# Netgear (NTGR.US)

Canonical: https://gigainvestors.com/s/NTGR

Analysis as of: 2026-10-16T07:30:42.628Z. Financial observations: FY2000–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $22.31 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 7 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 7

- Years with a net loss: 5

- Operating margin variation: 15.92×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.04×

- FY2019: 0.03×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: -0.09×

- FY2023: -0.04×

- FY2024: 0.02×

- FY2025: -0.05×

- LTM to Jun 2026: -0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.2%

- ROIC, second-lowest year: -15.3%

- Typical minus recent gross margin: -5.7 pp

- Typical gross margin (annual median): 30.5%

- Recent gross margin (lower of latest and 3-year median): 36.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.1%

- ROIC including acquisitions, ten-year median: 6.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 16.4%

- FY2018: 9.2%

- FY2019: 6.2%

- FY2020: 21.4%

- FY2021: 13.5%

- FY2022: -16.3%

- FY2023: -10.2%

- FY2024: 6.3%

- FY2025: -15.3%

- LTM to Jun 2026: -12.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$148M

- Net income, five-year total: -$145M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, change between three-year averages: 9.7 pp

- Working capital / revenue, final three-year average: 43.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $53M

- FY2022: -$65M

- FY2023: -$103M

- FY2024: $9.9M

- FY2025: -$43M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.4% vs -10.2%

- Per-share earnings: 1.44 to -1.15 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.7%

- Ordinary dilution, 5-year annual growth: -1.4%

- Market cap gain: -$1.1B

- Cumulative retained earnings: -$767M

- Diluted shares, 10-year annual growth: -1.7%

- Diluted shares, 5-year annual growth: -1.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$2.59

- Per-share value, starting three-year median: $1.44

- Per-share value, ending three-year median: -$1.15

- Buybacks concentrated in cheaper years (correlation): 0.32

- Average buyback yield: 5.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $27M

- Cumulative net income, 10 years: $32M

- ROIC, first three-year median: 16.4%

- ROIC, last three-year median: -10.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.25

- FY2017: $0.61

- FY2018: -$0.08

- FY2019: $0.81

- FY2020: $1.90

- FY2021: $1.59

- FY2022: -$2.38

- FY2023: -$3.57

- FY2024: $0.42

- FY2025: -$1.15

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 0.89×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 1850.2%

- Earnings backed by cash: Yes

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: -5.6%

- FY2018: 9.6%

- FY2019: 1.3%

- FY2020: -11.1%

- FY2021: 5.0%

- FY2022: -5.4%

- FY2023: -19.1%

- FY2024: -17.9%

- FY2025: -4.1%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Oct 2025 · "Netgear outlines Q3 revenue of $165M-$175M amid a 200 bps second-half gross margin headwind" (seekingalpha.com, Aug 2026) · sales -0.8%

Story as of 2026-10-16T09:59:16.927Z; price observation 2026-10-15.

- 2025-10-30: Netgear signals continued revenue growth and margin expansion while launching new enterprise security platform ([seekingalpha.com](https://seekingalpha.com/news/4510950-netgear-signals-continued-revenue-growth-and-margin-expansion-while-launching-new-enterprise?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-05: Netgear signals potential revenue, margin, and profitability challenges for 2026 amid memory cost pressures ([seekingalpha.com](https://seekingalpha.com/news/4547645-netgear-signals-potential-revenue-margin-and-profitability-challenges-for-2026-amid-memory?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-07: Netgear outlines Q3 revenue of $165M-$175M amid a 200 bps second-half gross margin headwind ([seekingalpha.com](https://seekingalpha.com/news/4628960-netgear-outlines-q3-revenue-of-165m-175m-amid-a-200-bps-second-half-gross-margin-headwind?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2025–2026

sales -0.8%; source https://www.sec.gov/Archives/edgar/data/1122904/000119312526051346/ntgr-20251231.htm; observed 2026-02-13.

- FY2017: $1.4B 

- FY2018: $1.1B 

- FY2019: $999M 

- FY2020: $1.3B 

- FY2021: $1.2B 

- FY2022: $932M 

- FY2023: $741M 

- FY2024: $674M 

- FY2025: $693M 

- FY2026: $688M 

### Gross margin · FY2026

gross margin 38.2%; source https://www.sec.gov/Archives/edgar/data/1122904/000119312526051346/ntgr-20251231.htm; observed 2026-02-13.

