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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1526
Positioning
Market Dominance
Manufacturing
Computer Hardware
$2.2B
Edward B. Meyercord
ExtremeCloud IQ, an ML/AI powered, wired, and wireless cloud network management solution that offers advanced visibility and control over users, devices, and applications. ExtremeSwitching portfolio that includes access edge products that offer physical presentations along with options to deliver Ethernet or convergence-friendly Power-over-Ethernet (POE), including high-power universal POE)
Headcount
2.6K
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = EXTR ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EXTR EXTREME NETWORKS INC | 53 | 82 | 62 | 32 | 77.5x | 39.9x | 25.4% | 2.1% | 61.6% | 4.0% | 2.0% | 18.1% | 0.0% | 1118.0x | $2.2B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
EXTREME NETWORKS INC (EXTR) receives a "Hold" rating with a composite score of 53.0/100. It ranks #1526 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
San Jose, California
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for EXTR.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 82 | 95 | -13DRAG |
| MOMENTUM | 32 | 19 | +13ALPHA |
| VALUATION | 62 | 55 | +7ALPHA |
| INVESTMENT | 26 | 26 | 0NEUTRAL |
| STABILITY | 63 | 61 | +2NEUTRAL |
| SHORT INT | 52 | 58 | -6DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 25.4% (sector -1.9%)
GM 62% vs sector 44%, OM 4% vs sector 3%
Capital turnover N/A, R&D intensity 18.4%
Rev growth 18%, 11yr history
Interest coverage 3.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate EXTREME NETWORKS INC (EXTR) as a Hold with a composite score of 53.0/100 at a current price of $13.73. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
EXTREME NETWORKS INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 53.0/100 places it at rank #1526 in our full universe.
Narrow
High
Poor
Undervalued
Gross margins of 62% signal strong pricing power.
Returns on equity of 25.4% exceed cost of capital.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 77.5x leaves little room for execution misses.
Leverage of 1118% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
EXTREME NETWORKS INC represents a hold based on multi-factor quantitative performance.
Our model assigns EXTREME NETWORKS INC a Hold rating, with a composite score of 53.0/100 and 3 out of 5 stars. Ranked #1526 of 7,333 stocks, EXTR presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
EXTR earns a quality score of 82/100, indicating above-average business quality. The company reports a return on equity of 25.4% (sector avg: -1.9%), gross margins of 61.6% (sector avg: 44.1%), net margins of 2.0% (sector avg: 1.0%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
EXTR's value score of 62/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 77.55x, an EV/EBITDA of 39.86x, a P/B ratio of 19.67x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
EXTREME NETWORKS INC's investment score of 26/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 18.1% vs. a sector average of 6.7% and a return on assets of 2.1% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
EXTR is currently showing below-average momentum at 32/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 18.1% year-over-year, while a beta of 1.49 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 63/100, EXTR exhibits average financial resilience. Key stability metrics include a beta of 1.49 and a debt-to-equity ratio of 1118.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 52/100 for EXTR suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include above-average market sensitivity (beta: 1.49), elevated leverage (D/E: 1118.00x). With a $2.2B market cap (mid-cap), EXTREME NETWORKS INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
EXTREME NETWORKS INC is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1526 of 7,333 overall (79th percentile). Key comparisons include ROE of 25.4% exceeding the -1.9% sector median and operating margins of 4.0% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While EXTR currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Quality (82) vs Investment (26) — closing this gap could shift the rating.
EV/EBITDA 248% ABOVE SECTOR MEDIAN
ROE 1435% BELOW SECTOR MEDIAN
Gross Margin 40% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
On January 29, the price target on Extreme Networks (NASDAQ:EXTR) was reduced from $21 to $17 by UBS analyst David Vogt.
Extreme Networks reported Q1 fiscal 2026 results with 15% revenue growth and beat analyst expectations, but experienced stock decline due to lower gross margins and slower projected revenue growth for upcoming quarters.
Extreme Networks reported strong Q4 FY2025 financial results, beating revenue and earnings estimates with 19.6% year-over-year revenue growth and significant margin improvements, driven by cloud and AI-powered networking solutions.
Tanmai Gopal of PromptQL said tech people have a bad habit of thinking "this affects me. So it's going to affect everyone like that."
In February 2026, Extreme Networks announced that its E-Rate-eligible Extreme Platform ONE and related fabric, Wi‑Fi 7, and switching solutions are now available to help K‑12 schools and public libraries modernize and automate their networks. An interesting angle for investors is how packaging these AI‑driven, education‑focused products with E-Rate support tools could deepen Extreme’s presence in a recurring, budget-constrained customer base. We’ll now examine how this push into AI-powered,...