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ROKU INC (ROKU) Stock Fundamental Analysis

USA - NASDAQ:ROKU - US77543R1023 - Common Stock

94.4 USD
+0.57 (+0.61%)
Last: 10/14/2025, 8:15:28 PM
94.46 USD
+0.06 (+0.06%)
After Hours: 10/14/2025, 8:15:28 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ROKU. ROKU was compared to 79 industry peers in the Entertainment industry. While ROKU has a great health rating, there are worries on its profitability. ROKU is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

ROKU had negative earnings in the past year.
In the past year ROKU had a positive cash flow from operations.
ROKU had negative earnings in 4 of the past 5 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M

1.2 Ratios

Looking at the Return On Assets, with a value of -1.44%, ROKU is in line with its industry, outperforming 51.90% of the companies in the same industry.
ROKU has a Return On Equity of -2.37%. This is comparable to the rest of the industry: ROKU outperforms 56.96% of its industry peers.
Industry RankSector Rank
ROA -1.44%
ROE -2.37%
ROIC N/A
ROA(3y)-10.31%
ROA(5y)-5.15%
ROE(3y)-18.17%
ROE(5y)-9.41%
ROIC(3y)N/A
ROIC(5y)N/A
ROKU Yearly ROA, ROE, ROICROKU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200

1.3 Margins

With a Gross Margin value of 44.04%, ROKU perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
ROKU's Gross Margin has been stable in the last couple of years.
ROKU does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 44.04%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.84%
GM growth 5Y0.02%
ROKU Yearly Profit, Operating, Gross MarginsROKU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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8

2. Health

2.1 Basic Checks

ROKU does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ROKU has more shares outstanding
The number of shares outstanding for ROKU has been increased compared to 5 years ago.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ROKU Yearly Shares OutstandingROKU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
ROKU Yearly Total Debt VS Total AssetsROKU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 5.96 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU's Altman-Z score of 5.96 is amongst the best of the industry. ROKU outperforms 82.28% of its industry peers.
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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.96
ROIC/WACCN/A
WACC8.69%
ROKU Yearly LT Debt VS Equity VS FCFROKU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 2.85 indicates that ROKU has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.85, ROKU belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
ROKU has a Quick Ratio of 2.75. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.75, ROKU is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.85
Quick Ratio 2.75
ROKU Yearly Current Assets VS Current LiabilitesROKU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 87.90% over the past year.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.32%.
ROKU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.51% yearly.
EPS 1Y (TTM)87.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.17%
Revenue 1Y (TTM)17.32%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%14.76%

3.2 Future

The Earnings Per Share is expected to grow by 40.40% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.38% on average over the next years. This is quite good.
EPS Next Y122.03%
EPS Next 2Y73.44%
EPS Next 3Y61.73%
EPS Next 5Y40.4%
Revenue Next Year15.33%
Revenue Next 2Y13.64%
Revenue Next 3Y12.81%
Revenue Next 5Y11.38%

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.
ROKU Yearly Revenue VS EstimatesROKU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B
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 0 2 -2 4 -4

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ROKU. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 105.22, the valuation of ROKU can be described as expensive.
ROKU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ROKU to the average of the S&P500 Index (22.99), we can say ROKU is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 105.22
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 -100 -200

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROKU indicates a somewhat cheap valuation: ROKU is cheaper than 68.35% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 35.67
EV/EBITDA N/A
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 61.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y73.44%
EPS Next 3Y61.73%

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0

5. Dividend

5.1 Amount

ROKU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ROKU INC

NASDAQ:ROKU (10/14/2025, 8:15:28 PM)

After market: 94.46 +0.06 (+0.06%)

94.4

+0.57 (+0.61%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-29 2025-10-29/amc
Inst Owners88.69%
Inst Owner Change0.03%
Ins Owners0.67%
Ins Owner Change-4.92%
Market Cap13.91B
Analysts76.41
Price Target104.89 (11.11%)
Short Float %7.05%
Short Ratio2.42
Dividend
Industry RankSector 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)87.93%
Min EPS beat(2)31.35%
Max EPS beat(2)144.5%
EPS beat(4)4
Avg EPS beat(4)74.8%
Min EPS beat(4)31.35%
Max EPS beat(4)144.5%
EPS beat(8)6
Avg EPS beat(8)47.18%
EPS beat(12)10
Avg EPS beat(12)37.97%
EPS beat(16)12
Avg EPS beat(16)75.94%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)2.57%
Revenue beat(8)6
Avg Revenue beat(8)1.65%
Revenue beat(12)10
Avg Revenue beat(12)3.05%
Revenue beat(16)11
Avg Revenue beat(16)1.39%
PT rev (1m)2.75%
PT rev (3m)16.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.14%
EPS NY rev (1m)55.25%
EPS NY rev (3m)225.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.36%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.3%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 105.22
P/S 3.16
P/FCF 35.67
P/OCF 35.08
P/B 5.37
P/tB 6.27
EV/EBITDA N/A
EPS(TTM)-0.42
EYN/A
EPS(NY)0.9
Fwd EY0.95%
FCF(TTM)2.65
FCFY2.8%
OCF(TTM)2.69
OCFY2.85%
SpS29.83
BVpS17.58
TBVpS15.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.44%
ROE -2.37%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 44.04%
FCFM 8.87%
ROA(3y)-10.31%
ROA(5y)-5.15%
ROE(3y)-18.17%
ROE(5y)-9.41%
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-4.84%
GM growth 5Y0.02%
F-Score6
Asset Turnover1.03
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 4.91%
Cap/Sales 0.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.85
Quick Ratio 2.75
Altman-Z 5.96
F-Score6
WACC8.69%
ROIC/WACCN/A
Cap/Depr(3y)133.72%
Cap/Depr(5y)144.54%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)87.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.17%
EPS Next Y122.03%
EPS Next 2Y73.44%
EPS Next 3Y61.73%
EPS Next 5Y40.4%
Revenue 1Y (TTM)17.32%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%14.76%
Revenue Next Year15.33%
Revenue Next 2Y13.64%
Revenue Next 3Y12.81%
Revenue Next 5Y11.38%
EBIT growth 1Y48.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year245.55%
EBIT Next 3Y68.89%
EBIT Next 5Y43.89%
FCF growth 1Y334.15%
FCF growth 3Y4.23%
FCF growth 5YN/A
OCF growth 1Y2490.99%
OCF growth 3Y-1.49%
OCF growth 5Y73.93%