ROKU INC (1ROKU.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ROKU - US77543R1023 - Common Stock
96.41 EUR
-0.31 (-0.32%)
Taking everything into account, 1ROKU scores 4 out of 10 in our fundamental rating. 1ROKU was compared to 48 industry peers in the Entertainment industry. No worries on liquidiy or solvency for 1ROKU as it has an excellent financial health rating, but there are worries on the profitability. 1ROKU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1ROKU has reported negative net income.
- In the past year 1ROKU had a positive cash flow from operations.
- 1ROKU had negative earnings in 4 of the past 5 years.
- Each year in the past 5 years 1ROKU had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -0.63%, 1ROKU perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
- 1ROKU has a Return On Equity of -1.05%. This is comparable to the rest of the industry: 1ROKU outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -1.05% | ||
| ROIC | N/A |
ROA(3y)-10.31%
ROA(5y)-5.15%
ROE(3y)-18.17%
ROE(5y)-9.41%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- 1ROKU has a Gross Margin of 43.58%. This is comparable to the rest of the industry: 1ROKU outperforms 41.67% of its industry peers.
- In the last couple of years the Gross Margin of 1ROKU has remained more or less at the same level.
- 1ROKU does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 43.58% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.84%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
- 1ROKU does not have a ROIC to compare to the WACC, probably because it is not profitable.
- 1ROKU has more shares outstanding than it did 1 year ago.
- 1ROKU has more shares outstanding than it did 5 years ago.
- There is no outstanding debt for 1ROKU. 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
- 1ROKU has an Altman-Z score of 6.66. This indicates that 1ROKU is financially healthy and has little risk of bankruptcy at the moment.
- 1ROKU has a better Altman-Z score (6.66) than 89.58% of its industry peers.
- 1ROKU 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 | 6.66 |
ROIC/WACCN/A
WACC10.41%
2.3 Liquidity
- A Current Ratio of 2.74 indicates that 1ROKU has no problem at all paying its short term obligations.
- The Current ratio of 1ROKU (2.74) is better than 89.58% of its industry peers.
- 1ROKU has a Quick Ratio of 2.62. This indicates that 1ROKU is financially healthy and has no problem in meeting its short term obligations.
- 1ROKU has a Quick ratio of 2.62. This is amongst the best in the industry. 1ROKU outperforms 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 83.33% over the past year.
- The Revenue has grown by 16.61% in the past year. This is quite good.
- The Revenue has been growing by 29.51% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%366.67%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%13.97%
3.2 Future
- Based on estimates for the next years, 1ROKU will show a very strong growth in Earnings Per Share. The EPS will grow by 38.68% on average per year.
- The Revenue is expected to grow by 12.29% on average over the next years. This is quite good.
EPS Next Y137.2%
EPS Next 2Y84.44%
EPS Next 3Y66.67%
EPS Next 5Y38.68%
Revenue Next Year16.08%
Revenue Next 2Y14.88%
Revenue Next 3Y13.86%
Revenue Next 5Y12.29%
3.3 Evolution
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- 1ROKU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 89.78, which means the current valuation is very expensive for 1ROKU.
- Based on the Price/Forward Earnings ratio, 1ROKU is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
- 1ROKU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 89.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ROKU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.88 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- 1ROKU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as 1ROKU's earnings are expected to grow with 66.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y84.44%
EPS Next 3Y66.67%
5. Dividend
5.1 Amount
- 1ROKU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ROKU INC / 1ROKU.MI FAQ
Can you provide the ChartMill fundamental rating for ROKU INC?
ChartMill assigns a fundamental rating of 4 / 10 to 1ROKU.MI.
Can you provide the valuation status for ROKU INC?
ChartMill assigns a valuation rating of 2 / 10 to ROKU INC (1ROKU.MI). This can be considered as Overvalued.
Can you provide the profitability details for ROKU INC?
ROKU INC (1ROKU.MI) has a profitability rating of 2 / 10.
How financially healthy is ROKU INC?
The financial health rating of ROKU INC (1ROKU.MI) is 8 / 10.