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ROKU INC (ROKU) Stock Fundamental Analysis

NASDAQ:ROKU - US77543R1023 - Common Stock

95.86 USD
-0.7 (-0.72%)
Last: 9/2/2025, 8:00:02 PM
95.9 USD
+0.04 (+0.04%)
Pre-Market: 9/3/2025, 8:00:00 AM
Fundamental Rating

5

Overall ROKU gets a fundamental rating of 5 out of 10. We evaluated ROKU against 79 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. While showing a medium growth rate, ROKU is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

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.
In the past 5 years ROKU reported 4 times negative net income.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M

1.2 Ratios

ROKU's Return On Assets of -1.44% is in line compared to the rest of the industry. ROKU outperforms 54.43% of its industry peers.
ROKU has a Return On Equity (-2.37%) which is in line with its industry peers.
Industry RankSector Rank
ROA -1.44%
ROE -2.37%
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
ROKU Yearly ROA, ROE, ROICROKU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200

1.3 Margins

ROKU has a Gross Margin of 44.04%. 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 44.04%
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%
ROKU Yearly Profit, Operating, Gross MarginsROKU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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8

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
ROKU Yearly Total Debt VS Total AssetsROKU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

ROKU has an Altman-Z score of 6.04. This indicates that ROKU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.04, ROKU belongs to the top of the industry, outperforming 82.28% of the companies in the same industry.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.04
ROIC/WACCN/A
WACC8.87%
ROKU Yearly LT Debt VS Equity VS FCFROKU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

ROKU has a Current Ratio of 2.85. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ROKU (2.85) is better than 83.54% of its industry peers.
ROKU has a Quick Ratio of 2.75. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ROKU (2.75) is better than 77.22% of its industry peers.
Industry RankSector Rank
Current Ratio 2.85
Quick Ratio 2.75
ROKU Yearly Current Assets VS Current LiabilitesROKU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 87.90% over the past year.
Looking at the last year, ROKU shows a quite strong growth in Revenue. The Revenue has grown by 17.32% 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)87.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.17%
Revenue 1Y (TTM)17.32%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%14.76%

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 40.40% on average per year.
The Revenue is expected to grow by 11.55% on average over the next years. This is quite good.
EPS Next Y114.19%
EPS Next 2Y71.78%
EPS Next 3Y65.42%
EPS Next 5Y40.4%
Revenue Next Year15.11%
Revenue Next 2Y13.54%
Revenue Next 3Y12.72%
Revenue Next 5Y11.55%

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.
ROKU Yearly Revenue VS EstimatesROKU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B
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 0 2 -2 4 -4

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3

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 113.29, which means the current valuation is very expensive for ROKU.
ROKU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. ROKU is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 113.29
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 -100 -200

4.2 Price Multiples

ROKU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROKU is cheaper than 69.62% of the companies in the same industry.
Industry RankSector Rank
P/FCF 36.23
EV/EBITDA N/A
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 65.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y71.78%
EPS Next 3Y65.42%

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0

5. Dividend

5.1 Amount

No dividends for ROKU!.
Industry RankSector Rank
Dividend Yield N/A

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ROKU INC

NASDAQ:ROKU (9/2/2025, 8:00:02 PM)

Premarket: 95.9 +0.04 (+0.04%)

95.86

-0.7 (-0.72%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-28 2025-10-28/amc
Inst Owners86.17%
Inst Owner Change2.03%
Ins Owners0.68%
Ins Owner Change13.05%
Market Cap14.12B
Analysts76.41
Price Target102.08 (6.49%)
Short Float %7.84%
Short Ratio2.79
Dividend
Industry RankSector 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)87.93%
Min EPS beat(2)31.35%
Max EPS beat(2)144.5%
EPS beat(4)4
Avg EPS beat(4)74.8%
Min EPS beat(4)31.35%
Max EPS beat(4)144.5%
EPS beat(8)6
Avg EPS beat(8)47.18%
EPS beat(12)10
Avg EPS beat(12)37.97%
EPS beat(16)12
Avg EPS beat(16)75.94%
Revenue beat(2)1
Avg Revenue beat(2)0.47%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)2.57%
Revenue beat(8)6
Avg Revenue beat(8)1.65%
Revenue beat(12)10
Avg Revenue beat(12)3.05%
Revenue beat(16)11
Avg Revenue beat(16)1.39%
PT rev (1m)10.4%
PT rev (3m)16.7%
EPS NQ rev (1m)13.09%
EPS NQ rev (3m)62.51%
EPS NY rev (1m)180.55%
EPS NY rev (3m)174.13%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)2.22%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 113.29
P/S 3.21
P/FCF 36.23
P/OCF 35.63
P/B 5.45
P/tB 6.37
EV/EBITDA N/A
EPS(TTM)-0.42
EYN/A
EPS(NY)0.85
Fwd EY0.88%
FCF(TTM)2.65
FCFY2.76%
OCF(TTM)2.69
OCFY2.81%
SpS29.83
BVpS17.58
TBVpS15.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.44%
ROE -2.37%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 44.04%
FCFM 8.87%
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 Turnover1.03
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 4.91%
Cap/Sales 0.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.85
Quick Ratio 2.75
Altman-Z 6.04
F-Score6
WACC8.87%
ROIC/WACCN/A
Cap/Depr(3y)133.72%
Cap/Depr(5y)144.54%
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)87.9%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.17%
EPS Next Y114.19%
EPS Next 2Y71.78%
EPS Next 3Y65.42%
EPS Next 5Y40.4%
Revenue 1Y (TTM)17.32%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%14.76%
Revenue Next Year15.11%
Revenue Next 2Y13.54%
Revenue Next 3Y12.72%
Revenue Next 5Y11.55%
EBIT growth 1Y48.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year244.02%
EBIT Next 3Y69.46%
EBIT Next 5Y43.89%
FCF growth 1Y334.15%
FCF growth 3Y4.23%
FCF growth 5YN/A
OCF growth 1Y2490.99%
OCF growth 3Y-1.49%
OCF growth 5Y73.93%