- FY2017: 28.1% 

- FY2018: 32.3% 

- FY2019: 29.5% 

- FY2020: 29.6% 

- FY2021: 31.3% 

- FY2022: 26.9% 

- FY2023: 33.6% 

- FY2024: 29.1% 

- FY2025: 36.2% 

- FY2026: 38.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in communication equipment; annual sales are USD 693.4 million.

- Source: https://www.sec.gov/Archives/edgar/data/1122904/000119312526051346/ntgr-20251231.htm (filed 2026-02-13); FY2025: revenue 693353000; grossProfit 250956000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); NTGR.US: NETGEAR, Inc. provides networking technologies for businesses, homes, and service providers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Enterprise and Consumer. It offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The company also provides pro AV Solutions, which includes Ethernet switches and WiFi access points; NETGEAR Engage Controller, a software that provides centralized, profile-based configuration, and unified management; NETGEAR Insight Remote Management; Pro Routers; enterprise-grade cloud managed or standalone access points; general purpose ethernet switches; and NETGEAR Exium Security Solutions, a security software that provides on-premises next-generation firewall and cloud-based secure access service edge. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, managed service provider, and broadband service providers, as well as through its direct online store. NETGEAR, Inc. was incorporated in 1996 and is headquartered in San Jose, California.

### Why customers stay

Margins ranged from 29.1% to 36.2% during 2023–25; it earns 6.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 33.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 29.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1122904/000119312526051346/ntgr-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 36.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 10-year return on capital observations [[2017,0.1638808643233641],[2018,0.09167683715440075],[2019,0.0622260415834317],[2020,0.2144656486468805],[2021,0.13484296856330505],[2022,-0.16285962888566258],[2023,-0.10223131817916659],[2024,0.06265604040085221],[2025,-0.1534763217016944],[2026,-0.1217612075886255]]; median 0.062441040992141955. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 50.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2016: growth capex 0; upkeep 10972000; cash acquisitions 0; owner earnings 96872000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2017: growth capex 0; upkeep 13674000; cash acquisitions 0; owner earnings 28291000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2018: growth capex 0; upkeep 12251000; cash acquisitions 14352000; owner earnings 3961000. Growth capex plus acquisitions / owner earnings = 3.623327442565009.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2019: growth capex 0; upkeep 14230000; cash acquisitions 0; owner earnings 30967000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2020: growth capex 0; upkeep 10296000; cash acquisitions 0; owner earnings 66928000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2021: growth capex 0; upkeep 9864000; owner earnings 53429000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: growth capex 0; upkeep 8994000; cash acquisitions 0; owner earnings 9883000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1122904/000119312526051346/ntgr-20251231.htm (filed 2026-02-13); FY2025: cash repurchases 50662000 USD.

### Are managers owners

Insiders own 4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); NTGR.US SharesStats.PercentInsiders = 3.9849999999999994 percentage points; cache date 2026-10-05.

### What the price says

The price is 0.9 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Closing price 22.31 USD; reporting-to-trading FX 1; FY2025 annual sales per share 24.237179711259483; price multiple 0.9204866352348658. FY2025 cash earnings/share -1.5131872567372209. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $50.48 per share

