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Yahoo
21-07-2025
- Business
- Yahoo
3 Stocks That May Be Trading Below Their Estimated Value In July 2025
In a market environment where major indices like the S&P 500 and Nasdaq are reaching new highs, investors are closely monitoring earnings reports and economic data for signs of continued growth amidst trade uncertainties. Identifying undervalued stocks in such a buoyant market can provide opportunities for those looking to capitalize on discrepancies between current prices and intrinsic values. Top 10 Undervalued Stocks Based On Cash Flows In The United States Name Current Price Fair Value (Est) Discount (Est) Royal Gold (RGLD) $154.76 $298.88 48.2% Robert Half (RHI) $41.86 $82.60 49.3% Repligen (RGEN) $116.25 $224.90 48.3% Rapid7 (RPD) $22.31 $43.54 48.8% e.l.f. Beauty (ELF) $117.63 $229.71 48.8% Carter Bankshares (CARE) $18.17 $35.50 48.8% Camden National (CAC) $42.27 $83.80 49.6% Atlantic Union Bankshares (AUB) $33.22 $65.45 49.2% ACNB (ACNB) $43.03 $85.02 49.4% Acadia Realty Trust (AKR) $18.55 $36.68 49.4% Click here to see the full list of 173 stocks from our Undervalued US Stocks Based On Cash Flows screener. Let's dive into some prime choices out of the screener. Extreme Networks Overview: Extreme Networks, Inc. provides software-driven networking solutions worldwide and has a market cap of approximately $2.33 billion. Operations: The company's revenue is primarily derived from the development and marketing of network infrastructure equipment and related software, totaling approximately $1.09 billion. Estimated Discount To Fair Value: 29.3% Extreme Networks is trading at US$17.52, significantly below its estimated fair value of US$24.8, suggesting it may be undervalued based on cash flows. Forecasted earnings growth of over 100% annually and a high future return on equity highlight strong potential profitability. Despite slower revenue growth compared to the market, recent product innovations like Extreme Platform ONE enhance operational efficiency and network management capabilities, potentially driving future financial performance amidst index exclusions and completed share buybacks. The growth report we've compiled suggests that Extreme Networks' future prospects could be on the up. Take a closer look at Extreme Networks' balance sheet health here in our report. Somnigroup International Overview: Somnigroup International Inc., along with its subsidiaries, is involved in the design, manufacture, distribution, and retail of bedding products both in the United States and internationally, with a market cap of $15.29 billion. Operations: Somnigroup International Inc. generates its revenue through the design, manufacture, distribution, and retail of bedding products across domestic and international markets. Estimated Discount To Fair Value: 15.7% Somnigroup International, trading at US$73.32, is below its estimated fair value of US$86.95, reflecting potential undervaluation based on cash flows. Forecasted earnings growth of 24% annually surpasses the broader U.S. market's growth expectations. However, recent shareholder dilution and debt refinancing highlight financial restructuring efforts; a repriced $1.6 billion term loan aims for annualized cash interest savings of up to $9 million if leverage targets are met, enhancing future cash flow potential amidst slower revenue expansion than desired. Our growth report here indicates Somnigroup International may be poised for an improving outlook. Click here to discover the nuances of Somnigroup International with our detailed financial health report. Similarweb Overview: Similarweb Ltd. offers digital data and analytics services to support essential business decisions across various regions, including the United States, Europe, the Asia Pacific, the United Kingdom, Israel, and internationally; it has a market cap of approximately $715.92 million. Operations: The company's revenue primarily comes from its On Line Financial Information Providers segment, generating $258.02 million. Estimated Discount To Fair Value: 45.7% Similarweb, trading at US$8.57, is valued below its estimated fair value of US$15.79, suggesting it might be undervalued based on cash flows. The company anticipates revenue growth of 14.2% annually and aims to achieve profitability within three years, surpassing average market expectations. Recent product innovations, like the launch of AI Agents for SEO and sales optimization, could enhance its competitive edge and drive future cash flow improvements despite current net losses. According our earnings growth report, there's an indication that Similarweb might be ready to expand. Dive into the specifics of Similarweb here with our thorough financial health report. Make It Happen Embark on your investment journey to our 173 Undervalued US Stocks Based On Cash Flows selection here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EXTR SGI and SMWB. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
18-05-2025
- Business
- Yahoo
Is There An Opportunity With Extreme Networks, Inc.'s (NASDAQ:EXTR) 33% Undervaluation?
