CLOUDFLARE INC - CLASS A (NET) Fundamental Analysis & Valuation

NYSE:NET • US18915M1071

Current stock price

202.155 USD
-0.87 (-0.43%)
Last:

This NET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. NET Profitability Analysis

1.1 Basic Checks

  • NET had positive earnings in the past year.
  • In the past year NET had a positive cash flow from operations.
  • NET had negative earnings in each of the past 5 years.
  • In the past 5 years NET always reported a positive cash flow from operatings.
NET Yearly Net Income VS EBIT VS OCF VS FCFNET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

1.2 Ratios

  • NET has a Return On Assets of -1.69%. This is comparable to the rest of the industry: NET outperforms 46.59% of its industry peers.
  • NET has a Return On Equity (-7.01%) which is comparable to the rest of the industry.
Industry RankSector Rank
ROA -1.69%
ROE -7.01%
ROIC N/A
ROA(3y)-3.58%
ROA(5y)-5.84%
ROE(3y)-12.88%
ROE(5y)-20.31%
ROIC(3y)N/A
ROIC(5y)N/A
NET Yearly ROA, ROE, ROICNET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

1.3 Margins

  • Looking at the Gross Margin, with a value of 74.51%, NET belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NET has remained more or less at the same level.
  • NET does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 74.51%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.72%
GM growth 5Y-0.54%
NET Yearly Profit, Operating, Gross MarginsNET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

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3

2. NET Health Analysis

2.1 Basic Checks

  • NET does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for NET has been increased compared to 1 year ago.
  • Compared to 5 years ago, NET has more shares outstanding
  • Compared to 1 year ago, NET has a worse debt to assets ratio.
NET Yearly Shares OutstandingNET Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
NET Yearly Total Debt VS Total AssetsNET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • NET has an Altman-Z score of 9.79. This indicates that NET is financially healthy and has little risk of bankruptcy at the moment.
  • NET's Altman-Z score of 9.79 is amongst the best of the industry. NET outperforms 94.32% of its industry peers.
  • The Debt to FCF ratio of NET is 12.53, which is on the high side as it means it would take NET, 12.53 years of fcf income to pay off all of its debts.
  • NET has a Debt to FCF ratio (12.53) which is comparable to the rest of the industry.
  • NET has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.35, NET is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 12.53
Altman-Z 9.79
ROIC/WACCN/A
WACC9.2%
NET Yearly LT Debt VS Equity VS FCFNET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.98 indicates that NET should not have too much problems paying its short term obligations.
  • NET has a Current ratio (1.98) which is in line with its industry peers.
  • NET has a Quick Ratio of 1.98. This is a normal value and indicates that NET is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of NET (1.98) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.98
NET Yearly Current Assets VS Current LiabilitesNET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. NET Growth Analysis

3.1 Past

  • NET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.67%, which is quite impressive.
  • Measured over the past years, NET shows a very strong growth in Earnings Per Share. The EPS has been growing by 91.50% on average per year.
  • NET shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.85%.
  • The Revenue has been growing by 38.13% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)22.67%
EPS 3Y91.5%
EPS 5YN/A
EPS Q2Q%47.37%
Revenue 1Y (TTM)29.85%
Revenue growth 3Y30.51%
Revenue growth 5Y38.13%
Sales Q2Q%33.6%

3.2 Future

  • Based on estimates for the next years, NET will show a very strong growth in Earnings Per Share. The EPS will grow by 44.81% on average per year.
  • NET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.82% yearly.
EPS Next Y24.94%
EPS Next 2Y27.41%
EPS Next 3Y33.23%
EPS Next 5Y44.81%
Revenue Next Year30.61%
Revenue Next 2Y29.03%
Revenue Next 3Y28.44%
Revenue Next 5Y26.82%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
NET Yearly Revenue VS EstimatesNET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2B 4B 6B 8B 10B
NET Yearly EPS VS EstimatesNET Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 4 6 8

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2

4. NET Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 219.73, which means the current valuation is very expensive for NET.
  • Compared to the rest of the industry, the Price/Earnings ratio of NET is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, NET is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 175.87, the valuation of NET can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as NET.
  • When comparing the Price/Forward Earnings ratio of NET to the average of the S&P500 Index (22.19), we can say NET is valued expensively.
Industry RankSector Rank
PE 219.73
Fwd PE 175.87
NET Price Earnings VS Forward Price EarningsNET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • NET's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 273.08
EV/EBITDA N/A
NET Per share dataNET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • A more expensive valuation may be justified as NET's earnings are expected to grow with 33.23% in the coming years.
PEG (NY)8.81
PEG (5Y)N/A
EPS Next 2Y27.41%
EPS Next 3Y33.23%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NET Dividend Analysis

