Netgear (NTGR) AI Stock Analysis

• Market Cap: $956.99M
• Dividend Yield: N/A
• Average Volume (3M): 505.75K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.38
• Revenue Growth: 0.76%
• EPS Growth: N/A
• Country: US
• Employees: 636
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.06
• Shares Outstanding: 29,008,556
• 10 Day Avg. Volume: 474,846
• 30 Day Avg. Volume: 505,751
• PEG Ratio: -0.58
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 5.17
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: -19.56
• 1Y Price Target: $40.00
• Price Target Upside: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $36.00 ▲(8.34% Upside)

Netgear's overall stock score is driven by strong technical analysis and positive earnings call sentiment. Financial performance is solid, with good profitability and cash flow management, though there are concerns about declining equity. The valuation is fair, but the lack of a dividend yield may deter some investors.

Positive Factors

Gross Margin Improvement

Record-breaking gross margins indicate strong cost management and pricing power, enhancing profitability and competitive positioning.

NFB Segment Growth

Significant growth in the NFB segment suggests successful market penetration and product acceptance, supporting long-term revenue expansion.

Strategic Acquisition

The acquisition of Exium enhances Netgear's product offerings, potentially increasing market share and strengthening its competitive edge.

Negative Factors

Supply Constraints

Supply constraints in the ProAV line could hinder revenue growth and customer satisfaction, impacting market competitiveness until resolved.

Mobile Segment Revenue Decline

Declining mobile segment revenue reflects challenges in market demand or competition, potentially affecting overall revenue stability.

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, requiring effective cost management to sustain financial health.

Netgear Business Overview & Revenue Model

Company Description

NETGEAR, 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.

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's financial performance shows moderate revenue growth and improved profitability, supported by strong cost management. The balance sheet reflects low leverage and good equity levels, though there are concerns over declining equity. Cash flow performance is robust, with effective cash generation and utilization, despite fluctuations in free cash flow growth.

Income Statement

Netgear's TTM (Trailing-Twelve-Months) revenue shows a moderate increase, with a revenue growth rate of 3.58% from the previous annual period. Gross profit margin improved slightly to 33.84%, reflecting good cost management, while the net profit margin increased significantly to 9.13%, indicating enhanced profitability. However, EBIT and EBITDA margins are low, at 8.37% and -3.90% respectively, suggesting potential weaknesses in operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The equity ratio is healthy at 65.09%, suggesting a solid equity base. Return on equity (ROE) improved to 12.18%, reflecting better profitability. However, the slight decrease in stockholders' equity over time poses a potential risk to long-term financial stability.

Cash Flow

Netgear demonstrates strong cash flow management, with a free cash flow growth rate of -29.69%, indicating some volatility but maintaining positive free cash flow. Operating cash flow to net income ratio is 1.86, showing efficient cash generation relative to net income. The free cash flow to net income ratio of 1.72 further underscores effective cash utilization.

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	-24.70M	-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: 33.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 33.23 is below the 20-day moving average (MA) of 33.29, above the 50-day MA of 30.02, and above the 200-day MA of 27.44, indicating a neutral trend. The MACD of 0.72 indicates Positive momentum. The RSI at 57.25 is Neutral, neither overbought nor oversold. The STOCH value of 35.18 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
HLIT	―	$1.19B	17.90	16.36%	―	24.14%	16.17%
DGII	―	$1.44B	33.59	7.21%	―	-2.37%	147.46%
NTGR	―	$956.99M	15.42	12.97%	―	0.76%	―
EXTR	―	$2.79B	―	-16.44%	―	2.05%	91.37%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADTN	―	$806.13M	-7.55	-53.68%	―	3.52%	81.33%
AVNW	―	$320.82M	275.38	0.52%	―	6.50%	-88.62%

Netgear Corporate Events

NETGEAR’s Earnings Call Highlights Growth Amid Challenges

NETGEAR’s recent earnings call showcased a robust financial performance, marked by record gross margins and notable growth in key segments like NFB. While the company celebrated these achievements, challenges such as supply constraints and a dip in the mobile segment’s performance were also acknowledged. Despite these hurdles, NETGEAR remains committed to long-term growth strategies and is actively expanding its services offerings.

NETGEAR Reports Strong Q2 2025 Results with Revenue Growth

NETGEAR, Inc., a leader in innovative networking technologies, provides solutions for businesses, homes, and service providers, offering reliable and high-performance networking products. In its latest earnings report for the second quarter of 2025, NETGEAR announced a significant increase in net revenue, reaching $170.5 million, which is an 18.5% rise from the previous year. The company also reported record high gross margins and a positive contribution margin across all business units.

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.

The most recent analyst rating on (NTGR) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Netgear stock, see the NTGR Stock Forecast page.