77.98M	88.79M	92.97M	88.44M	83.3M	81.08M
R&D % of Revenue	0.07%	0.07%	0.07%	0.08%	0.08%	0.07%	0.08%	0.09%	0.11%	0.12%
Other Operating Expenses	-88K	-121K	2.02M	510K	2.48M	-1.18M	653K	49.04M	5.21M	-84.53M
Operating Income+	85.36M	114.03M	86.58M	38.71M	26.19M	75.54M	66.6M	-82.92M	-33.27M	12.22M
Operating Margin %	0.07%	0.09%	0.06%	0.04%	0.03%	0.06%	0.06%	-0.09%	-0.04%	0.02%
Operating Income Growth %	2.04%	0.34%	-0.24%	-0.55%	-0.32%	1.88%	-0.12%	-2.25%	0.6%	1.37%
EBITDA+	121.21M	146.02M	109.11M	57.56M	45.59M	94.47M	80.5M	-72.85M	-26.11M	18.73M
EBITDA Margin %	0.09%	0.11%	0.08%	0.05%	0.05%	0.08%	0.07%	-0.08%	-0.04%	0.03%
EBITDA Growth %	0.9%	0.2%	-0.25%	-0.47%	-0.21%	1.07%	-0.15%	-1.9%	0.64%	1.72%
D&A (Non-Cash Add-back)	35.85M	31.99M	22.53M	18.85M	19.41M	18.93M	13.91M	10.07M	7.16M	6.51M
EBIT	89.07M	115.07M	42.55M	38.71M	26.19M	75.54M	66.6M	-33.88M	-32.2M	-72.32M
Net Interest Income+	295K	1.16M	2.11M	3.98M	2.54M	436K	157K	1.82M	6.84M	12.15M
Interest Income	295K	1.16M	2.11M	3.98M	2.54M	436K	157K	1.82M	6.84M	12.15M
Interest Expense	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	207K	1.04M	3.67M	4.49M	3.38M	-4.74M	-1.09M	902K	14.14M	12.67M
Pretax Income+	85.56M	115.07M	90.71M	43.2M	29.57M	70.8M	65.5M	-82.02M	-19.14M	24.89M
Pretax Margin %	0.07%	0.09%	0.06%	0.04%	0.03%	0.06%	0.06%	-0.09%	-0.03%	0.04%
Income Tax+	36.98M	39.22M	71.28M	24.22M	3.78M	12.51M	16.12M	-13.04M	85.63M	12.53M
Effective Tax Rate %	0.57%	0.66%	0.21%	-0.06%	0.87%	0.82%	0.75%	0.84%	5.47%	0.5%
Net Income+	48.58M	75.85M	19.44M	-2.64M	25.79M	58.29M	49.39M	-68.99M	-104.77M	12.36M
Net Margin %	0.04%	0.06%	0.01%	-0%	0.03%	0.05%	0.04%	-0.07%	-0.14%	0.02%
Net Income Growth %	4.53%	0.56%	-0.74%	-1.14%	10.77%	1.26%	-0.15%	-2.4%	-0.52%	1.12%
Net Income (Continuing)	48.58M	70.31M	-11.13M	17.33M	25.79M	58.29M	49.39M	-68.99M	-104.77M	12.36M
Discontinued Operations	0	5.54M	30.57M	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	1.44	2.25	0.59	-0.08	0.81	1.90	1.59	-2.38	-3.57	0.42
EPS Growth %	5%	0.56%	-0.74%	-1.13%	11.18%	1.35%	-0.16%	-2.5%	-0.5%	1.12%
EPS (Basic)	1.47	2.32	0.61	-0.08	0.83	1.95	1.63	-2.38	-3.57	0.43
Diluted Shares Outstanding	33.79M	33.73M	33.04M	33.14M	31.96M	30.64M	31M	29.01M	29.36M	29.68M
Basic Shares Outstanding	33.16M	32.76M	32.1M	31.63M	30.94M	29.9M	30.24M	29.01M	29.36M	28.91M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	821.14M	962.78M	1.02B	857.9M	744.11M	893.18M	883.09M	834.29M	747.98M	758.03M
Cash & Short-Term Investments	278.27M	365.98M	329.8M	274.36M	195.71M	353.32M	271.52M	227.43M	283.65M	408.69M
Cash Only	181.94M	240.47M	202.87M	201.05M	190.21M	346.46M	263.77M	146.5M	176.72M	286.44M
Short-Term Investments	96.32M	125.51M	126.93M	73.32M	5.5M	6.86M	7.74M	80.92M	106.93M	122.25M
Accounts Receivable	290.64M	313.84M	255.12M	303.67M	277.17M	337.05M	261.16M	277.49M	185.06M	156.21M
