ROKU INC (ROKU) Fundamental Analysis & Valuation

NASDAQ:ROKU • US77543R1023

Current stock price

95.06 USD
-0.53 (-0.55%)
At close:
94.9 USD
-0.16 (-0.17%)
After Hours:

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

  • ROKU had positive earnings in the past year.
  • 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.
  • Each year in the past 5 years ROKU had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 1.99%, ROKU is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
  • The Return On Equity of ROKU (3.32%) is better than 72.15% of its industry peers.
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

  • ROKU has a Profit Margin of 1.87%. This is in the better half of the industry: ROKU outperforms 67.09% of its industry peers.
  • The Gross Margin of ROKU (43.79%) 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.
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.
  • 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.
  • 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 5.94 indicates that ROKU is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.94, ROKU belongs to the top of the industry, outperforming 92.41% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.94
ROIC/WACCN/A
WACC9.42%
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.
  • Looking at the Current ratio, with a value of 2.75, ROKU belongs to the top of the industry, outperforming 82.28% of the companies in the same industry.
  • A Quick Ratio of 2.66 indicates that ROKU has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.66, ROKU belongs to the top of the industry, outperforming 82.28% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an impressive 164.04% over the past year.
  • The Revenue has grown by 15.18% in the past year. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 55.00% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 12.23% on average per year.
EPS Next Y272.6%
EPS Next 2Y138.74%
EPS Next 3Y96.64%
EPS Next 5Y55%
Revenue Next Year17.37%
Revenue Next 2Y14.64%
Revenue Next 3Y13.05%
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 166.77, the valuation of ROKU can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of ROKU indicates a somewhat cheap valuation: ROKU is cheaper than 62.03% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, ROKU is valued quite expensively.
  • With a Price/Forward Earnings ratio of 44.76, ROKU can be considered very expensive at the moment.
  • 68.35% 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 22.79.
Industry RankSector Rank
PE 166.77
Fwd PE 44.76
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROKU is on the same level as its industry peers.
  • 75.95% of the companies in the same industry are more expensive than ROKU, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 29.29
EV/EBITDA 166.49
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • ROKU's 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 96.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y138.74%
EPS Next 3Y96.64%

More info and screens

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

0

5. ROKU Dividend Analysis

5.1 Amount

  • No dividends for ROKU!.
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 (3/25/2026, 8:00:02 PM)

After market: 94.9 -0.16 (-0.17%)

95.06

-0.53 (-0.55%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners86.1%
Inst Owner Change-1.3%
Ins Owners0.67%
Ins Owner Change9.02%
Market Cap14.01B
Revenue(TTM)4.74B
Net Income(TTM)88.36M
Analysts83.16
Price Target128.31 (34.98%)
Short Float %6.37%
Short Ratio2.23
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)2.06%
PT rev (3m)12.81%
EPS NQ rev (1m)15.46%
EPS NQ rev (3m)45788.7%
EPS NY rev (1m)65.92%
EPS NY rev (3m)74.57%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)3.73%
Valuation
Industry RankSector Rank
PE 166.77
Fwd PE 44.76
P/S 2.96
P/FCF 29.29
P/OCF 28.97
P/B 5.27
P/tB 6.1
EV/EBITDA 166.49
EPS(TTM)0.57
EY0.6%
EPS(NY)2.12
Fwd EY2.23%
FCF(TTM)3.25
FCFY3.41%
OCF(TTM)3.28
OCFY3.45%
SpS32.13
BVpS18.03
TBVpS15.59
PEG (NY)0.61
PEG (5Y)N/A
Graham Number15.21
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 5.94
F-Score8
WACC9.42%
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 Y272.6%
EPS Next 2Y138.74%
EPS Next 3Y96.64%
EPS Next 5Y55%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y14.86%
Revenue growth 5Y21.65%
Sales Q2Q%16.14%
Revenue Next Year17.37%
Revenue Next 2Y14.64%
Revenue Next 3Y13.05%
Revenue Next 5Y12.23%
EBIT growth 1Y98.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1593.35%
EBIT Next 3Y194.6%
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.


How profitable is ROKU INC (ROKU) stock?

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


Can you provide the financial health for ROKU stock?

The financial health rating of ROKU INC (ROKU) is 8 / 10.


Can you provide the expected EPS growth for ROKU stock?

The Earnings per Share (EPS) of ROKU INC (ROKU) is expected to grow by 272.6% in the next year.