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ROKU INC (ROKU) Stock Fundamental Analysis

NASDAQ:ROKU - Nasdaq - US77543R1023 - Common Stock - Currency: USD

69.77  +0.21 (+0.3%)

After market: 69.8 +0.03 (+0.04%)

Fundamental Rating

4

ROKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 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.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

ROKU had negative earnings in the past year.
ROKU had a positive operating cash flow in the past year.
ROKU had negative earnings in 4 of the past 5 years.
In the past 5 years ROKU always reported a positive cash flow from operatings.
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 has a Return On Assets of -2.54%. This is comparable to the rest of the industry: ROKU outperforms 56.34% of its industry peers.
ROKU's Return On Equity of -4.20% is fine compared to the rest of the industry. ROKU outperforms 64.79% of its industry peers.
Industry RankSector Rank
ROA -2.54%
ROE -4.2%
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

With a Gross Margin value of 43.80%, ROKU perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
ROKU's Gross Margin has been stable in the last couple of years.
ROKU does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 43.8%
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.
The number of shares outstanding for ROKU has been increased compared to 1 year ago.
Compared to 5 years ago, ROKU has more shares outstanding
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

An Altman-Z score of 4.68 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU's Altman-Z score of 4.68 is amongst the best of the industry. ROKU outperforms 85.92% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.68
ROIC/WACCN/A
WACC9.22%
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 2.86. 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 2.86, ROKU belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
A Quick Ratio of 2.74 indicates that ROKU has no problem at all paying its short term obligations.
ROKU has a better Quick ratio (2.74) than 81.69% of its industry peers.
Industry RankSector Rank
Current Ratio 2.86
Quick Ratio 2.74
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

ROKU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 81.70%, which is quite impressive.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.30%.
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)81.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.71%
Revenue 1Y (TTM)17.3%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%15.79%

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 34.53% on average per year.
ROKU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.92% yearly.
EPS Next Y80.86%
EPS Next 2Y63.55%
EPS Next 3Y57.71%
EPS Next 5Y34.53%
Revenue Next Year12.62%
Revenue Next 2Y12.06%
Revenue Next 3Y11.46%
Revenue Next 5Y11.92%

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 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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2

4. Valuation

4.1 Price/Earnings Ratio

ROKU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 116.18, the valuation of ROKU can be described as expensive.
ROKU's Price/Forward Earnings ratio is in line with the industry average.
ROKU is valuated expensively when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 116.18
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 100

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, ROKU is valued a bit cheaper than the industry average as 61.97% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 33.68
EV/EBITDA N/A
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

ROKU's 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 57.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.55%
EPS Next 3Y57.71%

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0

5. Dividend

5.1 Amount

ROKU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ROKU INC

NASDAQ:ROKU (5/22/2025, 8:00:01 PM)

After market: 69.8 +0.03 (+0.04%)

69.77

+0.21 (+0.3%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners84.57%
Inst Owner Change1.62%
Ins Owners0.61%
Ins Owner Change4.46%
Market Cap10.23B
Analysts75
Price Target87.47 (25.37%)
Short Float %6.1%
Short Ratio1.72
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)36.45%
Min EPS beat(2)31.35%
Max EPS beat(2)41.56%
EPS beat(4)4
Avg EPS beat(4)49.89%
Min EPS beat(4)31.35%
Max EPS beat(4)81.79%
EPS beat(8)6
Avg EPS beat(8)34.23%
EPS beat(12)9
Avg EPS beat(12)24.54%
EPS beat(16)12
Avg EPS beat(16)86.11%
Revenue beat(2)1
Avg Revenue beat(2)0.97%
Min Revenue beat(2)-0.62%
Max Revenue beat(2)2.57%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)2.57%
Revenue beat(8)6
Avg Revenue beat(8)2.36%
Revenue beat(12)9
Avg Revenue beat(12)2.34%
Revenue beat(16)11
Avg Revenue beat(16)1.44%
PT rev (1m)-15.64%
PT rev (3m)5.33%
EPS NQ rev (1m)-28.59%
EPS NQ rev (3m)7.93%
EPS NY rev (1m)41.06%
EPS NY rev (3m)72.57%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-3.11%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-0.81%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 116.18
P/S 2.41
P/FCF 33.68
P/OCF 33
P/B 4.05
P/tB 4.37
EV/EBITDA N/A
EPS(TTM)-0.73
EYN/A
EPS(NY)0.6
Fwd EY0.86%
FCF(TTM)2.07
FCFY2.97%
OCF(TTM)2.11
OCFY3.03%
SpS28.99
BVpS17.22
TBVpS15.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.54%
ROE -4.2%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 43.8%
FCFM 7.14%
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 Turnover1.02
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 10.29%
Cap/Sales 0.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.86
Quick Ratio 2.74
Altman-Z 4.68
F-Score6
WACC9.22%
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)81.7%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%45.71%
EPS Next Y80.86%
EPS Next 2Y63.55%
EPS Next 3Y57.71%
EPS Next 5Y34.53%
Revenue 1Y (TTM)17.3%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%15.79%
Revenue Next Year12.62%
Revenue Next 2Y12.06%
Revenue Next 3Y11.46%
Revenue Next 5Y11.92%
EBIT growth 1Y47.28%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year234.91%
EBIT Next 3Y67.27%
EBIT Next 5Y42.13%
FCF growth 1Y168.34%
FCF growth 3Y4.23%
FCF growth 5YN/A
OCF growth 1Y227.4%
OCF growth 3Y-1.49%
OCF growth 5Y73.93%