ROKU INC (ROKU) Stock Fundamental Analysis
NASDAQ:ROKU - Nasdaq - US77543R1023 - Common Stock - Currency: USD
ROKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. ROKU has a great financial health rating, but its profitability evaluates not so good. ROKU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ROKU has reported negative net income.
ROKU had a positive operating cash flow in the past year.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.54%, ROKU is in line with its industry, outperforming 55.56% of the companies in the same industry.
ROKU's Return On Equity of -4.20% is fine compared to the rest of the industry. ROKU outperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.54% | ||
| ROE | -4.2% | ||
| 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
1.3 Margins
Looking at the Gross Margin, with a value of 43.80%, ROKU is in line with its industry, outperforming 51.39% 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.
The Profit Margin and Operating Margin are not available for ROKU so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 43.8% |
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%
2. Health
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.
Compared to 5 years ago, ROKU has more shares outstanding
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.35 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU's Altman-Z score of 5.35 is amongst the best of the industry. ROKU outperforms 84.72% of its industry peers.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.35 |
ROIC/WACCN/A
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.86 indicates that ROKU has no problem at all paying its short term obligations.
ROKU's Current ratio of 2.86 is amongst the best of the industry. ROKU outperforms 84.72% of its industry peers.
A Quick Ratio of 2.74 indicates that ROKU has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.74, ROKU belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 81.70% over the past year.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.30%.
ROKU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.51% yearly.
EPS 1Y (TTM)81.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.71%
Revenue 1Y (TTM)17.3%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%15.79%
3.2 Future
Based on estimates for the next years, ROKU will show a very strong growth in Earnings Per Share. The EPS will grow by 35.56% on average per year.
The Revenue is expected to grow by 11.45% on average over the next years. This is quite good.
EPS Next Y80.86%
EPS Next 2Y63.55%
EPS Next 3Y57.71%
EPS Next 5Y35.57%
Revenue Next Year12.62%
Revenue Next 2Y12.07%
Revenue Next 3Y11.46%
Revenue Next 5Y11.45%
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
ROKU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 136.83, ROKU can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROKU is on the same level as its industry peers.
ROKU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 136.83 |
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 63.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.67 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ROKU's earnings are expected to grow with 57.71% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.55%
EPS Next 3Y57.71%
5. Dividend
5.1 Amount
ROKU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.17
+7.76 (+10.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.88%
Inst Owner Change3.18%
Ins Owners0.68%
Ins Owner Change15.93%
Market Cap12.05B
Analysts75.5
Price Target87.84 (6.9%)
Short Float %7.62%
Short Ratio2.18
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)36.45%
Min EPS beat(2)31.35%
Max EPS beat(2)41.56%
EPS beat(4)4
Avg EPS beat(4)49.89%
Min EPS beat(4)31.35%
Max EPS beat(4)81.79%
EPS beat(8)6
Avg EPS beat(8)34.23%
EPS beat(12)9
Avg EPS beat(12)24.54%
EPS beat(16)12
Avg EPS beat(16)86.11%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)2.57%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)2.57%
Revenue beat(8)6
Avg Revenue beat(8)2.36%
Revenue beat(12)9
Avg Revenue beat(12)2.34%
Revenue beat(16)11
Avg Revenue beat(16)1.44%
PT rev (1m)0.42%
PT rev (3m)-16.16%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-22.8%
EPS NY rev (1m)0%
EPS NY rev (3m)50.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 136.83 | ||
| P/S | 2.83 | ||
| P/FCF | 39.67 | ||
| P/OCF | 38.86 | ||
| P/B | 4.77 | ||
| P/tB | 5.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.73
EYN/A
EPS(NY)0.6
Fwd EY0.73%
FCF(TTM)2.07
FCFY2.52%
OCF(TTM)2.11
OCFY2.57%
SpS28.99
BVpS17.22
TBVpS15.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.54% | ||
| ROE | -4.2% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 43.8% | ||
| FCFM | 7.14% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 10.29% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.74 | ||
| Altman-Z | 5.35 |
F-Score6
WACC9.05%
ROIC/WACCN/A
Cap/Depr(3y)152.46%
Cap/Depr(5y)155.78%
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)81.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.71%
EPS Next Y80.86%
EPS Next 2Y63.55%
EPS Next 3Y57.71%
EPS Next 5Y35.57%
Revenue 1Y (TTM)17.3%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%15.79%
Revenue Next Year12.62%
Revenue Next 2Y12.07%
Revenue Next 3Y11.46%
Revenue Next 5Y11.45%
EBIT growth 1Y47.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year235.14%
EBIT Next 3Y66.77%
EBIT Next 5Y42.46%
FCF growth 1Y168.34%
FCF growth 3Y4.23%
FCF growth 5YN/A
OCF growth 1Y227.4%
OCF growth 3Y-1.49%
OCF growth 5Y73.93%