- 2016-11: $53.68 per share

- 2016-12: $54.33 per share

- 2017-01: $56.88 per share

- 2017-02: $54.78 per share

- 2017-03: $49.53 per share

- 2017-04: $47.14 per share

- 2017-05: $41.94 per share

- 2017-06: $43.09 per share

- 2017-07: $47.89 per share

- 2017-08: $47.99 per share

- 2017-09: $47.59 per share

- 2017-10: $46.64 per share

- 2017-11: $51.48 per share

- 2017-12: $58.73 per share

- 2018-01: $69.68 per share

- 2018-02: $55.73 per share

- 2018-03: $57.18 per share

- 2018-04: $55.28 per share

- 2018-05: $60.43 per share

- 2018-06: $62.48 per share

- 2018-07: $65.83 per share

- 2018-08: $70.83 per share

- 2018-09: $62.83 per share

- 2018-10: $55.46 per share

- 2018-11: $55.38 per share

- 2018-12: $52.01 per share

- 2019-01: $39.61 per share

- 2019-02: $35.85 per share

- 2019-03: $33.12 per share

- 2019-04: $31.03 per share

- 2019-05: $25.20 per share

- 2019-06: $25.29 per share

- 2019-07: $33.85 per share

- 2019-08: $34.72 per share

- 2019-09: $32.22 per share

- 2019-10: $27.17 per share

- 2019-11: $25.11 per share

- 2019-12: $24.51 per share

- 2020-01: $25.72 per share

- 2020-02: $18.87 per share

- 2020-03: $22.84 per share

- 2020-04: $23.98 per share

- 2020-05: $25.73 per share

- 2020-06: $25.89 per share

- 2020-07: $30.75 per share

- 2020-08: $33.35 per share

- 2020-09: $30.82 per share

- 2020-10: $30.82 per share

- 2020-11: $31.81 per share

- 2020-12: $40.63 per share

- 2021-01: $41.39 per share

- 2021-02: $40.00 per share

- 2021-03: $41.10 per share

- 2021-04: $37.21 per share

- 2021-05: $38.88 per share

- 2021-06: $38.32 per share

- 2021-07: $34.25 per share

- 2021-08: $35.73 per share

- 2021-09: $31.91 per share

- 2021-10: $28.83 per share

- 2021-11: $26.74 per share

- 2021-12: $29.21 per share

- 2022-01: $27.67 per share

- 2022-02: $26.61 per share

- 2022-03: $24.68 per share

- 2022-04: $21.70 per share

- 2022-05: $19.05 per share

- 2022-06: $18.52 per share

- 2022-07: $25.78 per share

- 2022-08: $23.59 per share

- 2022-09: $20.04 per share

- 2022-10: $19.65 per share

- 2022-11: $19.73 per share

- 2022-12: $18.11 per share

- 2023-01: $19.97 per share

- 2023-02: $18.10 per share

- 2023-03: $18.51 per share

- 2023-04: $14.13 per share

- 2023-05: $14.03 per share

- 2023-06: $14.16 per share

- 2023-07: $13.64 per share

- 2023-08: $13.18 per share

- 2023-09: $12.59 per share

- 2023-10: $12.64 per share

- 2023-11: $13.64 per share

- 2023-12: $14.58 per share

- 2024-01: $14.20 per share

- 2024-02: $14.99 per share

- 2024-03: $15.77 per share

- 2024-04: $14.78 per share

- 2024-05: $13.81 per share

- 2024-06: $15.30 per share

- 2024-07: $15.88 per share

- 2024-08: $16.23 per share

- 2024-09: $20.06 per share

- 2024-10: $21.92 per share

- 2024-11: $24.60 per share

- 2024-12: $27.87 per share

- 2025-01: $27.65 per share

- 2025-02: $26.30 per share

- 2025-03: $24.46 per share

- 2025-04: $24.12 per share

- 2025-05: $29.33 per share

- 2025-06: $29.07 per share

- 2025-07: $23.25 per share

- 2025-08: $27.17 per share

- 2025-09: $32.39 per share

- 2025-10: $34.72 per share

- 2025-11: $26.45 per share

- 2025-12: $24.53 per share

- 2026-01: $20.91 per share

- 2026-02: $20.62 per share

- 2026-03: $21.84 per share

- 2026-04: $25.27 per share

- 2026-05: $25.99 per share

- 2026-06: $23.35 per share

- 2026-07: $24.16 per share

- 2026-08: $21.16 per share

- 2026-09: $22.21 per share

- 2026-10: $22.31 per share

## Annual estimated value (USD per share)

- FY2016: low $33.37 per share, central $36.59 per share, high $40.87 per share

- FY2017: low $33.80 per share, central $37.16 per share, high $41.64 per share

- FY2018: low $14.66 per share, central $15.63 per share, high $16.92 per share

- FY2019: low $16.09 per share, central $17.55 per share, high $19.49 per share

- FY2020: low $24.60 per share, central $26.51 per share, high $29.06 per share

- FY2021: low $20.77 per share, central $22.53 per share, high $24.88 per share

- FY2022: low $18.09 per share, central $19.59 per share, high $21.59 per share

- FY2023: low $17.71 per share, central $18.89 per share, high $20.46 per share

- FY2024: low $16.95 per share, central $17.46 per share, high $18.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1122904/000119312526051346/ntgr-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.