CLOUDFLARE INC - CLASS A (NET) Stock Fundamental Analysis
NYSE:NET - New York Stock Exchange, Inc. - US18915M1071 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NET. NET was compared to 82 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
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.
NET had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -2.39%, NET perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
NET has a Return On Equity (-7.53%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.39% | ||
| ROE | -7.53% | ||
| ROIC | N/A |
ROA(3y)-5.51%
ROA(5y)-7.23%
ROE(3y)-20.88%
ROE(5y)-21.83%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 77.32%, NET belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
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 | 77.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.12%
GM growth 5Y-0.15%
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.
The number of shares outstanding for NET has been increased compared to 5 years ago.
The debt/assets ratio for NET has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 14.36 indicates that NET is not in any danger for bankruptcy at the moment.
The Altman-Z score of NET (14.36) is better than 96.15% of its industry peers.
NET has a debt to FCF ratio of 7.71. This is a slightly negative value and a sign of low solvency as NET would need 7.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.71, NET is in line with its industry, outperforming 42.31% of the companies in the same industry.
A Debt/Equity ratio of 1.23 is on the high side and indicates that NET has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.23, NET is doing worse than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 14.36 |
ROIC/WACCN/A
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.86 indicates that NET has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.86, NET belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
A Quick Ratio of 2.86 indicates that NET has no problem at all paying its short term obligations.
NET's Quick ratio of 2.86 is amongst the best of the industry. NET outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
NET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.06%, which is quite impressive.
Looking at the last year, NET shows a very strong growth in Revenue. The Revenue has grown by 28.76%.
The Revenue has been growing by 42.22% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)53.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.67%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%26.89%
3.2 Future
The Earnings Per Share is expected to grow by 41.48% on average over the next years. This is a very strong growth
NET is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.60% yearly.
EPS Next Y7.69%
EPS Next 2Y19%
EPS Next 3Y29.23%
EPS Next 5Y41.48%
Revenue Next Year26.04%
Revenue Next 2Y26.21%
Revenue Next 3Y26.78%
Revenue Next 5Y27.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 202.61 indicates a quite expensive valuation of NET.
NET's Price/Earnings ratio is a bit more expensive when compared to the industry. NET is more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. NET is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 188.14 indicates a quite expensive valuation of NET.
60.26% of the companies in the same industry are cheaper than NET, based on the Price/Forward Earnings ratio.
NET is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 202.61 | ||
| Fwd PE | 188.14 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, NET is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 313.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NET's earnings are expected to grow with 29.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)26.33
PEG (5Y)N/A
EPS Next 2Y19%
EPS Next 3Y29.23%
5. Dividend
5.1 Amount
NET does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
151.96
-4.42 (-2.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change-82.54%
Ins Owners0.77%
Ins Owner Change5.82%
Market Cap52.40B
Analysts71.05
Price Target149.96 (-1.32%)
Short Float %2.6%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.37%
Min EPS beat(2)4.03%
Max EPS beat(2)8.71%
EPS beat(4)4
Avg EPS beat(4)17.95%
Min EPS beat(4)4.03%
Max EPS beat(4)37.83%
EPS beat(8)8
Avg EPS beat(8)40.36%
EPS beat(12)12
Avg EPS beat(12)393.01%
EPS beat(16)15
Avg EPS beat(16)309.91%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.4%
Max Revenue beat(2)0.73%
Revenue beat(4)4
Avg Revenue beat(4)0.55%
Min Revenue beat(4)0.4%
Max Revenue beat(4)0.73%
Revenue beat(8)6
Avg Revenue beat(8)0.39%
Revenue beat(12)9
Avg Revenue beat(12)0.58%
Revenue beat(16)13
Avg Revenue beat(16)1.33%
PT rev (1m)50.92%
PT rev (3m)56.78%
EPS NQ rev (1m)-5.85%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)-6.3%
EPS NY rev (3m)-7.22%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 202.61 | ||
| Fwd PE | 188.14 | ||
| P/S | 31.39 | ||
| P/FCF | 313.96 | ||
| P/OCF | 137.75 | ||
| P/B | 50.09 | ||
| P/tB | 62.15 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.75
EY0.49%
EPS(NY)0.81
Fwd EY0.53%
FCF(TTM)0.48
FCFY0.32%
OCF(TTM)1.1
OCFY0.73%
SpS4.84
BVpS3.03
TBVpS2.45
PEG (NY)26.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.39% | ||
| ROE | -7.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 77.32% | ||
| FCFM | 10% |
ROA(3y)-5.51%
ROA(5y)-7.23%
ROE(3y)-20.88%
ROE(5y)-21.83%
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
ROICexcg growth 3YN/A
ROICexcg 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-0.12%
GM growth 5Y-0.15%
F-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 167.17% | ||
| Cap/Sales | 12.79% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z | 14.36 |
F-Score6
WACC10.57%
ROIC/WACCN/A
Cap/Depr(3y)142.08%
Cap/Depr(5y)147.96%
Cap/Sales(3y)13.32%
Cap/Sales(5y)14.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)53.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.67%
EPS Next Y7.69%
EPS Next 2Y19%
EPS Next 3Y29.23%
EPS Next 5Y41.48%
Revenue 1Y (TTM)28.76%
Revenue growth 3Y36.51%
Revenue growth 5Y42.22%
Sales Q2Q%26.89%
Revenue Next Year26.04%
Revenue Next 2Y26.21%
Revenue Next 3Y26.78%
Revenue Next 5Y27.6%
EBIT growth 1Y16.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year100.68%
EBIT Next 3Y51.8%
EBIT Next 5Y51.77%
FCF growth 1Y39.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.54%
OCF growth 3Y80.58%
OCF growth 5YN/A