Netgear (NTGR) AI Stock Analysis

• Market Cap: $785.84M
• Dividend Yield: N/A
• Average Volume (3M): 532.76K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.44
• Revenue Growth: 0.76%
• EPS Growth: N/A
• Country: US
• Employees: 636
• Sector: Technology
• Sector Strength: 83
• Industry: Communication Equipment
• EPS (TTM): 0.06
• Shares Outstanding: 29,008,556
• 10 Day Avg. Volume: 445,309
• 30 Day Avg. Volume: 532,761
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: -17.73
• 1Y Price Target: $35.00
• Price Target Upside: 29.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $30.00 ▲(10.62% Upside)

Netgear's overall stock score of 70 reflects a solid financial performance with moderate growth and profitability, supported by strategic corporate actions. The technical analysis indicates a positive trend, though caution is advised due to potential bearish signals. Valuation is attractive, and the positive sentiment from the earnings call further strengthens the outlook.

Positive Factors

Business Turnaround

CJ Prober, the new CEO, has orchestrated a business turnaround, believed to be in its early stages.

Recurring Revenue

Enhanced subscription services after the VAAG acquisition position the company to capitalize on a rapid growth, high retention recurring revenue stream as demand for consumer security increases.

Revenue Growth

The NETGEAR for Business segment is poised for double-digit year-over-year revenue growth due to a differentiated ProAV platform and expanding broadcasting partnerships.

Negative Factors

Profitability Risks

There is uncertainty around strategy turnarounds and inherent risks associated with the company’s push back towards profitability.

Strategy Uncertainty

The company deserves a valuation closer to comps, with an appropriate discount due to uncertainty around strategy turnarounds and inherent risks associated with the push back towards profitability.

Netgear Business Overview & Revenue Model

Company Description

Netgear, Inc. (NTGR) is a global networking company that specializes in providing innovative networking solutions for homes and small to medium-sized businesses. Established in 1996, Netgear’s product portfolio includes a wide range of wireless and wired networking equipment such as routers, switches, access points, and network storage solutions. The company also offers smart home products and security cameras, positioning itself as a leader in both consumer and business networking sectors.

How the Company Makes Money

Netgear generates revenue primarily through the sale of its networking hardware and software products. The company has multiple key revenue streams, including retail sales of consumer products through various distribution channels, direct sales to businesses, and partnerships with service providers. Additionally, Netgear earns income from subscription services related to its products, such as cloud storage and network management solutions. Strategic partnerships with telecom companies and retailers bolster its market presence and contribute to consistent sales growth, while ongoing innovation in product design and functionality helps differentiate its offerings in a competitive landscape.

Netgear Financial Statement Overview

Summary

Netgear showcases a stable financial position with a robust balance sheet and positive operating cash flows. Despite challenges in revenue growth and operational efficiency, the company is managing its debt effectively and improving its profitability metrics.

Income Statement

Netgear's TTM (Trailing-Twelve-Months) revenue has declined compared to the previous year, indicating challenges in maintaining its sales momentum. The gross profit margin stands at 30.4%, suggesting moderate efficiency in managing production costs. However, the net profit margin is low at 3.7%, reflecting difficulties in controlling operational expenses. Additionally, the EBIT and EBITDA margins are weak, indicating limited operating profitability and cash flow generation.

Balance Sheet

Netgear maintains a strong equity position, with an equity ratio of 65.6%. The debt-to-equity ratio is low, demonstrating prudent debt management. Return on equity has improved to 4.7% from negative figures, indicating a recovery in profitability. Overall, the balance sheet is stable, albeit with room for enhancing asset utilization.

