CLOUDFLARE INC - CLASS A (NET) Stock Fundamental Analysis
NYSE:NET - New York Stock Exchange, Inc. - US18915M1071 - Common Stock - Currency: USD
Taking everything into account, NET scores 4 out of 10 in our fundamental rating. NET was compared to 82 industry peers in the IT Services industry. The financial health of NET is average, but there are quite some concerns on its profitability. NET is valued quite expensively, but it does show have an excellent growth rating.
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.
NET had negative earnings in each of the past 5 years.
NET had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NET's Return On Assets of -2.10% is on the low side compared to the rest of the industry. NET is outperformed by 60.98% of its industry peers.
Looking at the Return On Equity, with a value of -9.44%, NET is doing worse than 60.98% of the companies in the same industry.
| 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 has a Gross Margin of 76.14%. This is amongst the best in the industry. NET outperforms 92.68% 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.
Compared to 1 year ago, NET has more shares outstanding
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 11.07. This indicates that NET is financially healthy and has little risk of bankruptcy at the moment.
NET has a better Altman-Z score (11.07) than 97.56% of its industry peers.
NET has a debt to FCF ratio of 18.20. This is a negative value and a sign of low solvency as NET would need 18.20 years to pay back of all of its debts.
NET has a Debt to FCF ratio (18.20) which is in line with its industry peers.
NET has a Debt/Equity ratio of 2.63. This is a high value indicating a heavy dependency on external financing.
NET has a worse Debt to Equity ratio (2.63) than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.63 | ||
| Debt/FCF | 18.2 | ||
| Altman-Z | 11.07 |
ROIC/WACCN/A
WACC9.69%
2.3 Liquidity
A Current Ratio of 5.14 indicates that NET has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.14, NET belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
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 91.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.14 | ||
| Quick Ratio | 5.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.43% over the past year.
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
NET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.82% yearly.
The Revenue is expected to grow by 24.71% on average over the next years. This is a very strong growth
EPS Next Y7.36%
EPS Next 2Y19.16%
EPS Next 3Y25.99%
EPS Next 5Y24.82%
Revenue Next Year26.16%
Revenue Next 2Y26.31%
Revenue Next 3Y26.52%
Revenue Next 5Y24.71%
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
The Price/Earnings ratio is 276.89, which means the current valuation is very expensive for NET.
Compared to the rest of the industry, the Price/Earnings ratio of NET indicates a slightly more expensive valuation: NET is more expensive than 60.98% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NET to the average of the S&P500 Index (26.54), we can say NET is valued expensively.
A Price/Forward Earnings ratio of 197.59 indicates a quite expensive valuation of NET.
NET's Price/Forward Earnings is on the same level as the industry average.
NET is valuated expensively when we compare the Price/Forward Earnings ratio to 35.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 276.89 | ||
| Fwd PE | 197.59 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NET is valued a bit more expensive than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 407.08 | ||
| 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.
NET's earnings are expected to grow with 25.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)37.63
PEG (5Y)N/A
EPS Next 2Y19.16%
EPS Next 3Y25.99%
5. Dividend
5.1 Amount
No dividends for NET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
210.44
-5.09 (-2.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners86.88%
Inst Owner Change0.07%
Ins Owners0.69%
Ins Owner Change4.88%
Market Cap72.94B
Analysts72.31
Price Target212.17 (0.82%)
Short Float %2.95%
Short Ratio2.78
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)6.91%
PT rev (3m)18.39%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 276.89 | ||
| Fwd PE | 197.59 | ||
| P/S | 38.77 | ||
| P/FCF | 407.08 | ||
| P/OCF | 152.72 | ||
| P/B | 58.84 | ||
| P/tB | 70.37 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.76
EY0.36%
EPS(NY)1.07
Fwd EY0.51%
FCF(TTM)0.52
FCFY0.25%
OCF(TTM)1.38
OCFY0.65%
SpS5.43
BVpS3.58
TBVpS2.99
PEG (NY)37.63
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 | 11.07 |
F-Score4
WACC9.69%
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 Y7.36%
EPS Next 2Y19.16%
EPS Next 3Y25.99%
EPS Next 5Y24.82%
Revenue 1Y (TTM)27.32%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%27.76%
Revenue Next Year26.16%
Revenue Next 2Y26.31%
Revenue Next 3Y26.52%
Revenue Next 5Y24.71%
EBIT growth 1Y-6.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year108.42%
EBIT Next 3Y55.95%
EBIT Next 5Y44.87%
FCF growth 1Y184.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y115.46%
OCF growth 3Y80.58%
OCF growth 5YN/A