CLOUDFLARE INC - CLASS A (NET) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:NET • US18915M1071

173.21 USD
+10.16 (+6.23%)
At close: Feb 6, 2026
175 USD
+1.79 (+1.03%)
After Hours: 2/6/2026, 8:04:00 PM
Fundamental Rating

4

NET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. While NET seems to be doing ok healthwise, there are quite some concerns on its profitability. NET shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year NET was profitable.
  • NET had a positive operating cash flow in the past year.
  • In the past 5 years NET always reported negative net income.
  • NET had a positive operating cash flow in 4 of the past 5 years.
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 0 200M -200M

1.2 Ratios

  • The Return On Assets of NET (-1.78%) is comparable to the rest of the industry.
  • With a Return On Equity value of -7.66%, NET perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
Industry RankSector Rank
ROA -1.78%
ROE -7.66%
ROIC N/A
ROA(3y)-5.51%
ROA(5y)-7.23%
ROE(3y)-20.88%
ROE(5y)-21.83%
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 0 0 0 0 0

1.3 Margins

  • The Gross Margin of NET (75.20%) is better than 94.32% of its industry peers.
  • 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 75.2%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.12%
GM growth 5Y-0.15%
NET Yearly Profit, Operating, Gross MarginsNET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

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5

2. Health

2.1 Basic Checks

  • NET does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • NET has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, NET has more shares outstanding
  • The debt/assets ratio for NET has been reduced compared to a year ago.
NET Yearly Shares OutstandingNET Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B

2.2 Solvency

  • NET has an Altman-Z score of 8.15. This indicates that NET is financially healthy and has little risk of bankruptcy at the moment.
  • NET has a Altman-Z score of 8.15. This is amongst the best in the industry. NET outperforms 92.05% of its industry peers.
  • The Debt to FCF ratio of NET is 15.69, which is on the high side as it means it would take NET, 15.69 years of fcf income to pay off all of its debts.
  • NET has a Debt to FCF ratio of 15.69. This is comparable to the rest of the industry: NET outperforms 40.91% of its industry peers.
  • NET has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.46, NET is doing worse than 69.32% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF 15.69
Altman-Z 8.15
ROIC/WACCN/A
WACC9.04%
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 0 500M 1B

2.3 Liquidity

  • NET has a Current Ratio of 2.04. This indicates that NET is financially healthy and has no problem in meeting its short term obligations.
  • NET's Current ratio of 2.04 is fine compared to the rest of the industry. NET outperforms 60.23% of its industry peers.
  • A Quick Ratio of 2.04 indicates that NET has no problem at all paying its short term obligations.
  • NET has a better Quick ratio (2.04) than 60.23% of its industry peers.
Industry RankSector Rank
Current Ratio 2.04
Quick Ratio 2.04
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 500M 1B 1.5B 2B

More info and screens

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

8

3. Growth

3.1 Past

  • NET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.90%, which is quite good.
  • The Revenue has grown by 28.06% in the past year. This is a very strong growth!
  • The Revenue has been growing by 42.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35%
Revenue 1Y (TTM)28.06%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%30.68%

3.2 Future

  • NET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.78% yearly.
  • NET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.77% yearly.
EPS Next Y23.38%
EPS Next 2Y27.37%
EPS Next 3Y29.42%
EPS Next 5Y28.78%
Revenue Next Year29.08%
Revenue Next 2Y28.32%
Revenue Next 3Y28.18%
Revenue Next 5Y26.77%

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.
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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1

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 208.69 indicates a quite expensive valuation of NET.
  • NET's Price/Earnings ratio is in line with the industry average.
  • NET is valuated expensively when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
  • NET is valuated quite expensively with a Price/Forward Earnings ratio of 142.35.
  • The rest of the industry has a similar Price/Forward Earnings ratio as NET.
  • NET's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.78.
Industry RankSector Rank
PE 208.69
Fwd PE 142.35
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 ratio is a bit more expensive when compared to the industry. NET is more expensive than 61.36% of the companies in the same industry.
Industry RankSector Rank
P/FCF 291.75
EV/EBITDA N/A
NET Per share dataNET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NET does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as NET's earnings are expected to grow with 29.42% in the coming years.
PEG (NY)8.92
PEG (5Y)N/A
EPS Next 2Y27.37%
EPS Next 3Y29.42%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

