CLOUDFLARE INC - CLASS A (NET) Stock Fundamental Analysis
NYSE:NET - US18915M1071 - Common Stock
213.42 USD
+8.18 (+3.99%)
213.3 USD
-0.12 (-0.06%)
Overall NET gets a fundamental rating of 4 out of 10. We evaluated NET against 83 industry peers in the IT Services industry. NET scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NET is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
NET had positive earnings in the past year.
In the past year NET had a positive cash flow from operations.
In the past 5 years NET always reported negative net income.
Of the past 5 years NET 4 years had a positive operating cash flow.
1.2 Ratios
NET has a Return On Assets of -2.10%. This is in the lower half of the industry: NET underperforms 61.45% of its industry peers.
NET has a worse Return On Equity (-9.44%) than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.1% | ||
| ROE | -9.44% | ||
| 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
1.3 Margins
NET's Gross Margin of 76.14% is amongst the best of the industry. NET outperforms 92.77% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.14% |
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%
2. Health
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
NET has a better debt/assets ratio than last year.
2.2 Solvency
NET has an Altman-Z score of 10.62. This indicates that NET is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.62, NET belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
The Debt to FCF ratio of NET is 18.20, which is on the high side as it means it would take NET, 18.20 years of fcf income to pay off all of its debts.
NET has a Debt to FCF ratio of 18.20. This is comparable to the rest of the industry: NET outperforms 43.37% of its industry peers.
A Debt/Equity ratio of 2.63 is on the high side and indicates that NET has dependencies on debt financing.
The Debt to Equity ratio of NET (2.63) is worse than 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 18.2 | ||
| Altman-Z | 10.62 |
ROIC/WACCN/A
WACC9.31%
2.3 Liquidity
NET has a Current Ratio of 5.14. This indicates that NET is financially healthy and has no problem in meeting its short term obligations.
NET has a better Current ratio (5.14) than 89.16% of its industry peers.
A Quick Ratio of 5.14 indicates that NET has no problem at all paying its short term obligations.
NET has a better Quick ratio (5.14) than 89.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.14 | ||
| Quick Ratio | 5.14 |
3. Growth
3.1 Past
NET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.43%, which is quite good.
The Revenue has grown by 27.32% 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)13.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5%
Revenue 1Y (TTM)27.32%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%27.76%
3.2 Future
The Earnings Per Share is expected to grow by 27.17% on average over the next years. This is a very strong growth
NET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.41% yearly.
EPS Next Y15.68%
EPS Next 2Y23.65%
EPS Next 3Y27.53%
EPS Next 5Y27.17%
Revenue Next Year27.41%
Revenue Next 2Y26.92%
Revenue Next 3Y27.03%
Revenue Next 5Y25.41%
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
A Price/Earnings ratio of 280.82 indicates a quite expensive valuation of NET.
The rest of the industry has a similar Price/Earnings ratio as NET.
When comparing the Price/Earnings ratio of NET to the average of the S&P500 Index (27.17), we can say NET is valued expensively.
The Price/Forward Earnings ratio is 186.11, which means the current valuation is very expensive for NET.
NET's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NET is more expensive than 60.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NET to the average of the S&P500 Index (22.78), we can say NET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 280.82 | ||
| Fwd PE | 186.11 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NET is valued a bit more expensive than the industry average as 60.24% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 415.07 | ||
| EV/EBITDA | N/A |
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 27.53% in the coming years.
PEG (NY)17.91
PEG (5Y)N/A
EPS Next 2Y23.65%
EPS Next 3Y27.53%
5. Dividend
5.1 Amount
NET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
213.42
+8.18 (+3.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners87.25%
Inst Owner Change5.78%
Ins Owners0.69%
Ins Owner Change-2.14%
Market Cap74.37B
Analysts72.31
Price Target215.2 (0.83%)
Short Float %3.12%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)4.53%
Min EPS beat(2)-4.26%
Max EPS beat(2)13.32%
EPS beat(4)3
Avg EPS beat(4)5.45%
Min EPS beat(4)-4.26%
Max EPS beat(4)13.32%
EPS beat(8)7
Avg EPS beat(8)20.82%
EPS beat(12)11
Avg EPS beat(12)325.6%
EPS beat(16)15
Avg EPS beat(16)307.83%
Revenue beat(2)2
Avg Revenue beat(2)1.13%
Min Revenue beat(2)1.08%
Max Revenue beat(2)1.18%
Revenue beat(4)4
Avg Revenue beat(4)0.85%
Min Revenue beat(4)0.4%
Max Revenue beat(4)1.18%
Revenue beat(8)8
Avg Revenue beat(8)0.83%
Revenue beat(12)9
Avg Revenue beat(12)0.41%
Revenue beat(16)13
Avg Revenue beat(16)0.99%
PT rev (1m)25.09%
PT rev (3m)48.08%
EPS NQ rev (1m)9.42%
EPS NQ rev (3m)9.02%
EPS NY rev (1m)7.75%
EPS NY rev (3m)7.99%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 280.82 | ||
| Fwd PE | 186.11 | ||
| P/S | 39.53 | ||
| P/FCF | 415.07 | ||
| P/OCF | 155.72 | ||
| P/B | 59.99 | ||
| P/tB | 71.75 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.76
EY0.36%
EPS(NY)1.15
Fwd EY0.54%
FCF(TTM)0.51
FCFY0.24%
OCF(TTM)1.37
OCFY0.64%
SpS5.4
BVpS3.56
TBVpS2.97
PEG (NY)17.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.1% | ||
| ROE | -9.44% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.14% | ||
| FCFM | 9.52% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 18.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 191.74% | ||
| Cap/Sales | 15.86% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.14 | ||
| Quick Ratio | 5.14 | ||
| Altman-Z | 10.62 |
F-Score4
WACC9.31%
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)13.43%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5%
EPS Next Y15.68%
EPS Next 2Y23.65%
EPS Next 3Y27.53%
EPS Next 5Y27.17%
Revenue 1Y (TTM)27.32%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%27.76%
Revenue Next Year27.41%
Revenue Next 2Y26.92%
Revenue Next 3Y27.03%
Revenue Next 5Y25.41%
EBIT growth 1Y-6.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year108.42%
EBIT Next 3Y55.95%
EBIT Next 5Y45.9%
FCF growth 1Y184.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.46%
OCF growth 3Y80.58%
OCF growth 5YN/A