Days Sales Outstanding	81.56	86.24	66.19	104.68	101.29	98.01	81.61	108.62	91.18	84.62
Inventory	213.12M	247.86M	245.89M	243.87M	235.49M	172.11M	315.67M	299.61M	248.85M	162.54M
Days Inventory Outstanding	83.37	98.75	88.79	124.13	122	71.14	143.62	160.37	184.77	124.16
Other Current Assets	3.21M	35.1M	244.92M	36M	35.74M	30.7M	34.75M	29.77M	30.42M	30.59M
Total Non-Current Assets+	229.43M	221.67M	192.9M	185.48M	211.7M	212.86M	195.44M	185.49M	99.16M	92.2M
Property, Plant & Equipment	22.38M	19.47M	20.66M	20.18M	46.6M	45.49M	36.51M	50.09M	45.56M	39.34M
Fixed Asset Turnover	58.11x	68.21x	68.10x	52.48x	21.43x	27.59x	31.99x	18.61x	16.26x	17.13x
Goodwill	81.72M	85.46M	85.46M	80.72M	80.72M	80.72M	80.72M	36.28M	36.28M	36.28M
Intangible Assets	48.95M	37.9M	24.99M	17.15M	10.1M	3.9M	1.86M	1.33M	0	0
Long-Term Investments	105K	-70.86M	-49.47M	-57.56M	8.15M	8.39M	7.58M	7.88M	8.37M	8.38M
Other Non-Current Assets	7.82M	78.84M	61.79M	67.43M	7.2M	6.03M	4.98M	4.21M	5.62M	5.87M
Total Assets+	1.05B	1.18B	1.21B	1.04B	955.81M	1.11B	1.08B	1.02B	847.14M	850.23M
Asset Turnover	1.24x	1.12x	1.16x	1.01x	1.04x	1.13x	1.08x	0.91x	0.87x	0.79x
Asset Growth %	0%	0.13%	0.02%	-0.14%	-0.08%	0.16%	-0.02%	-0.05%	-0.17%	0%
Total Current Liabilities+	315.77M	356.65M	424.44M	383.99M	298.39M	365.07M	341.05M	345.97M	264.35M	270.08M
Accounts Payable	90.55M	112.44M	91.2M	139.75M	80.53M	90.9M	73.73M	85.55M	46.85M	58.48M
Days Payables Outstanding	35.42	44.8	32.93	71.13	41.72	37.57	33.55	45.79	34.79	44.67
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	27.87M	33.1M	202.96M	199.47M	180.19M	209.23M	215.36M	202.46M	156.22M	23.29M
Current Ratio	2.60x	2.70x	2.39x	2.23x	2.49x	2.45x	2.59x	2.41x	2.83x	2.81x
Quick Ratio	1.93x	2.00x	1.81x	1.60x	1.70x	1.98x	1.66x	1.55x	1.89x	2.20x
Cash Conversion Cycle	129.51	140.2	122.04	157.68	181.57	131.58	191.68	223.19	241.16	164.11
Total Non-Current Liabilities+	26.09M	30.98M	53.64M	31.83M	48.73M	51.58M	40.67M	52.96M	47.3M	39.08M
Long-Term Debt	0	0	0	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	25.43M	25.51M	18.57M	34.09M	29.7M	19.8M
Deferred Tax Liabilities	0	0	0	0	-2.06M	-3.17M	-3.1M	-3.9M	0	0
Other Non-Current Liabilities	26.09M	30.98M	53.64M	31.83M	23.3M	26.07M	22.1M	18.87M	17.6M	19.29M
Total Liabilities	341.86M	387.64M	478.08M	415.82M	347.12M	416.65M	381.72M	398.93M	311.65M	309.16M
Total Debt+	0	0	0	0	34.79M	34.66M	27.79M	45.1M	41.57M	30.63M
Net Debt	-181.94M	-240.47M	-202.87M	-201.05M	-155.42M	-311.8M	-235.98M	-101.4M	-135.15M	-255.81M
Debt / Equity	-	-	-	-	0.06x	0.05x	0.04x	0.07x	0.08x	0.06x
Debt / EBITDA	-	-	-	-	0.76x	0.37x	0.35x	-	-	1.64x
Net Debt / EBITDA	-1.50x	-1.65x	-1.86x	-3.49x	-3.41x	-3.30x	-2.93x	-	-	-13.66x
Interest Coverage	-	-	-	-	-	-	-	-	-	-
