$Extreme Networks (EXTR.US)$ In the analysis of 2023.2.23, i...

In the analysis of 2023.2.23, it was excluded due to high leverage, and the stock price has since dropped by 40%.

A USA company listed in 1999, mainly engaged in software-driven network business, operating in the global market, with the current price of 11.52.

Revenue has grown for 4 years out of the past 5 years, with an average growth rate of 5.9%, operating profit turned around in 2021 and increased by 53% in 2023, while net income grew by 76.4% in 2023. Interest expense accounted for 12.5% of the operating profit in 2023, indicating a heavy interest burden. The gross margin has increased from 55.4% to 57.5% in the past 5 years, with the net margin reaching 6% in 2023.

The revenue shrank by 9.3% in the first 3 quarters of 2024, the operating profit significantly shrunk by 86.3%, and the net income turned into a loss. This kind of low net margin makes the profit highly sensitive to revenue changes.

Currently, the PE ratio is 19.9, and the TTM PE ratio is in loss, which is not very attractive.