Cash Flow

Operating cash flow is solid relative to net income, with a ratio of 5.56, indicating strong cash generation capability. Free cash flow has grown, reflecting improved cash management. However, the free cash flow to net income ratio is high, suggesting potential overreliance on free cash flow in the short term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	697.87M	673.76M	740.84M	932.47M	1.17B	1.26B
Gross Profit	236.17M	195.93M	249.25M	250.55M	365.84M	372.15M
EBITDA	-27.24M	-65.80M	-25.04M	-23.82M	80.50M	94.47M
Net Income	63.73M	12.36M	-104.77M	-68.99M	49.39M	58.29M
Balance Sheet
Total Assets	803.55M	850.23M	847.14M	1.02B	1.08B	1.11B
Cash, Cash Equivalents and Short-Term Investments	363.47M	408.69M	283.65M	227.43M	271.52M	353.32M
Total Debt	16.30M	30.63M	41.57M	45.10M	18.57M	25.51M
Total Liabilities	280.39M	309.16M	311.65M	398.93M	381.72M	416.65M
Stockholders Equity	523.16M	541.07M	535.50M	620.86M	696.82M	689.38M
Cash Flow
Free Cash Flow	109.54M	155.80M	51.05M	-19.49M	-14.44M	170.85M
Operating Cash Flow	118.64M	164.80M	56.85M	-13.73M	-4.58M	181.15M
Investing Cash Flow	-30.15M	-26.16M	-27.43M	-79.52M	-9.98M	-16.84M
Financing Cash Flow	-24.57M	-28.91M	797.00K	-24.02M	-68.12M	-8.06M

Netgear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTGR, the sentiment is Positive. The current price of 27.12 is above the 20-day moving average (MA) of 25.03, above the 50-day MA of 26.81, and above the 200-day MA of 26.36, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTGR.

Netgear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UI	72 Outperform	$32.38B	44.21	186.53%	0.46%	33.45%	103.34%
NTGR	70 Outperform	$785.84M	12.57	12.97%	―	0.76%	―
PI	70 Outperform	$5.20B	24,841.67	0.42%	―	13.96%	-96.21%
ADTN	57 Neutral	$742.88M	―	-53.68%	―	3.52%	81.33%
Sector *	54 Neutral	$298.66M	3.86	-5.40%	2.71%	9.11%	-73.63%
SATS	50 Neutral	$14.64B	―	-1.60%	―	-35.86%	85.81%
FKWL	―	$50.91M	―	-4.62%	―	―	―

Netgear Corporate Events

Netgear Appoints Jonathan Oakes as SVP of Home Networking

On June 2, 2025, NETGEAR, Inc. appointed Jonathan Oakes as Senior Vice President of Home Networking, a role in which he will oversee the company’s home networking business, including hardware, software, and subscription services. Oakes, a seasoned product innovator with over two decades of experience, is expected to drive the next generation of reliable, secure, and intelligent connectivity for modern households. His appointment is part of NETGEAR’s ongoing transformation and commitment to customer-focused product development. The company anticipates that Oakes’ leadership will be instrumental in continuing to power extraordinary experiences for customers and enhancing NETGEAR’s position in the industry.

Netgear Announces Acquisition of Exium Inc.

On June 5, 2025, NETGEAR announced its agreement to acquire Exium Inc., a cybersecurity software company, to enhance its cloud-based solutions for business connectivity. This acquisition aims to integrate Exium’s Secure Access Service Edge (SASE) platform into NETGEAR’s offerings, aligning with its strategy to provide comprehensive networking and security solutions for small and medium enterprises. The transaction, expected to close by the end of Q2 2025, will not materially impact NETGEAR’s financial position for the year. Exium’s expertise will bolster NETGEAR’s ability to deliver an all-in-one solution, addressing the growing demand for cloud-based networking and security services.

Netgear Holds Annual Stockholders Meeting with Key Votes

On May 29, 2025, Netgear, Inc. held its Annual Meeting of Stockholders virtually, where stockholders voted on five proposals. These included the election of seven directors, ratification of PricewaterhouseCoopers as the independent auditor, approval of executive compensation, the 2025 Equity Incentive Plan, and an amendment to the 2003 Employee Stock Purchase Plan. The meeting saw significant engagement with 25,361,311 shares represented, indicating active participation from stakeholders. The results of the votes reflect the company’s ongoing governance and strategic planning efforts, with implications for its operational and financial strategies moving forward.