110.72 USD
-0.45 (-0.4%)
110.8 USD
+0.08 (+0.07%)
We assign a fundamental rating of 5 out of 10 to ROKU. ROKU was compared to 80 industry peers in the Entertainment industry. ROKU has a great financial health rating, but its profitability evaluates not so good. ROKU is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ROKU has reported negative net income.
In the past year ROKU had a positive cash flow from operations.
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.
1.2 Ratios
ROKU has a Return On Assets (-0.63%) which is in line with its industry peers.
ROKU has a Return On Equity of -1.05%. This is comparable to the rest of the industry: ROKU outperforms 60.00% of its industry peers.
| 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.
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 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.
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 6.60 indicates that ROKU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.60, ROKU belongs to the top of the industry, outperforming 85.00% 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 | 6.6 |
ROIC/WACCN/A
WACC10.35%
2.3 Liquidity
ROKU has a Current Ratio of 2.74. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
ROKU has a Current ratio of 2.74. This is amongst the best in the industry. ROKU outperforms 81.25% of its industry peers.
A Quick Ratio of 2.62 indicates that ROKU has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.62, ROKU belongs to the best of the industry, outperforming 81.25% 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.
Looking at the last year, ROKU shows a quite strong growth in Revenue. The Revenue has grown by 16.61% 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)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.
Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 12.29% on average per year.
EPS Next Y137.2%
EPS Next 2Y84.44%
EPS Next 3Y66.67%
EPS Next 5Y38.68%
Revenue Next Year16.21%
Revenue Next 2Y14.75%
Revenue Next 3Y13.77%
Revenue Next 5Y12.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
ROKU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 88.75 indicates a quite expensive valuation of ROKU.
The rest of the industry has a similar Price/Forward Earnings ratio as ROKU.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, ROKU is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 88.75 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ROKU is valued a bit cheaper than 71.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.46 | ||
| EV/EBITDA | N/A |
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 66.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y84.44%
EPS Next 3Y66.67%
5. Dividend
5.1 Amount
No dividends for ROKU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
110.72
-0.45 (-0.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners85.38%
Inst Owner Change0.6%
Ins Owners0.69%
Ins Owner Change-8.22%
Market Cap16.36B
Revenue(TTM)4.54B
Net Income(TTM)-27.66M
Analysts80
Price Target117.75 (6.35%)
Short Float %5.41%
Short Ratio2.21
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)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)3.52%
PT rev (3m)12.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.09%
EPS NY rev (1m)0.98%
EPS NY rev (3m)68.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 88.75 | ||
| P/S | 3.6 | ||
| P/FCF | 36.46 | ||
| P/OCF | 35.93 | ||
| P/B | 6.23 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.2
EYN/A
EPS(NY)1.25
Fwd EY1.13%
FCF(TTM)3.04
FCFY2.74%
OCF(TTM)3.08
OCFY2.78%
SpS30.75
BVpS17.77
TBVpS15.29
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 | 6.6 |
F-Score7
WACC10.35%
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 Y137.2%
EPS Next 2Y84.44%
EPS Next 3Y66.67%
EPS Next 5Y38.68%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%13.97%
Revenue Next Year16.21%
Revenue Next 2Y14.75%
Revenue Next 3Y13.77%
Revenue Next 5Y12.29%
EBIT growth 1Y48.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year251.91%
EBIT Next 3Y70.21%
EBIT Next 5Y44.5%
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.
Can you provide the valuation status for ROKU INC?
ChartMill assigns a valuation rating of 3 / 10 to ROKU INC (ROKU). This can be considered as Overvalued.
How profitable is ROKU INC (ROKU) stock?
ROKU INC (ROKU) has a profitability rating of 2 / 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 137.2% in the next year.