CLOUDFLARE INC - CLASS A (NET)
US18915M1071 - Common Stock
NET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the IT Services industry. While NET seems to be doing ok healthwise, there are quite some concerns on its profitability. NET is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year NET was profitable.
In the past year NET had a positive cash flow from operations.
NET had negative earnings in each of the past 5 years.
In multiple years NET reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of -6.48%, NET is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
NET's Return On Equity of -22.75% is on the low side compared to the rest of the industry. NET is outperformed by 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.48% | ||
| ROE | -22.75% | ||
| ROIC | N/A |
ROA(3y)-8.37%
ROA(5y)-9.3%
ROE(3y)-29%
ROE(5y)-23.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
NET has a better Gross Margin (76.78%) than 95.24% of its industry peers.
NET's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for NET so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.1%
GM growth 5Y-0.27%
2. Health
2.1 Basic Checks
NET does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, NET has more shares outstanding
NET has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NET has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.01 indicates that NET is not in any danger for bankruptcy at the moment.
NET has a better Altman-Z score (8.01) than 88.10% of its industry peers.
NET has a debt to FCF ratio of 9.10. This is a negative value and a sign of low solvency as NET would need 9.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.10, NET is in line with its industry, outperforming 45.24% of the companies in the same industry.
NET has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
NET has a Debt to Equity ratio of 1.61. This is in the lower half of the industry: NET underperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 9.1 | ||
| Altman-Z | 8.01 |
ROIC/WACCN/A
WACC10.25%
2.3 Liquidity
A Current Ratio of 3.51 indicates that NET has no problem at all paying its short term obligations.
NET has a Current ratio of 3.51. This is amongst the best in the industry. NET outperforms 83.33% of its industry peers.
NET has a Quick Ratio of 3.51. This indicates that NET is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of NET (3.51) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 3.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 183.58% over the past year.
NET shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.51%.
NET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 46.42% yearly.
EPS 1Y (TTM)183.58%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q100%
Revenue 1Y (TTM)31.51%
Revenue growth 3Y44.35%
Revenue growth 5Y46.42%
Revenue growth Q2Q30.47%
3.2 Future
Based on estimates for the next years, NET will show a very strong growth in Earnings Per Share. The EPS will grow by 39.68% on average per year.
NET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.87% yearly.
EPS Next Y24.3%
EPS Next 2Y26.81%
EPS Next 3Y32.07%
EPS Next 5Y39.68%
Revenue Next Year28.89%
Revenue Next 2Y28.34%
Revenue Next 3Y27.76%
Revenue Next 5Y27.87%
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
The Price/Earnings ratio is 131.98, which means the current valuation is very expensive for NET.
Based on the Price/Earnings ratio, NET is valued a bit more expensive than 63.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. NET is valued rather expensively when compared to this.
NET is valuated quite expensively with a Price/Forward Earnings ratio of 95.47.
NET's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. NET is more expensive than 60.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, NET is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.98 | ||
| Fwd PE | 95.47 |
4.2 Price Multiples
61.90% of the companies in the same industry are cheaper than NET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 181.06 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NET does not grow enough to justify the current Price/Earnings ratio.
NET's earnings are expected to grow with 32.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.43
PEG (5Y)N/A
EPS Next 2Y26.81%
EPS Next 3Y32.07%
5. Dividend
5.1 Amount
No dividends for NET!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CLOUDFLARE INC - CLASS A
NYSE:NET (5/17/2024, 7:15:54 PM)
After market: 75.05 -0.18 (-0.24%)75.23
+0.09 (+0.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
Max EPS beat(4)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 131.98 | ||
| Fwd PE | 95.47 | ||
| 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)5.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.48% | ||
| ROE | -22.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 76.78% | ||
| 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.51 | ||
| Quick Ratio | 3.51 | ||
| 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)183.58%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y24.3%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.51%
Revenue growth 3Y44.35%
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