CLOUDFLARE INC - CLASS A (NET) Stock Fundamental Analysis
USA - NYSE:NET - US18915M1071 - Common Stock
230.44 USD
+4.54 (+2.01%)
Taking everything into account, NET scores 4 out of 10 in our fundamental rating. NET was compared to 85 industry peers in the IT Services industry. While NET seems to be doing ok healthwise, 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
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.
Of the past 5 years NET 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.78%, NET is doing worse than 62.35% of the companies in the same industry.
Looking at the Return On Equity, with a value of -7.65%, NET is doing worse than 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.78% | ||
| ROE | -7.65% | ||
| 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 75.20% is amongst the best of the industry. NET outperforms 92.94% 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 | 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%
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.
NET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NET has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.07 indicates that NET is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.07, NET belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
The Debt to FCF ratio of NET is 15.62, which is on the high side as it means it would take NET, 15.62 years of fcf income to pay off all of its debts.
NET has a Debt to FCF ratio (15.62) which is in line with 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 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 15.62 | ||
| Altman-Z | 11.07 |
ROIC/WACCN/A
WACC8.77%
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.
With a Current ratio value of 2.04, NET perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
NET has a Quick Ratio of 2.04. This indicates that NET is financially healthy and has no problem in meeting its short term obligations.
NET's Quick ratio of 2.04 is fine compared to the rest of the industry. NET outperforms 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
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.
Looking at the last year, NET shows a very strong growth in Revenue. The Revenue has grown by 28.06%.
NET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 42.22% yearly.
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 Y20.4%
EPS Next 2Y26.74%
EPS Next 3Y28.83%
EPS Next 5Y28.78%
Revenue Next Year28.78%
Revenue Next 2Y28.06%
Revenue Next 3Y28.05%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 277.64, NET can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of NET is on the same level as its industry peers.
NET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.67.
The Price/Forward Earnings ratio is 191.28, which means the current valuation is very expensive for NET.
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 (31.86), we can say NET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 277.64 | ||
| Fwd PE | 191.28 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as NET.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 384.46 | ||
| 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 28.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)13.61
PEG (5Y)N/A
EPS Next 2Y26.74%
EPS Next 3Y28.83%
5. Dividend
5.1 Amount
NET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:NET (11/7/2025, 3:32:55 PM)
230.44
+4.54 (+2.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.83%
Inst Owner Change-1.22%
Ins Owners0.66%
Ins Owner Change-2.13%
Market Cap80.30B
Revenue(TTM)2.01B
Net Income(TTM)-103.04M
Analysts72.31
Price Target216.08 (-6.23%)
Short Float %3%
Short Ratio4.31
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)2
Avg EPS beat(2)11.68%
Min EPS beat(2)10.04%
Max EPS beat(2)13.32%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-4.26%
Max EPS beat(4)13.32%
EPS beat(8)7
Avg EPS beat(8)14.49%
EPS beat(12)11
Avg EPS beat(12)31.06%
EPS beat(16)15
Avg EPS beat(16)302.2%
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)0.41%
PT rev (3m)25.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.42%
EPS NY rev (1m)0%
EPS NY rev (3m)7.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 277.64 | ||
| Fwd PE | 191.28 | ||
| P/S | 39.89 | ||
| P/FCF | 384.46 | ||
| P/OCF | 148.71 | ||
| P/B | 59.62 | ||
| P/tB | 69.98 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.83
EY0.36%
EPS(NY)1.2
Fwd EY0.52%
FCF(TTM)0.6
FCFY0.26%
OCF(TTM)1.55
OCFY0.67%
SpS5.78
BVpS3.87
TBVpS3.29
PEG (NY)13.61
PEG (5Y)N/A
Graham Number8.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.78% | ||
| ROE | -7.65% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.2% | ||
| FCFM | 10.37% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 15.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 190.97% | ||
| Cap/Sales | 16.45% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 11.07 |
F-Score4
WACC8.77%
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 Y20.4%
EPS Next 2Y26.74%
EPS Next 3Y28.83%
EPS Next 5Y28.78%
Revenue 1Y (TTM)28.06%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%30.68%
Revenue Next Year28.78%
Revenue Next 2Y28.06%
Revenue Next 3Y28.05%
Revenue Next 5Y26.77%
EBIT growth 1Y-15.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year109.53%
EBIT Next 3Y57.62%
EBIT Next 5Y47.39%
FCF growth 1Y103.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y118.55%
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.
Can you provide the valuation status for CLOUDFLARE INC - CLASS A?
ChartMill assigns a valuation rating of 2 / 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 2 / 10.
Can you provide the financial health for NET stock?
The financial health rating of CLOUDFLARE INC - CLASS A (NET) is 5 / 10.