CLOUDFLARE INC - CLASS A (NET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NET - US18915M1071 - Common Stock
193.83 USD
+2.4 (+1.25%)
193.83 USD
0 (0%)
NET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
NET had positive earnings in the past year.
NET had a positive operating cash flow in the past year.
In the past 5 years NET always reported negative net income.
NET had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NET has a Return On Assets of -1.78%. This is comparable to the rest of the industry: NET outperforms 42.35% of its industry peers.
NET has a Return On Equity (-7.66%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.78% | ||
| ROE | -7.66% | ||
| 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
With an excellent Gross Margin value of 75.20%, NET belongs to the best of the industry, outperforming 94.12% 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 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.
Compared to 1 year ago, NET has more shares outstanding
NET has more shares outstanding than it did 5 years ago.
NET has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.49 indicates that NET is not in any danger for bankruptcy at the moment.
NET's Altman-Z score of 9.49 is amongst the best of the industry. NET outperforms 91.76% of its industry peers.
The Debt to FCF ratio of NET is 15.69, which is on the high side as it means it would take NET, 15.69 years of fcf income to pay off all of its debts.
NET has a Debt to FCF ratio of 15.69. This is in the lower half of the industry: NET underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.46 is on the high side and indicates that NET has dependencies on debt financing.
NET has a worse Debt to Equity ratio (1.46) than 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 15.69 | ||
| Altman-Z | 9.49 |
ROIC/WACCN/A
WACC8.64%
2.3 Liquidity
A Current Ratio of 2.04 indicates that NET has no problem at all paying its short term obligations.
NET has a Current ratio of 2.04. This is comparable to the rest of the industry: NET outperforms 58.82% of its industry peers.
A Quick Ratio of 2.04 indicates that NET has no problem at all paying its short term obligations.
NET has a Quick ratio (2.04) which is in line with 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.
NET shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.06%.
The Revenue has been growing by 42.22% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 28.78% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 26.77% on average over the next years. This is a very strong growth
EPS Next Y23.37%
EPS Next 2Y27.41%
EPS Next 3Y29.45%
EPS Next 5Y28.78%
Revenue Next Year29.08%
Revenue Next 2Y28.32%
Revenue Next 3Y28.12%
Revenue Next 5Y26.77%
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
NET is valuated quite expensively with a Price/Earnings ratio of 233.53.
NET's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.22, NET is valued quite expensively.
NET is valuated quite expensively with a Price/Forward Earnings ratio of 159.21.
The rest of the industry has a similar Price/Forward Earnings ratio as NET.
When comparing the Price/Forward Earnings ratio of NET to the average of the S&P500 Index (23.58), we can say NET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 233.53 | ||
| Fwd PE | 159.21 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NET is valued a bit more expensive than the industry average as 62.35% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 326.48 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as NET's earnings are expected to grow with 29.45% in the coming years.
PEG (NY)9.99
PEG (5Y)N/A
EPS Next 2Y27.41%
EPS Next 3Y29.45%
5. Dividend
5.1 Amount
No dividends for NET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
193.83
+2.4 (+1.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change-0.22%
Ins Owners0.65%
Ins Owner Change-1.82%
Market Cap67.89B
Revenue(TTM)2.01B
Net Income(TTM)-103.19M
Analysts73.33
Price Target243.99 (25.88%)
Short Float %2.92%
Short Ratio3.31
Dividend
| Industry Rank | Sector 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)13.77%
Min EPS beat(2)13.32%
Max EPS beat(2)14.22%
EPS beat(4)3
Avg EPS beat(4)6.83%
Min EPS beat(4)-4.26%
Max EPS beat(4)14.22%
EPS beat(8)7
Avg EPS beat(8)15.01%
EPS beat(12)11
Avg EPS beat(12)31.4%
EPS beat(16)15
Avg EPS beat(16)302.47%
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)12.92%
PT rev (3m)13.38%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)6.71%
EPS NY rev (1m)2.47%
EPS NY rev (3m)6.65%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 233.53 | ||
| Fwd PE | 159.21 | ||
| P/S | 33.72 | ||
| P/FCF | 326.48 | ||
| P/OCF | 125.83 | ||
| P/B | 50.4 | ||
| P/tB | 59.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.83
EY0.43%
EPS(NY)1.22
Fwd EY0.63%
FCF(TTM)0.59
FCFY0.31%
OCF(TTM)1.54
OCFY0.79%
SpS5.75
BVpS3.85
TBVpS3.28
PEG (NY)9.99
PEG (5Y)N/A
Graham Number8.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.78% | ||
| ROE | -7.66% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 75.2% | ||
| FCFM | 10.33% |
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 | 15.69 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 190.94% | ||
| Cap/Sales | 16.47% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 9.49 |
F-Score4
WACC8.64%
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 Y23.37%
EPS Next 2Y27.41%
EPS Next 3Y29.45%
EPS Next 5Y28.78%
Revenue 1Y (TTM)28.06%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%30.68%
Revenue Next Year29.08%
Revenue Next 2Y28.32%
Revenue Next 3Y28.12%
Revenue Next 5Y26.77%
EBIT growth 1Y-16.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year116.21%
EBIT Next 3Y58.28%
EBIT Next 5Y47.39%
FCF growth 1Y103.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y118.38%
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 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.
Can you provide the financial health for NET stock?
The financial health rating of CLOUDFLARE INC - CLASS A (NET) is 4 / 10.