Total Equity+	708.71M	796.82M	730.49M	627.55M	608.69M	689.38M	696.82M	620.86M	535.5M	541.07M
Equity Growth %	-0.02%	0.12%	-0.08%	-0.14%	-0.03%	0.13%	0.01%	-0.11%	-0.14%	0.01%
Book Value per Share	20.98	23.62	22.11	18.94	19.04	22.50	22.48	21.40	18.24	18.23
Total Shareholders' Equity	708.71M	796.82M	730.49M	627.55M	608.69M	689.38M	696.82M	620.86M	535.5M	541.07M
Common Stock	33K	33K	31K	32K	30K	30K	29K	29K	30K	29K
Retained Earnings	195.63M	228.54M	128.17M	-166.05M	-222.72M	-193.32M	-226.59M	-324.76M	-432.32M	-457.12M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	3K	1.94M	-851K	-15K	21K	-35K	149K	-535K	136K	241K
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	110.39M	115.17M	87.52M	-103.21M	13.53M	181.15M	-4.58M	-13.73M	56.85M	164.8M
Operating CF Margin %	0.08%	0.09%	0.06%	-0.1%	0.01%	0.14%	-0%	-0.01%	0.08%	0.24%
Operating CF Growth %	0.01%	0.04%	-0.24%	-2.18%	1.13%	12.39%	-1.03%	-2%	5.14%	1.9%
Net Income	48.58M	75.85M	19.44M	-18.33M	25.79M	58.29M	49.39M	-68.99M	-104.77M	12.36M
Depreciation & Amortization	35.85M	31.99M	26.09M	18.85M	19.41M	18.93M	13.91M	10.07M	7.16M	6.51M
Stock-Based Compensation	16.82M	18.95M	22.15M	26.46M	29.14M	30.5M	26M	17.73M	17.94M	22.68M
Deferred Taxes	-2.94M	-269K	21.84M	2.46M	-1.38M	-9.39M	4.5M	-21.84M	82.32M	1M
Other Non-Cash Items	-816K	-2.84M	46K	-52.38M	3.91M	11.24M	2.24M	48.01M	1.01M	2.51M
Working Capital Changes	12.89M	-8.51M	-2.04M	-80.27M	-63.34M	71.57M	-100.6M	1.28M	53.19M	119.73M
Change in Receivables	-14.95M	-23.21M	-98.96M	-43.05M	26.5M	-59.88M	75.89M	-16.33M	92.42M	28.85M
Change in Inventory	9.77M	-34.74M	1.97M	-82.16M	4.5M	55.51M	-147.43M	12.4M	47.59M	80.25M
Change in Payables	-14.99M	21.33M	-784K	45.5M	-56.61M	9.74M	-16.49M	11.86M	-38.95M	11.49M
Cash from Investing+	5.96M	-48.76M	-19.82M	-43.19M	49.46M	-16.84M	-9.98M	-79.52M	-27.43M	-26.16M
Capital Expenditures	-14M	-10.97M	-13.67M	-12.25M	-14.23M	-10.3M	-9.86M	-5.76M	-5.8M	-8.99M
CapEx % of Revenue	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	19.96M	-38.53M	-4.27M	-71.36M	63.69M	-6.54M	564K	-73.76M	0	0
Cash from Financing+	-75.64M	-7.89M	-105.3M	144.58M	-73.82M	-8.06M	-68.12M	-24.02M	797K	-28.91M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	44.67M	35.05M	14.27M	182.64M	8.64M	20.83M	-7.66M	5.16M	3.59M	7.58M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	96.39M	104.2M	73.85M	-115.46M	-705K	170.85M	-14.44M	-19.49M	51.05M	155.8M
FCF Margin %	0.07%	0.08%	0.05%	-0.11%	-0%	0.14%	-0.01%	-0.02%	0.07%	0.23%
FCF Growth %	0.08%	0.08%	-0.29%	-2.56%	0.99%	243.35%	-1.08%	-0.35%	3.62%	2.05%
FCF per Share	2.85	3.09	2.23	-3.48	-0.02	5.58	-0.47	-0.67	1.74	5.25
FCF Conversion (FCF/Net Income)	2.27x	1.52x	4.50x	39.11x	0.52x	3.11x	-0.09x	0.20x	-0.54x	13.33x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	40.27M	35.15M	32.09M	23.22M	8.88M	8.22M	20.59M	9.4M	7.19M	7.74M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	6.79%	10.08%	2.55%	-0.39%	4.17%	8.98%	7.13%	-10.47%	-18.12%	2.3%
