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

NYSE:NET • US18915M1071

Current stock price

206.806 USD
-0.86 (-0.42%)
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.
  • In the past 5 years NET always reported negative net income.
  • 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 (-1.69%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of -7.01%, NET is in line with its industry, outperforming 45.45% of the companies in the same 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

  • With an excellent Gross Margin value of 74.51%, NET belongs to the best 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.
  • Compared to 1 year ago, NET has more shares outstanding
  • NET has more shares outstanding than it did 5 years ago.
  • 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 10.01. This indicates that NET is financially healthy and has little risk of bankruptcy at the moment.
  • NET has a better Altman-Z score (10.01) than 94.32% of its industry peers.
  • NET has a debt to FCF ratio of 12.53. This is a negative value and a sign of low solvency as NET would need 12.53 years to pay back of all of its debts.
  • NET has a Debt to FCF ratio of 12.53. This is comparable to the rest of the industry: NET outperforms 44.32% of its industry peers.
  • 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 10.01
ROIC/WACCN/A
WACC10.32%
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

  • NET has a Current 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 Current ratio of NET (1.98) is comparable to the rest of the industry.
  • A Quick Ratio of 1.98 indicates that NET should not have too much problems paying its short term obligations.
  • NET has a Quick ratio (1.98) which is in line with its industry peers.
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.
  • Looking at the last year, NET shows a very strong growth in Revenue. 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

  • NET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.81% yearly.
  • Based on estimates for the next years, NET will show a very strong growth in Revenue. The Revenue will grow by 26.82% on average per year.
EPS Next Y24.88%
EPS Next 2Y27.43%
EPS Next 3Y33.11%
EPS Next 5Y44.81%
Revenue Next Year30.61%
Revenue Next 2Y29.05%
Revenue Next 3Y28.49%
Revenue Next 5Y26.82%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • With a Price/Earnings ratio of 224.79, NET can be considered very expensive at the moment.
  • NET's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of NET to the average of the S&P500 Index (27.66), we can say NET is valued expensively.
  • NET is valuated quite expensively with a Price/Forward Earnings ratio of 180.01.
  • The rest of the industry has a similar Price/Forward Earnings ratio as NET.
  • NET is valuated expensively when we compare the Price/Forward Earnings ratio to 38.00, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 224.79
Fwd PE 180.01
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

  • The rest of the industry has a similar Price/Free Cash Flow ratio as NET.
Industry RankSector Rank
P/FCF 279.36
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 NET does not grow enough to justify the current Price/Earnings ratio.
  • NET's earnings are expected to grow with 33.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.04
PEG (5Y)N/A
EPS Next 2Y27.43%
EPS Next 3Y33.11%

More info and screens

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

0

5. NET Dividend Analysis

5.1 Amount

  • NET does not give a dividend.
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 (4/22/2026, 1:02:45 PM)

206.806

-0.86 (-0.42%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-10
Earnings (Next)05-07
Inst Owners89.43%
Inst Owner Change-0.03%
Ins Owners0.69%
Ins Owner Change-0.01%
Market Cap72.79B
Revenue(TTM)2.17B
Net Income(TTM)-102.27M
Analysts77
Price Target239.36 (15.74%)
Short Float %2.55%
Short Ratio1.6
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)0.44%
PT rev (3m)-1.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.3%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-5.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.39%
Valuation
Industry RankSector Rank
PE 224.79
Fwd PE 180.01
P/S 33.58
P/FCF 279.36
P/OCF 120.69
P/B 49.89
P/tB 61.13
EV/EBITDA N/A
EPS(TTM)0.92
EY0.44%
EPS(NY)1.15
Fwd EY0.56%
FCF(TTM)0.74
FCFY0.36%
OCF(TTM)1.71
OCFY0.83%
SpS6.16
BVpS4.15
TBVpS3.38
PEG (NY)9.04
PEG (5Y)N/A
Graham Number9.26344 (-95.52%)
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 10.01
F-Score4
WACC10.32%
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 Y24.88%
EPS Next 2Y27.43%
EPS Next 3Y33.11%
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 2Y29.05%
Revenue Next 3Y28.49%
Revenue Next 5Y26.82%
EBIT growth 1Y-30.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year114.25%
EBIT Next 3Y58.09%
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.


Can you provide the profitability details for CLOUDFLARE INC - CLASS A?

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


Can you provide the PE and PB ratios for NET stock?

The Price/Earnings (PE) ratio for CLOUDFLARE INC - CLASS A (NET) is 224.79 and the Price/Book (PB) ratio is 49.89.


What is the financial health of CLOUDFLARE INC - CLASS A (NET) stock?

The financial health rating of CLOUDFLARE INC - CLASS A (NET) is 3 / 10.