ROKU INC (ROKU) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ROKU • US77543R1023

92.13 USD
-1.75 (-1.86%)
At close: Feb 4, 2026
91.75 USD
-0.38 (-0.41%)
After Hours: 2/4/2026, 8:00:01 PM
Fundamental Rating

5

Overall ROKU gets a fundamental rating of 5 out of 10. We evaluated ROKU against 80 industry peers in the Entertainment industry. While ROKU has a great health rating, there are worries on its profitability. ROKU is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • ROKU had negative earnings in the past year.
  • In the past year ROKU had a positive cash flow from operations.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M -600M

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 (-1.05%) which is in line with its industry peers.
Industry RankSector 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
ROKU Yearly ROA, ROE, ROICROKU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200

1.3 Margins

  • With a Gross Margin value of 43.58%, ROKU perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ROKU has remained more or less at the same level.
  • 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 43.58%
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%
ROKU Yearly Profit, Operating, Gross MarginsROKU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 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.
  • Compared to 1 year ago, ROKU has more shares outstanding
  • 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 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

  • ROKU has an Altman-Z score of 5.76. 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 5.76, ROKU belongs to the top of the industry, outperforming 87.50% 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 5.76
ROIC/WACCN/A
WACC9.78%
ROKU Yearly LT Debt VS Equity VS FCFROKU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 2.74 indicates that ROKU has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 2.74, ROKU belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
  • 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 RankSector Rank
Current Ratio 2.74
Quick Ratio 2.62
ROKU Yearly Current Assets VS Current LiabilitesROKU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 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 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%.
  • The Revenue has been growing by 29.51% on average over the past years. This is a very strong growth!
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 Y137.89%
EPS Next 2Y85.07%
EPS Next 3Y67.66%
EPS Next 5Y38.68%
Revenue Next Year16.08%
Revenue Next 2Y14.88%
Revenue Next 3Y13.86%
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.
ROKU Yearly Revenue VS EstimatesROKU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
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 2033 0 2 -2 4 -4

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3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for ROKU. In the last year negative earnings were reported.
  • Based on the Price/Forward Earnings ratio of 72.64, the valuation of ROKU can be described as expensive.
  • ROKU's Price/Forward Earnings is on the same level as the industry average.
  • ROKU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.50.
Industry RankSector Rank
PE N/A
Fwd PE 72.64
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -100 -200 -300 -400

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 RankSector Rank
P/FCF 30.34
EV/EBITDA N/A
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 67.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y85.07%
EPS Next 3Y67.66%

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0

5. Dividend

5.1 Amount

  • ROKU does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ROKU INC

NASDAQ:ROKU (2/4/2026, 8:00:01 PM)

After market: 91.75 -0.38 (-0.41%)

92.13

-1.75 (-1.86%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-30
Earnings (Next)02-12
Inst Owners85.38%
Inst Owner Change-0.6%
Ins Owners0.69%
Ins Owner Change-7.01%
Market Cap13.61B
Revenue(TTM)4.54B
Net Income(TTM)-27.66M
Analysts80
Price Target125.29 (35.99%)
Short Float %5.85%
Short Ratio2.67
Dividend
Industry RankSector 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)6.4%
PT rev (3m)17.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.85%
EPS NY rev (1m)1.86%
EPS NY rev (3m)118.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.86%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 72.64
P/S 3
P/FCF 30.34
P/OCF 29.89
P/B 5.19
P/tB 6.03
EV/EBITDA N/A
EPS(TTM)-0.2
EYN/A
EPS(NY)1.27
Fwd EY1.38%
FCF(TTM)3.04
FCFY3.3%
OCF(TTM)3.08
OCFY3.35%
SpS30.75
BVpS17.77
TBVpS15.29
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 5.76
F-Score7
WACC9.78%
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 Y137.89%
EPS Next 2Y85.07%
EPS Next 3Y67.66%
EPS Next 5Y38.68%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%13.97%
Revenue Next Year16.08%
Revenue Next 2Y14.88%
Revenue Next 3Y13.86%
Revenue Next 5Y12.29%
EBIT growth 1Y48.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year252.04%
EBIT Next 3Y70.58%
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 137.89% in the next year.