ROKU INC (ROKU)
US77543R1023 - Common Stock
ROKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 76 industry peers in the Entertainment industry. ROKU has a great financial health rating, but its profitability evaluates not so good. While showing a medium growth rate, ROKU is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ROKU has reported negative net income.
In the past year ROKU had a positive cash flow from operations.
ROKU had negative earnings in 4 of the past 5 years.
In the past 5 years ROKU always reported a positive cash flow from operatings.
1.2 Ratios
ROKU has a worse Return On Assets (-13.65%) than 64.47% of its industry peers.
Looking at the Return On Equity, with a value of -24.06%, ROKU is in line with its industry, outperforming 51.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.65% | ||
| ROE | -24.06% | ||
| ROIC | N/A |
ROA(3y)-7.33%
ROA(5y)-5.37%
ROE(3y)-13.52%
ROE(5y)-10.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 45.34%, ROKU is in the better half of the industry, outperforming 60.53% of the companies in the same industry.
ROKU's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for ROKU so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.2%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
ROKU does not have a ROIC to compare to the WACC, probably because it is not profitable.
ROKU has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ROKU has been increased compared to 5 years ago.
There is no outstanding debt for ROKU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.45 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU's Altman-Z score of 3.45 is amongst the best of the industry. ROKU outperforms 85.53% of its industry peers.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.45 |
ROIC/WACCN/A
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.58 indicates that ROKU has no problem at all paying its short term obligations.
ROKU's Current ratio of 2.58 is fine compared to the rest of the industry. ROKU outperforms 78.95% of its industry peers.
ROKU has a Quick Ratio of 2.50. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.50, ROKU is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
ROKU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.53%, which is quite good.
The Revenue has grown by 15.67% in the past year. This is quite good.
Measured over the past years, ROKU shows a very strong growth in Revenue. The Revenue has been growing by 36.24% on average per year.
EPS 1Y (TTM)16.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.64%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y25.13%
Revenue growth 5Y36.24%
Sales Q2Q%18.96%
3.2 Future
Based on estimates for the next years, ROKU will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.81% on average per year.
Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 11.18% on average per year.
EPS Next Y64.03%
EPS Next 2Y32.98%
EPS Next 3Y25.15%
EPS Next 5Y16.81%
Revenue Next Year13.34%
Revenue Next 2Y12.74%
Revenue Next 3Y12.26%
Revenue Next 5Y11.18%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ROKU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year ROKU is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROKU indicates a rather cheap valuation: ROKU is cheaper than 81.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.39 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as ROKU's earnings are expected to grow with 25.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.98%
EPS Next 3Y25.15%
5. Dividend
5.1 Amount
No dividends for ROKU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROKU INC
NASDAQ:ROKU (5/31/2024, 7:03:42 PM)
After market: 57.45 +0.05 (+0.09%)57.4
+0.08 (+0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.65% | ||
| ROE | -24.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.53%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y64.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.67%
Revenue growth 3Y25.13%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y