The projected fair value for Extreme Networks is US$24.10 based on 2 Stage Free Cash Flow to Equity Current share price of US$16.22 suggests Extreme Networks is potentially 33% undervalued Our fair value estimate is 29% higher than Extreme Networks' analyst price target of US$18.75 Today we will run through one way of estimating the intrinsic value of Extreme Networks, Inc. (NASDAQ:EXTR) by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. We check all companies for important risks. See what we found for Extreme Networks in our free report. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$89.5m US$121.0m US$136.4m US$148.1m US$158.2m US$167.0m US$175.0m US$182.2m US$189.0m US$195.5m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Est @ 8.56% Est @ 6.82% Est @ 5.60% Est @ 4.74% Est @ 4.15% Est @ 3.73% Est @ 3.43% Present Value ($, Millions) Discounted @ 7.3% US$83.4 US$105 US$110 US$112 US$111 US$109 US$107 US$104 US$100 US$96.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$1.0b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.8%. We discount the terminal cash flows to today's value at a cost of equity of 7.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$195m× (1 + 2.8%) ÷ (7.3%– 2.8%) = US$4.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$4.4b÷ ( 1 + 7.3%)10= US$2.2b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$3.2b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$16.2, the company appears quite undervalued at a 33% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Extreme Networks as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.3%, which is based on a levered beta of 1.055. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Extreme Networks Strength Debt is not viewed as a risk. Weakness No major weaknesses identified for EXTR. Opportunity Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Threat Not expected to become profitable over the next 3 years. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Extreme Networks, there are three further aspects you should consider: Financial Health: Does EXTR have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does EXTR's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
30-01-2025
- Business
- Yahoo
Extreme Networks Second Quarter 2025 Earnings: EPS Beats Expectations
Revenue: US$279.4m (down 5.7% from 2Q 2024). Net income: US$7.38m (up 85% from 2Q 2024). Profit margin: 2.6% (up from 1.3% in 2Q 2024). EPS: US$0.056 (up from US$0.031 in 2Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates. Looking ahead, revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Communications industry in the US. Performance of the American Communications industry. The company's shares are down 8.7% from a week ago. While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on Extreme Networks' balance sheet. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
29-01-2025
- Business
- Yahoo
Black Box recognized as Extreme Networks' 2024 India Partner of the Year
MUMBAI, India, Jan. 29, 2025 /PRNewswire/ -- Black Box Limited (BSE: 500463) (NSE: BBOX), a premier trusted global digital infrastructure solution integrator delivering cutting-edge technology solutions and world-class consulting services to businesses around the globe, announced that it has been recognized as the '2024 India Partner of the Year' by Extreme Networks, a leader in AI-powered automation for networking, for the third time in a row. This prestigious accolade stands as a testament to Black Box's unwavering dedication to empowering clients on their digital transformation journeys. The high-performance, resilient solutions available through Black Box not only address today's needs but also establish a robust, future-ready foundation. Seamlessly integrating with existing IT infrastructures, these solutions ensure an exceptional and cohesive user experience every step of the way. The partnership underscored by Black Box achieving Extreme Networks' Diamond-certified status in APAC in 2024, enables Black Box to provide seamless network integration, project management, and service delivery for clients in and around India leveraging Extreme solutions. "The Diamond Partner Program Level is designed to recognize and reward partners who have achieved proven success in the marketplace with Extreme Networks. On behalf of Extreme Networks, we thank Black Box for their strong partnership and wish them continued success" said Hock Leong Choo, Director of Channel Sales for APAC. "We are thrilled to have been recognized with recent awards from Extreme Networks, which highlight our successful partnership across the India region," said Bhavin Barbhaya, Vice President of Networking (India) at Black Box. "These accolades represent our customer centricity in their digitization journey wherein we build high performance & intelligent network platform to deliver the required user experience on their applications across various platforms. We leverage our skilled solution architects, integration experts, proven execution in industries like manufacturing, mass transport, IT/ITES, and education, along with our global presence, to serve as a reliable IT partner. Together with Extreme Networks' solutions, we continue to be the preferred IT solutions and services partner for our clients' multi-country operations, driving impactful infrastructure solutions in their digital transformation journey." Learn more about Extreme Networks at Discover how Black Box can supercharge your connectivity here. About Black Box Trust, innovation, and experience drive Black Box's journey as the Premier Global Digital Infrastructure Solution Integrator. Black Box is a global digital infrastructure integrator delivering network and system integration services and solutions, support services, and technology products to businesses in the United States, Europe, India, Asia Pacific, the Middle East, and Latin America and has around 4,000 professionals globally. To learn more, visit the Black Box website at Follow the company on LinkedIn @BlackBox. Black Box® and the Double Diamond logo are registered trademarks of BB Technologies, other trademarks referenced herein are the property of their respective owners. Photo: View original content to download multimedia:
