95.63 USD
+0.75 (+0.79%)
96 USD
+0.37 (+0.39%)
Overall ROKU gets a fundamental rating of 5 out of 10. We evaluated ROKU against 80 industry peers in the Entertainment industry. No worries on liquidiy or solvency for ROKU as it has an excellent financial health rating, but there are worries on the profitability. ROKU has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years ROKU had a positive operating cash flow.
1.2 Ratios
ROKU has a Return On Assets (-0.63%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -1.05%, ROKU is in line with its industry, outperforming 58.75% 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
The Gross Margin of ROKU (43.58%) is comparable to the rest of the 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 | 43.58% |
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.
Compared to 1 year ago, ROKU has more shares outstanding
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 5.83 indicates that ROKU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.83, ROKU belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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 | 5.83 |
ROIC/WACCN/A
WACC8.65%
2.3 Liquidity
A Current Ratio of 2.74 indicates that ROKU has no problem at all paying its short term obligations.
The Current ratio of ROKU (2.74) is better than 83.75% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.62, ROKU belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
| 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.
The Revenue has grown by 16.61% in the past year. This is quite good.
ROKU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.51% yearly.
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
Based on estimates for the next years, ROKU will show a very strong growth in Earnings Per Share. The EPS will grow by 38.68% on average per year.
ROKU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.12% yearly.
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
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.
The Price/Forward Earnings ratio is 92.05, which means the current valuation is very expensive for ROKU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROKU indicates a somewhat cheap valuation: ROKU is cheaper than 61.25% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ROKU to the average of the S&P500 Index (36.12), we can say ROKU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 92.05 |
4.2 Price Multiples
ROKU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROKU is cheaper than 71.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.4 | ||
| 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.
ROKU's earnings are expected to grow with 63.39% in the coming years. This may justify a more expensive valuation.
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 |
95.63
+0.75 (+0.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners88.69%
Inst Owner Change1.78%
Ins Owners0.67%
Ins Owner Change2.08%
Market Cap14.09B
Revenue(TTM)4.54B
Net Income(TTM)-27.66M
Analysts77.44
Price Target113.37 (18.55%)
Short Float %5.08%
Short Ratio2
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)8.09%
PT rev (3m)11.06%
EPS NQ rev (1m)23.51%
EPS NQ rev (3m)35.42%
EPS NY rev (1m)60.53%
EPS NY rev (3m)96.63%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)2.53%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 92.05 | ||
| P/S | 3.1 | ||
| P/FCF | 31.4 | ||
| P/OCF | 30.94 | ||
| P/B | 5.37 | ||
| P/tB | 6.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.2
EYN/A
EPS(NY)1.04
Fwd EY1.09%
FCF(TTM)3.05
FCFY3.18%
OCF(TTM)3.09
OCFY3.23%
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 | 5.83 |
F-Score7
WACC8.65%
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.