ROKU INC (ROKU) Fundamental Analysis & Valuation

NASDAQ:ROKU • US77543R1023

Current stock price

118.58 USD
+2.39 (+2.06%)
Last:

This ROKU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ROKU Profitability Analysis

1.1 Basic Checks

  • In the past year ROKU was profitable.
  • ROKU had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: ROKU reported negative net income in multiple years.
  • ROKU had a positive operating cash flow in each of the past 5 years.
ROKU Yearly Net Income VS EBIT VS OCF VS FCFROKU 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 -400M -600M

1.2 Ratios

  • ROKU has a Return On Assets of 1.99%. This is in the better half of the industry: ROKU outperforms 73.42% of its industry peers.
  • With a decent Return On Equity value of 3.32%, ROKU is doing good in the industry, outperforming 73.42% of the companies in the same industry.
Industry RankSector Rank
ROA 1.99%
ROE 3.32%
ROIC N/A
ROA(3y)-5.89%
ROA(5y)-4.6%
ROE(3y)-10.79%
ROE(5y)-8.48%
ROIC(3y)N/A
ROIC(5y)N/A
ROKU Yearly ROA, ROE, ROICROKU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100 -150 -200

1.3 Margins

  • The Profit Margin of ROKU (1.87%) is better than 68.35% of its industry peers.
  • Looking at the Gross Margin, with a value of 43.79%, ROKU is in line with its industry, outperforming 49.37% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ROKU has remained more or less at the same level.
Industry RankSector Rank
OM N/A
PM (TTM) 1.87%
GM 43.79%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y-0.74%
ROKU Yearly Profit, Operating, Gross MarginsROKU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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8

2. ROKU Health Analysis

2.1 Basic Checks

  • ROKU does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for ROKU has been increased compared to 1 year ago.
  • The number of shares outstanding for ROKU has been increased compared to 5 years ago.
  • There is no outstanding debt for ROKU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ROKU Yearly Shares OutstandingROKU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
ROKU Yearly Total Debt VS Total AssetsROKU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 6.97 indicates that ROKU is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 6.97, ROKU belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
  • ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.97
ROIC/WACCN/A
WACC8.93%
ROKU Yearly LT Debt VS Equity VS FCFROKU 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 2B 2.5B

2.3 Liquidity

  • ROKU has a Current Ratio of 2.75. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
  • ROKU has a better Current ratio (2.75) than 82.28% of its industry peers.
  • A Quick Ratio of 2.66 indicates that ROKU has no problem at all paying its short term obligations.
  • ROKU has a better Quick ratio (2.66) than 82.28% of its industry peers.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 2.66
ROKU Yearly Current Assets VS Current LiabilitesROKU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. ROKU Growth Analysis

3.1 Past

  • ROKU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 164.04%, which is quite impressive.
  • Looking at the last year, ROKU shows a quite strong growth in Revenue. The Revenue has grown by 15.18% in the last year.
  • The Revenue has been growing by 21.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)164.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%320.83%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y14.86%
Revenue growth 5Y21.65%
Sales Q2Q%16.14%

3.2 Future

  • ROKU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 55.00% yearly.
  • ROKU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.23% yearly.
EPS Next Y270.1%
EPS Next 2Y138.71%
EPS Next 3Y97.73%
EPS Next 5Y55%
Revenue Next Year17.35%
Revenue Next 2Y14.65%
Revenue Next 3Y13.12%
Revenue Next 5Y12.23%

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.
ROKU Yearly Revenue VS EstimatesROKU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
ROKU Yearly EPS VS EstimatesROKU Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 2 -2 4 -4 6

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4

4. ROKU Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 208.04, the valuation of ROKU can be described as expensive.
  • 60.76% of the companies in the same industry are more expensive than ROKU, based on the Price/Earnings ratio.
  • ROKU is valuated expensively when we compare the Price/Earnings ratio to 27.89, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 56.21 indicates a quite expensive valuation of ROKU.
  • 65.82% of the companies in the same industry are more expensive than ROKU, based on the Price/Forward Earnings ratio.
  • ROKU is valuated rather expensively when we compare the Price/Forward Earnings ratio to 38.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 208.04
Fwd PE 56.21
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200

4.2 Price Multiples

  • ROKU's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROKU indicates a somewhat cheap valuation: ROKU is cheaper than 70.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 36.54
EV/EBITDA 212.26
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as ROKU's earnings are expected to grow with 97.73% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y138.71%
EPS Next 3Y97.73%