5.1 Amount

  • No dividends for NET!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

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NET Fundamentals: All Metrics, Ratios and Statistics

CLOUDFLARE INC - CLASS A

NYSE:NET (3/30/2026, 12:11:04 PM)

202.155

-0.87 (-0.43%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-10
Earnings (Next)05-06
Inst Owners89.62%
Inst Owner Change-0.01%
Ins Owners0.68%
Ins Owner Change-0.08%
Market Cap71.15B
Revenue(TTM)2.17B
Net Income(TTM)-102.27M
Analysts76.5
Price Target238.3 (17.88%)
Short Float %2.68%
Short Ratio1.76
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.31%
Min EPS beat(2)2.4%
Max EPS beat(2)14.22%
EPS beat(4)3
Avg EPS beat(4)6.42%
Min EPS beat(4)-4.26%
Max EPS beat(4)14.22%
EPS beat(8)7
Avg EPS beat(8)12.19%
EPS beat(12)11
Avg EPS beat(12)29.05%
EPS beat(16)15
Avg EPS beat(16)296.37%
Revenue beat(2)2
Avg Revenue beat(2)2.52%
Min Revenue beat(2)2.14%
Max Revenue beat(2)2.9%
Revenue beat(4)4
Avg Revenue beat(4)1.82%
Min Revenue beat(4)1.08%
Max Revenue beat(4)2.9%
Revenue beat(8)8
Avg Revenue beat(8)1.19%
Revenue beat(12)10
Avg Revenue beat(12)0.87%
Revenue beat(16)13
Avg Revenue beat(16)0.89%
PT rev (1m)0%
PT rev (3m)-2.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.3%
EPS NY rev (1m)-5.53%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)2.39%
Valuation
Industry RankSector Rank
PE 219.73
Fwd PE 175.87
P/S 32.82
P/FCF 273.08
P/OCF 117.98
P/B 48.77
P/tB 59.76
EV/EBITDA N/A
EPS(TTM)0.92
EY0.46%
EPS(NY)1.15
Fwd EY0.57%
FCF(TTM)0.74
FCFY0.37%
OCF(TTM)1.71
OCFY0.85%
SpS6.16
BVpS4.15
TBVpS3.38
PEG (NY)8.81
PEG (5Y)N/A
Graham Number9.26
Profitability
Industry RankSector Rank
ROA -1.69%
ROE -7.01%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 74.51%
FCFM 12.02%
ROA(3y)-3.58%
ROA(5y)-5.84%
ROE(3y)-12.88%
ROE(5y)-20.31%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.72%
GM growth 5Y-0.54%
F-Score4
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 12.53
Debt/EBITDA N/A
Cap/Depr 180.54%
Cap/Sales 15.8%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.98
Quick Ratio 1.98
Altman-Z 9.79
F-Score4
WACC9.2%
ROIC/WACCN/A
Cap/Depr(3y)149.02%
Cap/Depr(5y)153.7%
Cap/Sales(3y)13%
Cap/Sales(5y)14.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.67%
EPS 3Y91.5%
EPS 5YN/A
EPS Q2Q%47.37%
EPS Next Y24.94%
EPS Next 2Y27.41%
EPS Next 3Y33.23%
EPS Next 5Y44.81%
Revenue 1Y (TTM)29.85%
Revenue growth 3Y30.51%
Revenue growth 5Y38.13%
Sales Q2Q%33.6%
Revenue Next Year30.61%
Revenue Next 2Y29.03%
Revenue Next 3Y28.44%
Revenue Next 5Y26.82%
EBIT growth 1Y-30.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year114.25%
EBIT Next 3Y56.3%
EBIT Next 5Y54.09%
FCF growth 1Y56.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.54%
OCF growth 3Y69.61%
OCF growth 5YN/A

CLOUDFLARE INC - CLASS A / NET Fundamental Analysis FAQ

What is the ChartMill fundamental rating of CLOUDFLARE INC - CLASS A (NET) stock?

ChartMill assigns a fundamental rating of 4 / 10 to NET.


What is the valuation status of CLOUDFLARE INC - CLASS A (NET) stock?

ChartMill assigns a valuation rating of 2 / 10 to CLOUDFLARE INC - CLASS A (NET). This can be considered as Overvalued.


How profitable is CLOUDFLARE INC - CLASS A (NET) stock?

CLOUDFLARE INC - CLASS A (NET) has a profitability rating of 3 / 10.


What is the expected EPS growth for CLOUDFLARE INC - CLASS A (NET) stock?

The Earnings per Share (EPS) of CLOUDFLARE INC - CLASS A (NET) is expected to grow by 24.94% in the next year.