CLOUDFLARE INC - CLASS A (NET)
US18915M1071 - Common Stock
Overall NET gets a fundamental rating of 4 out of 10. We evaluated NET against 84 industry peers in the IT Services industry. NET scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. NET is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
NET had positive earnings in the past year.
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
NET has a Return On Assets (-3.06%) which is in line with its industry peers.
NET has a Return On Equity (-9.64%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.06% | ||
| ROE | -9.64% | ||
| 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
The Gross Margin of NET (77.53%) is better than 95.12% of its industry peers.
In the last couple of years the Gross Margin of NET has remained more or less at the same level.
NET 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 | 77.53% |
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.
The number of shares outstanding for NET has been increased compared to 1 year ago.
NET has more shares outstanding than it did 5 years ago.
The debt/assets ratio for NET has been reduced compared to a year ago.
2.2 Solvency
NET has an Altman-Z score of 10.71. This indicates that NET is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.71, NET belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
The Debt to FCF ratio of NET is 7.57, which is on the high side as it means it would take NET, 7.57 years of fcf income to pay off all of its debts.
NET has a Debt to FCF ratio (7.57) which is comparable to the rest of the industry.
NET has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
NET's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. NET is outperformed by 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 7.57 | ||
| Altman-Z | 10.71 |
ROIC/WACCN/A
WACC10.61%
2.3 Liquidity
A Current Ratio of 3.37 indicates that NET has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.37, NET belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
NET has a Quick Ratio of 3.37. This indicates that NET is financially healthy and has no problem in meeting its short term obligations.
NET has a better Quick ratio (3.37) than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 77.50% over the past year.
The Revenue has grown by 30.04% in the past year. This is a very strong growth!
NET shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 46.42% yearly.
EPS 1Y (TTM)77.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)30.04%
Revenue growth 3Y44.35%
Revenue growth 5Y46.42%
Sales Q2Q%28.15%
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 38.70% on average per year.
NET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.83% yearly.
EPS Next Y48.43%
EPS Next 2Y33.29%
EPS Next 3Y31.49%
EPS Next 5Y38.7%
Revenue Next Year29.12%
Revenue Next 2Y27.86%
Revenue Next 3Y27.16%
Revenue Next 5Y27.83%
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
Based on the Price/Earnings ratio of 146.82, the valuation of NET can be described as expensive.
NET's Price/Earnings is on the same level as the industry average.
NET's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 119.74 indicates a quite expensive valuation of NET.
NET's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NET to the average of the S&P500 Index (23.82), we can say NET is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 146.82 | ||
| Fwd PE | 119.74 |
4.2 Price Multiples
NET's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 210.59 | ||
| 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 31.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.03
PEG (5Y)N/A
EPS Next 2Y33.29%
EPS Next 3Y31.49%
5. Dividend
5.1 Amount
NET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CLOUDFLARE INC - CLASS A
NYSE:NET (11/21/2024, 8:04:00 PM)
Premarket: 104.37 +0.13 (+0.12%)104.24
+7.77 (+8.05%)
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 Cap35.77B
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)
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EPS beat(16)
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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 | 146.82 | ||
| Fwd PE | 119.74 | ||
| 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)3.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.06% | ||
| ROE | -9.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.53% | ||
| 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)77.5%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y48.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)30.04%
Revenue growth 3Y44.35%
Revenue growth 5Y
Sales 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