108.82 USD
-2.05 (-1.85%)
109 USD
+0.18 (+0.17%)
Taking everything into account, ROKU scores 5 out of 10 in our fundamental rating. 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.
ROKU had a positive operating cash flow in the past year.
In the past 5 years ROKU reported 4 times negative net income.
ROKU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROKU has a Return On Assets (-0.63%) which is comparable to the rest of the industry.
ROKU has a Return On Equity (-1.05%) which is comparable to the rest of the industry.
| 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
With a Gross Margin value of 43.58%, ROKU perfoms like the industry average, outperforming 49.38% 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 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.
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
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.
2.2 Solvency
An Altman-Z score of 6.50 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU's Altman-Z score of 6.50 is amongst the best of the industry. ROKU outperforms 86.42% of its industry peers.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.5 |
ROIC/WACCN/A
WACC8.8%
2.3 Liquidity
A Current Ratio of 2.74 indicates that ROKU has no problem at all paying its short term obligations.
ROKU has a better Current ratio (2.74) than 82.72% of its industry peers.
ROKU has a Quick Ratio of 2.62. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.62, ROKU belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.74 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
ROKU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 83.33%, which is quite impressive.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.61%.
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
ROKU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.68% yearly.
The Revenue is expected to grow by 12.12% on average over the next years. This is quite good.
EPS Next Y136.84%
EPS Next 2Y83.49%
EPS Next 3Y65.9%
EPS Next 5Y38.68%
Revenue Next Year16.18%
Revenue Next 2Y14.61%
Revenue Next 3Y13.58%
Revenue Next 5Y12.12%
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. 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 89.45, which means the current valuation is very expensive for ROKU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROKU is on the same level as its industry peers.
ROKU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 89.45 |
4.2 Price Multiples
71.60% of the companies in the same industry are more expensive than ROKU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.83 | ||
| EV/EBITDA | N/A |
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 65.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y83.49%
EPS Next 3Y65.9%
5. Dividend
5.1 Amount
No dividends for ROKU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
108.82
-2.05 (-1.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners85.71%
Inst Owner Change1.79%
Ins Owners0.69%
Ins Owner Change-8.34%
Market Cap16.08B
Revenue(TTM)4.54B
Net Income(TTM)-27.66M
Analysts77.89
Price Target113.74 (4.52%)
Short Float %5.82%
Short Ratio2.39
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)6.76%
PT rev (3m)9.28%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)25.09%
EPS NY rev (1m)32.05%
EPS NY rev (3m)159.66%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 89.45 | ||
| P/S | 3.54 | ||
| P/FCF | 35.83 | ||
| P/OCF | 35.31 | ||
| P/B | 6.12 | ||
| P/tB | 7.12 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.2
EYN/A
EPS(NY)1.22
Fwd EY1.12%
FCF(TTM)3.04
FCFY2.79%
OCF(TTM)3.08
OCFY2.83%
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 | 6.5 |
F-Score7
WACC8.8%
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 Y136.84%
EPS Next 2Y83.49%
EPS Next 3Y65.9%
EPS Next 5Y38.68%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%13.97%
Revenue Next Year16.18%
Revenue Next 2Y14.61%
Revenue Next 3Y13.58%
Revenue Next 5Y12.12%
EBIT growth 1Y48.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year251.91%
EBIT Next 3Y69.84%
EBIT Next 5Y42.84%
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.
What is the valuation status of ROKU INC (ROKU) stock?
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.
What is the financial health of ROKU INC (ROKU) stock?
The financial health rating of ROKU INC (ROKU) is 8 / 10.