More info and screens

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

0

5. ROKU Dividend Analysis

5.1 Amount

  • ROKU does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ROKU Fundamentals: All Metrics, Ratios and Statistics

ROKU INC

NASDAQ:ROKU (4/20/2026, 2:50:53 PM)

118.58

+2.39 (+2.06%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-12
Earnings (Next)04-30
Inst Owners86.54%
Inst Owner Change0.03%
Ins Owners0.63%
Ins Owner Change7.82%
Market Cap17.48B
Revenue(TTM)4.74B
Net Income(TTM)88.36M
Analysts83.68
Price Target128.85 (8.66%)
Short Float %5.61%
Short Ratio2.05
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)85.26%
Min EPS beat(2)83.02%
Max EPS beat(2)87.5%
EPS beat(4)4
Avg EPS beat(4)86.59%
Min EPS beat(4)31.35%
Max EPS beat(4)144.5%
EPS beat(8)8
Avg EPS beat(8)69.83%
EPS beat(12)10
Avg EPS beat(12)49.18%
EPS beat(16)12
Avg EPS beat(16)37.93%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)1.01%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)1.56%
Revenue beat(8)6
Avg Revenue beat(8)1.05%
Revenue beat(12)9
Avg Revenue beat(12)1.87%
Revenue beat(16)12
Avg Revenue beat(16)1.83%
PT rev (1m)0.42%
PT rev (3m)2.84%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)3133.8%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)69.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)3.22%
Valuation
Industry RankSector Rank
PE 208.04
Fwd PE 56.21
P/S 3.69
P/FCF 36.54
P/OCF 36.14
P/B 6.58
P/tB 7.61
EV/EBITDA 212.26
EPS(TTM)0.57
EY0.48%
EPS(NY)2.11
Fwd EY1.78%
FCF(TTM)3.25
FCFY2.74%
OCF(TTM)3.28
OCFY2.77%
SpS32.13
BVpS18.03
TBVpS15.59
PEG (NY)0.77
PEG (5Y)N/A
Graham Number15.2058 (-87.18%)
Profitability
Industry RankSector Rank
ROA 1.99%
ROE 3.32%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 1.87%
GM 43.79%
FCFM 10.1%
ROA(3y)-5.89%
ROA(5y)-4.6%
ROE(3y)-10.79%
ROE(5y)-8.48%
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-1.69%
GM growth 5Y-0.74%
F-Score8
Asset Turnover1.07
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 7.66%
Cap/Sales 0.11%
Interest Coverage N/A
Cash Conversion 729.11%
Profit Quality 541.46%
Current Ratio 2.75
Quick Ratio 2.66
Altman-Z 6.97
F-Score8
WACC8.93%
ROIC/WACCN/A
Cap/Depr(3y)44.34%
Cap/Depr(5y)111.79%
Cap/Sales(3y)0.87%
Cap/Sales(5y)1.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)164.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%320.83%
EPS Next Y270.1%
EPS Next 2Y138.71%
EPS Next 3Y97.73%
EPS Next 5Y55%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y14.86%
Revenue growth 5Y21.65%
Sales Q2Q%16.14%
Revenue Next Year17.35%
Revenue Next 2Y14.65%
Revenue Next 3Y13.12%
Revenue Next 5Y12.23%
EBIT growth 1Y98.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1593.35%
EBIT Next 3Y192.47%
EBIT Next 5Y105.77%
FCF growth 1Y124.64%
FCF growth 3YN/A
FCF growth 5Y48.7%
OCF growth 1Y121.84%
OCF growth 3Y244.8%
OCF growth 5Y26.69%

ROKU INC / ROKU Fundamental Analysis FAQ

What is the fundamental rating for ROKU stock?

ChartMill assigns a fundamental rating of 6 / 10 to ROKU.


Can you provide the valuation status for ROKU INC?

ChartMill assigns a valuation rating of 4 / 10 to ROKU INC (ROKU). This can be considered as Fairly Valued.


Can you provide the profitability details for ROKU INC?

ROKU INC (ROKU) has a profitability rating of 4 / 10.


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

The Price/Earnings (PE) ratio for ROKU INC (ROKU) is 208.04 and the Price/Book (PB) ratio is 6.58.