ROKU INC (ROKU) Stock Fundamental Analysis
USA - NASDAQ:ROKU - US77543R1023 - Common Stock
107.66 USD
+1.99 (+1.88%)
ROKU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 79 industry peers in the Entertainment industry. While ROKU has a great health rating, there are worries on its profitability. 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
ROKU has a Return On Assets of -0.63%. This is comparable to the rest of the industry: ROKU outperforms 55.70% of its industry peers.
With a Return On Equity value of -1.05%, ROKU perfoms like the industry average, outperforming 59.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -1.05% | ||
| 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
ROKU has a Gross Margin of 43.58%. This is comparable to the rest of the industry: ROKU outperforms 50.63% of its industry peers.
ROKU's Gross Margin has been stable in the last couple of years.
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 | 43.58% |
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.
ROKU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROKU has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 6.33 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU's Altman-Z score of 6.33 is amongst the best of the industry. ROKU outperforms 83.54% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.33 |
ROIC/WACCN/A
WACC8.74%
2.3 Liquidity
ROKU has a Current Ratio of 2.74. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.74, ROKU is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
ROKU has a Quick Ratio of 2.62. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ROKU (2.62) is better than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.33% over the past year.
Looking at the last year, ROKU shows a quite strong growth in Revenue. The Revenue has grown by 16.61% in the last year.
Measured over the past years, ROKU shows a very strong growth in Revenue. The Revenue has been growing by 29.51% on average per year.
EPS 1Y (TTM)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%366.67%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%13.97%
3.2 Future
The Earnings Per Share is expected to grow by 38.68% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.12% on average over the next years. This is quite good.
EPS Next Y127.9%
EPS Next 2Y77.97%
EPS Next 3Y63.39%
EPS Next 5Y38.68%
Revenue Next Year15.74%
Revenue Next 2Y14.44%
Revenue Next 3Y13.22%
Revenue Next 5Y12.12%
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
The Price/Earnings Ratio is negative for ROKU. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 103.63, 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/Forward Earnings ratio.
ROKU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 103.63 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.35 | ||
| EV/EBITDA | N/A |
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 63.39% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y77.97%
EPS Next 3Y63.39%
5. Dividend
5.1 Amount
ROKU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ROKU (11/6/2025, 9:42:09 AM)
107.66
+1.99 (+1.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners88.69%
Inst Owner Change-0.66%
Ins Owners0.67%
Ins Owner Change-5.46%
Market Cap15.86B
Revenue(TTM)4.54B
Net Income(TTM)-27664000
Analysts77.44
Price Target106.54 (-1.04%)
Short Float %5.3%
Short Ratio2.29
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)113.76%
Min EPS beat(2)83.02%
Max EPS beat(2)144.5%
EPS beat(4)4
Avg EPS beat(4)75.11%
Min EPS beat(4)31.35%
Max EPS beat(4)144.5%
EPS beat(8)7
Avg EPS beat(8)58.55%
EPS beat(12)10
Avg EPS beat(12)42.19%
EPS beat(16)12
Avg EPS beat(16)38.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)1.56%
Revenue beat(4)2
Avg Revenue beat(4)0.48%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)2.57%
Revenue beat(8)5
Avg Revenue beat(8)0.89%
Revenue beat(12)9
Avg Revenue beat(12)2.29%
Revenue beat(16)11
Avg Revenue beat(16)1.45%
PT rev (1m)2.36%
PT rev (3m)15.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.2%
EPS NY rev (1m)-21.1%
EPS NY rev (3m)198.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 103.63 | ||
| P/S | 3.49 | ||
| P/FCF | 35.35 | ||
| P/OCF | 34.83 | ||
| P/B | 6.04 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.2
EYN/A
EPS(NY)1.04
Fwd EY0.96%
FCF(TTM)3.05
FCFY2.83%
OCF(TTM)3.09
OCFY2.87%
SpS30.84
BVpS17.82
TBVpS15.33
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.63% | ||
| ROE | -1.05% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 43.58% | ||
| FCFM | 9.88% |
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
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-4.84%
GM growth 5Y0.02%
F-Score7
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.49% | ||
| Cap/Sales | 0.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 6.33 |
F-Score7
WACC8.74%
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)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%366.67%
EPS Next Y127.9%
EPS Next 2Y77.97%
EPS Next 3Y63.39%
EPS Next 5Y38.68%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%13.97%
Revenue Next Year15.74%
Revenue Next 2Y14.44%
Revenue Next 3Y13.22%
Revenue Next 5Y12.12%
EBIT growth 1Y48.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year245.55%
EBIT Next 3Y68.89%
EBIT Next 5Y42.84%
FCF growth 1Y338.2%
FCF growth 3Y4.23%
FCF growth 5YN/A
OCF growth 1Y84.43%
OCF growth 3Y-1.49%
OCF growth 5Y73.93%
ROKU INC / ROKU FAQ
What is the fundamental rating for ROKU stock?
ChartMill assigns a fundamental rating of 5 / 10 to ROKU.
What is the valuation status of ROKU INC (ROKU) stock?
ChartMill assigns a valuation rating of 4 / 10 to ROKU INC (ROKU). This can be considered as Fairly Valued.
How profitable is ROKU INC (ROKU) stock?
ROKU INC (ROKU) has a profitability rating of 2 / 10.
What is the financial health of ROKU INC (ROKU) stock?
The financial health rating of ROKU INC (ROKU) is 8 / 10.