ROKU INC (ROKU) Fundamental Analysis & Valuation
NASDAQ:ROKU • US77543R1023
98.11 USD
+0.6 (+0.62%)
At close: Mar 5, 2026
98.11 USD
0 (0%)
After Hours: 3/5/2026, 4:17:51 PM
This ROKU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to ROKU. ROKU was compared to 80 industry peers in the Entertainment industry. While ROKU has a great health rating, its profitability is only average at the moment. ROKU is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. ROKU Profitability Analysis
1.1 Basic Checks
- In the past year ROKU was profitable.
- 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.
- In the past 5 years ROKU always reported a positive cash flow from operatings.
1.2 Ratios
- ROKU has a Return On Assets of 1.99%. This is in the better half of the industry: ROKU outperforms 77.50% of its industry peers.
- Looking at the Return On Equity, with a value of 3.32%, ROKU is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
- ROKU's Profit Margin of 1.87% is fine compared to the rest of the industry. ROKU outperforms 67.50% of its industry peers.
- The Gross Margin of ROKU (43.79%) is comparable to the rest of the industry.
- ROKU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
- ROKU has more shares outstanding than it did 1 year ago.
- 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.
2.2 Solvency
- An Altman-Z score of 6.05 indicates that ROKU is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.05, ROKU belongs to the top of the industry, outperforming 91.25% 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 | 6.05 |
ROIC/WACCN/A
WACC9.14%
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.
- ROKU's Current ratio of 2.75 is amongst the best of the industry. ROKU outperforms 81.25% of its industry peers.
- A Quick Ratio of 2.66 indicates that ROKU has no problem at all paying its short term obligations.
- ROKU's Quick ratio of 2.66 is amongst the best of the industry. ROKU outperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.66 |
3. ROKU Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 164.04% over the past year.
- ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.18%.
- Measured over the past years, ROKU shows a very strong growth in Revenue. The Revenue has been growing by 21.65% on average per year.
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
- ROKU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.99% yearly.
- Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 11.42% on average per year.
EPS Next Y124.56%
EPS Next 2Y106.85%
EPS Next 3Y63.45%
EPS Next 5Y42.99%
Revenue Next Year17.01%
Revenue Next 2Y14.11%
Revenue Next 3Y12.96%
Revenue Next 5Y11.42%
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. ROKU Valuation Analysis
4.1 Price/Earnings Ratio
- ROKU is valuated quite expensively with a Price/Earnings ratio of 172.12.
- 61.25% of the companies in the same industry are more expensive than ROKU, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.03. ROKU is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 76.65 indicates a quite expensive valuation of ROKU.
- The rest of the industry has a similar Price/Forward Earnings ratio as ROKU.
- When comparing the Price/Forward Earnings ratio of ROKU to the average of the S&P500 Index (25.11), we can say ROKU is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 172.12 | ||
| Fwd PE | 76.65 |
4.2 Price Multiples
- ROKU's Enterprise Value to EBITDA is on the same level as the industry average.
- ROKU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROKU is cheaper than 73.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.3 | ||
| EV/EBITDA | 171.22 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ROKU's earnings are expected to grow with 63.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y106.85%
EPS Next 3Y63.45%
5. ROKU Dividend Analysis
5.1 Amount
- ROKU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ROKU Fundamentals: All Metrics, Ratios and Statistics
98.11
+0.6 (+0.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners85.38%
Inst Owner Change-1.32%
Ins Owners0.69%
Ins Owner Change-9.41%
Market Cap14.50B
Revenue(TTM)4.74B
Net Income(TTM)88.36M
Analysts80.53
Price Target128.31 (30.78%)
Short Float %6.35%
Short Ratio2.36
Dividend
| Industry Rank | Sector 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)2.41%
PT rev (3m)13.18%
EPS NQ rev (1m)3123.2%
EPS NQ rev (3m)12992.8%
EPS NY rev (1m)0.92%
EPS NY rev (3m)23.21%
Revenue NQ rev (1m)3.72%
Revenue NQ rev (3m)4.16%
Revenue NY rev (1m)2.92%
Revenue NY rev (3m)3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 172.12 | ||
| Fwd PE | 76.65 | ||
| P/S | 3.06 | ||
| P/FCF | 30.3 | ||
| P/OCF | 29.97 | ||
| P/B | 5.45 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 171.22 |
EPS(TTM)0.57
EY0.58%
EPS(NY)1.28
Fwd EY1.3%
FCF(TTM)3.24
FCFY3.3%
OCF(TTM)3.27
OCFY3.34%
SpS32.06
BVpS17.99
TBVpS15.56
PEG (NY)1.38
PEG (5Y)N/A
Graham Number15.19
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.05 |
F-Score8
WACC9.14%
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 Y124.56%
EPS Next 2Y106.85%
EPS Next 3Y63.45%
EPS Next 5Y42.99%
Revenue 1Y (TTM)15.18%
Revenue growth 3Y14.86%
Revenue growth 5Y21.65%
Sales Q2Q%16.14%
Revenue Next Year17.01%
Revenue Next 2Y14.11%
Revenue Next 3Y12.96%
Revenue Next 5Y11.42%
EBIT growth 1Y98.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1593.42%
EBIT Next 3Y194.6%
EBIT Next 5Y104.29%
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 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 124.56% in the next year.