Return on Invested Capital (ROIC)	11.56%	15.79%	11.98%	6.09%	4.46%	13.64%	11.91%	-12.69%	-5.43%	2.67%
Gross Margin	28.27%	31.03%	28.15%	32.27%	29.46%	29.65%	31.32%	26.87%	33.64%	29.08%
Net Margin	3.74%	5.71%	1.38%	-0.25%	2.58%	4.64%	4.23%	-7.4%	-14.14%	1.83%
Debt / Equity	-	-	-	-	0.06x	0.05x	0.04x	0.07x	0.08x	0.06x
FCF Conversion	2.27x	1.52x	4.50x	39.11x	0.52x	3.11x	-0.09x	0.20x	-0.54x	13.33x
Revenue Growth	-6.66%	2.12%	5.92%	-24.74%	-5.67%	25.68%	-6.94%	-20.17%	-20.55%	-9.05%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Connected Home	-	-	952.25M	771.06M	91.59M	129.93M	112.37M	558.82M	446.87M	385.95M
Connected Home Growth	-	-	-	-19.03%	-88.12%	41.87%	-13.52%	397.32%	-20.03%	-13.63%
S M B	-	-	-	-	108.51M	91.74M	117.46M	373.65M	-	-
S M B Growth	-	-	-	-	-	-15.46%	28.04%	218.10%	-	-
SMB	-	-	269.71M	287.76M	-	-	-	-	-	-
SMB Growth	-	-	-	6.69%	-	-	-	-	-	-
Arlo	-	-	399.21M	-	-	-	-	-	-	-
Arlo Growth	-	-	-	-	-	-	-	-	-	-
Retail	614.37M	763.55M	-	-	-	-	-	-	-	-
Retail Growth	-	24.28%	-	-	-	-	-	-	-	-
Commercial	264.85M	290.84M	-	-	-	-	-	-	-	-
Commercial Growth	-	9.81%	-	-	-	-	-	-	-	-
Service Provider	421.48M	273.91M	-	-	-	-	-	-	-	-
Service Provider Growth	-	-35.01%	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	779.36M	855.8M	927.95M	686.14M	637.57M	866.16M	759.87M	598.65M	489.97M	443.82M
UNITED STATES Growth	-	9.81%	8.43%	-26.06%	-7.08%	35.85%	-12.27%	-21.22%	-18.15%	-9.42%
EMEA	-	-	253.88M	-	-	-	-	-	148.92M	127.26M
EMEA Growth	-	-	-	-	-	-	-	-	-	-14.55%
Asia Pacific	-	-	194.97M	150.52M	145.66M	135.57M	151.92M	135.9M	87.57M	90.46M
Asia Pacific Growth	-	-	-	-22.80%	-3.23%	-6.93%	12.06%	-10.54%	-35.57%	3.30%
Americas Excluding United States	18.39M	27.85M	30.11M	14.55M	15.44M	31.81M	26.46M	18.56M	14.38M	12.22M
Americas Excluding United States Growth	-	51.49%	8.11%	-51.69%	6.13%	106.02%	-16.82%	-29.85%	-22.52%	-15.01%

Frequently Asked Questions

Valuation & Price

NETGEAR, Inc. (NTGR) has a price-to-earnings (P/E) ratio of 54.0x. This suggests investors expect higher future growth.

Growth & Financials

NETGEAR, Inc. (NTGR) reported $699.6M in revenue for fiscal year 2024. This represents a 41% decrease from $1.18B in 2011.

NETGEAR, Inc. (NTGR) saw revenue decline by 9.1% over the past year.

NETGEAR, Inc. (NTGR) reported a net loss of $26.1M for fiscal year 2024.

Dividend & Returns

NETGEAR, Inc. (NTGR) has a return on equity (ROE) of 2.3%. This is below average, suggesting room for improvement.

NETGEAR, Inc. (NTGR) had negative free cash flow of $13.5M in fiscal year 2024, likely due to heavy capital investments.

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