NETGEAR (NTGR) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for NETGEAR (NTGR) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
NetGear Fundamentals
Stock Price Target: $43.81
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for NETGEAR in comparison to the Telecom Equipment industry and the S&P 500.
| NetGear | Telecom Equipment | S&P 500 | T-Bill (10Y) |
|---|---|---|---|
| 10.55% | 6.89% | 2.94% | 1.51% |
The current earnings yield for NETGEAR is 10.55%, in comparison to 2.94% for the S&P 500 and 1.51% for the 10-year treasury bond. The median earnings yield for the Telecom Equipment industry is 6.89%.
| NetGear | Telecom Equipment | S&P 500 |
|---|---|---|
| 10.50 | 31.80 | 34.01 |
NETGEAR is currently trading at a P/E of 10.50. The P/E for the Telecom Equipment industry is 31.80 and the P/E for the S&P 500 is 34.01.
Return on Invested Capital (ROIC)
| NetGear | Telecom Equipment | S&P 500 |
|---|---|---|
| 14.11% | 21.80% | 8.6% |
NETGEAR’s ROIC is currently 14.11% in comparison to 21.80% for the Telecom Equipment industry and 8.6% for the S&P 500.
| NetGear | Telecom Equipment | S&P 500 |
|---|---|---|
| -19.12% | 25.01% | 16.06% |
The YTD performance for NETGEAR is -19.12%. The Telecom Equipment industry has a YTD performance of 25.01% in comparison to the YTD S&P 500 performance of 16.06%.
News & Financial Reporting
- Q2 2021 Revenue of $308.8M (10.3% topline growth YoY)
- Operating income of $21.5 million (7.0% of net revenue), compared to $8.9 million in Q2 2020
- US consumer WiFi market share of 46% (added 33K subscribers in Q2 with end EOY goal of 650K)
Stock Price Target: $43.81
Company Overview
NETGEAR designs and markets networking and Internet connected products for consumers, businesses, and service providers in the US and internationally. The company operates through two segments: Connected Home and Small / Medium Business.
NETGEAR offers broadband modems, WiFi hotspots, routers and access points. It also provides Ethernet switches, access points, storage products and internet security products for small and mid-size businesses (in addition to technical support, parental controls, and cybersecurity protection for products).
The company markets and sells its products through online retailers, wholesale distributors, direct market resellers and broadband service providers. The company was founded in 1996 and is headquartered in San Jose, California. The current CEO is Patrick Lo.
Additional Financials
Be sure to add these picks to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.
This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.