Netgear (NTGR) AI Stock Analysis

• Market Cap: $842.12M
• Dividend Yield: N/A
• Average Volume (3M): 427.58K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.43
• 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: 262,007
• 30 Day Avg. Volume: 427,580
• 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: 0.57
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: -19.56
• 1Y Price Target: $35.00
• Price Target Upside: 22.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $30.00 ▲(4.79% 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

Record-Breaking Gross Margins

Achieving record gross margins indicates strong cost management and pricing power, enhancing long-term profitability and competitive positioning.

NFB Business Segment Growth

Significant growth in the NFB segment shows successful market penetration and product adoption, supporting sustained revenue expansion.

Exium Acquisition

The acquisition of Exium enhances NETGEAR's cybersecurity offerings, aligning with strategic goals to expand in cloud-based solutions, bolstering long-term growth.

Negative Factors

Supply Constraints in ProAV

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

Mobile Segment Revenue Decline

Declining revenue in the mobile segment suggests challenges in maintaining market share, potentially affecting overall growth and diversification.

Increased Operating Expenses

Rising operating expenses may pressure margins and profitability, necessitating efficiency improvements to sustain long-term 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: 28.63
• 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 28.63 is above the 20-day moving average (MA) of 27.57, above the 50-day MA of 26.68, and above the 200-day MA of 26.63, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.37 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	36.76B	50.84	106.53%	0.43%	33.45%	103.34%
NTGR	70 Outperform	$842.12M	13.47	12.97%	―	0.76%	―
PI	68 Neutral	5.57B	26,594.44	0.34%	―	13.96%	-96.21%
ADTN	56 Neutral	702.06M	-6.64	-64.24%	―	3.52%	81.33%
SATS	54 Neutral	20.66B	-63.92	-1.96%	―	-35.86%	85.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.