ROKU INC (ROKU)

US77543R1023 - Common Stock

65.58  +0.93 (+1.44%)

Premarket: 65.7 +0.12 (+0.18%)

Fundamental Rating

4

Overall ROKU gets a fundamental rating of 4 out of 10. We evaluated ROKU against 77 industry peers in the Entertainment industry. While ROKU has a great health rating, there are worries on its profitability. While showing a medium growth rate, ROKU is valued expensive at the moment.



2

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.
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.

1.2 Ratios

Looking at the Return On Assets, with a value of -16.65%, ROKU is doing worse than 67.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of -30.50%, ROKU is in line with its industry, outperforming 45.45% of the companies in the same industry.
Industry RankSector Rank
ROA -16.65%
ROE -30.5%
ROIC N/A
ROA(3y)-7.33%
ROA(5y)-5.37%
ROE(3y)-13.52%
ROE(5y)-10.09%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

ROKU has a Gross Margin of 45.72%. This is comparable to the rest of the industry: ROKU outperforms 59.74% of its industry peers.
In the last couple of years the Gross Margin of ROKU has remained more or less at the same level.
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 45.72%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.2%
GM growth 5Y0.44%

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.
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 3.48 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU has a better Altman-Z score (3.48) than 85.71% 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 3.48
ROIC/WACCN/A
WACC8.85%

2.3 Liquidity

A Current Ratio of 2.41 indicates that ROKU has no problem at all paying its short term obligations.
ROKU's Current ratio of 2.41 is fine compared to the rest of the industry. ROKU outperforms 75.32% of its industry peers.
A Quick Ratio of 2.34 indicates that ROKU has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.34, ROKU is doing good in the industry, outperforming 74.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.41
Quick Ratio 2.34

5

3. Growth

3.1 Past

The earnings per share for ROKU have decreased strongly by -39.83% in the last year.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.45%.
Measured over the past years, ROKU shows a very strong growth in Revenue. The Revenue has been growing by 36.24% on average per year.
EPS 1Y (TTM)-39.83%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q67.65%
Revenue 1Y (TTM)11.45%
Revenue growth 3Y25.13%
Revenue growth 5Y36.24%
Revenue growth Q2Q13.53%

3.2 Future

The Earnings Per Share is expected to grow by 18.92% on average over the next years. This is quite good.
Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 14.36% on average per year.
EPS Next Y60.29%
EPS Next 2Y33.12%
EPS Next 3Y25.56%
EPS Next 5Y18.92%
Revenue Next Year12.6%
Revenue Next 2Y12.82%
Revenue Next 3Y12.77%
Revenue Next 5Y14.36%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

ROKU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year ROKU is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, ROKU is valued a bit cheaper than 68.83% of the companies in the same industry.
Industry RankSector Rank
P/FCF 54.33
EV/EBITDA N/A

4.3 Compensation for Growth

A more expensive valuation may be justified as ROKU's earnings are expected to grow with 25.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.12%
EPS Next 3Y25.56%

0

5. Dividend

5.1 Amount

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

ROKU INC

NASDAQ:ROKU (3/27/2024, 8:00:03 PM)

Premarket: 65.7 +0.12 (+0.18%)

65.58

+0.93 (+1.44%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.41B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -16.65%
ROE -30.5%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 45.72%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.41
Quick Ratio 2.34
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-39.83%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y60.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.45%
Revenue growth 3Y25.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y