CLOUDFLARE INC - CLASS A

NYSE:NET (2/6/2026, 8:04:00 PM)

After market: 175 +1.79 (+1.03%)

173.21

+10.16 (+6.23%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-30
Earnings (Next)02-10
Inst Owners90.22%
Inst Owner Change-2.08%
Ins Owners0.65%
Ins Owner Change-1.81%
Market Cap60.67B
Revenue(TTM)2.01B
Net Income(TTM)-103.19M
Analysts73
Price Target243.86 (40.79%)
Short Float %3.2%
Short Ratio3.32
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)13.77%
Min EPS beat(2)13.32%
Max EPS beat(2)14.22%
EPS beat(4)3
Avg EPS beat(4)6.83%
Min EPS beat(4)-4.26%
Max EPS beat(4)14.22%
EPS beat(8)7
Avg EPS beat(8)15.01%
EPS beat(12)11
Avg EPS beat(12)31.4%
EPS beat(16)15
Avg EPS beat(16)302.47%
Revenue beat(2)2
Avg Revenue beat(2)1.66%
Min Revenue beat(2)1.18%
Max Revenue beat(2)2.14%
Revenue beat(4)4
Avg Revenue beat(4)1.28%
Min Revenue beat(4)0.73%
Max Revenue beat(4)2.14%
Revenue beat(8)8
Avg Revenue beat(8)1.03%
Revenue beat(12)9
Avg Revenue beat(12)0.56%
Revenue beat(16)13
Avg Revenue beat(16)0.94%
PT rev (1m)0.15%
PT rev (3m)12.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.71%
EPS NY rev (1m)0%
EPS NY rev (3m)6.66%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
Industry RankSector Rank
PE 208.69
Fwd PE 142.35
P/S 30.13
P/FCF 291.75
P/OCF 112.44
P/B 45.04
P/tB 52.87
EV/EBITDA N/A
EPS(TTM)0.83
EY0.48%
EPS(NY)1.22
Fwd EY0.7%
FCF(TTM)0.59
FCFY0.34%
OCF(TTM)1.54
OCFY0.89%
SpS5.75
BVpS3.85
TBVpS3.28
PEG (NY)8.92
PEG (5Y)N/A
Graham Number8.47
Profitability
Industry RankSector Rank
ROA -1.78%
ROE -7.66%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 75.2%
FCFM 10.33%
ROA(3y)-5.51%
ROA(5y)-7.23%
ROE(3y)-20.88%
ROE(5y)-21.83%
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-0.12%
GM growth 5Y-0.15%
F-Score4
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 1.46
Debt/FCF 15.69
Debt/EBITDA N/A
Cap/Depr 190.94%
Cap/Sales 16.47%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.04
Quick Ratio 2.04
Altman-Z 8.15
F-Score4
WACC9.04%
ROIC/WACCN/A
Cap/Depr(3y)142.08%
Cap/Depr(5y)147.96%
Cap/Sales(3y)13.32%
Cap/Sales(5y)14.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%35%
EPS Next Y23.38%
EPS Next 2Y27.37%
EPS Next 3Y29.42%
EPS Next 5Y28.78%
Revenue 1Y (TTM)28.06%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%30.68%
Revenue Next Year29.08%
Revenue Next 2Y28.32%
Revenue Next 3Y28.18%
Revenue Next 5Y26.77%
EBIT growth 1Y-16.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year116.55%
EBIT Next 3Y58.16%
EBIT Next 5Y47.39%
FCF growth 1Y103.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y118.38%
OCF growth 3Y80.58%
OCF growth 5YN/A

CLOUDFLARE INC - CLASS A / NET 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 1 / 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 23.38% in the next year.