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

NYSE:NET • US18915M1071

210.48 USD
-2.52 (-1.18%)
Last: Mar 12, 2026, 11:22 AM
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This NET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

NET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the IT Services industry. Both the profitability and financial health of NET have multiple concerns. NET is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

3

1. NET Profitability Analysis

1.1 Basic Checks

  • In the past year NET was profitable.
  • In the past year NET had a positive cash flow from operations.
  • NET had negative earnings in each of the past 5 years.
  • Each year in the past 5 years NET had a positive operating cash flow.
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 45.98% 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 93.10% of the companies in the same industry.
  • NET's Gross Margin has been stable in the last couple of years.
  • The Profit Margin and Operating Margin are not available for NET so they could not be analyzed.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

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
  • The debt/assets ratio for NET is higher compared to a year ago.
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

  • An Altman-Z score of 10.25 indicates that NET is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 10.25, NET belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
  • 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.
  • The Debt to FCF ratio of NET (12.53) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.35 is on the high side and indicates that NET has dependencies on debt financing.
  • NET has a worse Debt to Equity ratio (1.35) than 68.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 12.53
Altman-Z 10.25
ROIC/WACCN/A
WACC8.64%
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.
  • NET's Current ratio of 1.98 is in line compared to the rest of the industry. NET outperforms 57.47% of its industry peers.
  • A Quick Ratio of 1.98 indicates that NET should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.98, NET perfoms like the industry average, outperforming 57.47% of the companies in the same 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.
  • The Revenue has grown by 29.85% in the past year. This is a very strong growth!
  • Measured over the past years, NET shows a very strong growth in Revenue. The Revenue has been growing by 38.13% on average per year.
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.
  • The Revenue is expected to grow by 26.82% on average over the next years. This is a very strong growth
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.
  • 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.
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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Find the best growth stocksShow best growing peers

1

4. NET Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 228.78, which means the current valuation is very expensive for NET.
  • The rest of the industry has a similar Price/Earnings ratio as NET.
  • NET is valuated expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 183.11, the valuation of NET can be described as expensive.
  • NET's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of NET to the average of the S&P500 Index (24.27), we can say NET is valued expensively.
Industry RankSector Rank
PE 228.78
Fwd PE 183.11
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

  • Based on the Price/Free Cash Flow ratio, NET is valued a bit more expensive than the industry average as 60.92% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 284.33
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)9.17
PEG (5Y)N/A
EPS Next 2Y27.41%
EPS Next 3Y33.23%

More info and screens

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%

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Find the best dividend stocksShow peers with best dividend

NET Fundamentals: All Metrics, Ratios and Statistics

CLOUDFLARE INC - CLASS A

NYSE:NET (3/12/2026, 11:22:55 AM)

210.48

-2.52 (-1.18%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-10
Earnings (Next)05-06
Inst Owners89.62%
Inst Owner Change-0.03%
Ins Owners0.68%
Ins Owner Change-0.04%
Market Cap74.08B
Revenue(TTM)2.17B
Net Income(TTM)-102.27M
Analysts76.5
Price Target238.3 (13.22%)
Short Float %2.77%
Short Ratio1.92
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)0.61%
PT rev (3m)-2.33%
EPS NQ rev (1m)-8.3%
EPS NQ rev (3m)-8.3%
EPS NY rev (1m)-5.53%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)1.36%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)2.39%
Revenue NY rev (3m)2.39%
Valuation
Industry RankSector Rank
PE 228.78
Fwd PE 183.11
P/S 34.17
P/FCF 284.33
P/OCF 122.84
P/B 50.77
P/tB 62.22
EV/EBITDA N/A
EPS(TTM)0.92
EY0.44%
EPS(NY)1.15
Fwd EY0.55%
FCF(TTM)0.74
FCFY0.35%
OCF(TTM)1.71
OCFY0.81%
SpS6.16
BVpS4.15
TBVpS3.38
PEG (NY)9.17
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 10.25
F-Score4
WACC8.64%
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 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 24.94% in the next year.