ROKU INC (ROKU)
US77543R1023 - Common Stock
Overall ROKU gets a fundamental rating of 4 out of 10. We evaluated ROKU against 76 industry peers in the Entertainment industry. No worries on liquidiy or solvency for ROKU as it has an excellent financial health rating, but there are worries on the profitability. ROKU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ROKU had negative earnings in the past year.
ROKU had a positive operating cash flow in the past year.
ROKU had negative earnings in 4 of the past 5 years.
Each year in the past 5 years ROKU had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -13.65%, ROKU is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
ROKU has a Return On Equity of -24.06%. This is comparable to the rest of the industry: ROKU outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.65% | ||
| ROE | -24.06% | ||
| 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's Gross Margin of 45.34% is fine compared to the rest of the industry. ROKU outperforms 61.84% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.2%
GM growth 5Y0.44%
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
ROKU has more shares outstanding than it did 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.
2.2 Solvency
ROKU has an Altman-Z score of 3.65. This indicates that ROKU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.65, ROKU belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.65 |
ROIC/WACCN/A
WACC9.03%
2.3 Liquidity
A Current Ratio of 2.58 indicates that ROKU has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.58, ROKU is doing good in the industry, outperforming 77.63% of the companies in the same industry.
ROKU has a Quick Ratio of 2.50. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
ROKU has a better Quick ratio (2.50) than 77.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.53% over the past year.
Looking at the last year, ROKU shows a quite strong growth in Revenue. The Revenue has grown by 15.67% in the last year.
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)16.53%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q74.64%
Revenue 1Y (TTM)15.67%
Revenue growth 3Y25.13%
Revenue growth 5Y36.24%
Revenue growth Q2Q18.96%
3.2 Future
The Earnings Per Share is expected to grow by 16.81% 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 11.18% on average per year.
EPS Next Y59.91%
EPS Next 2Y32.65%
EPS Next 3Y25.49%
EPS Next 5Y16.81%
Revenue Next Year12.6%
Revenue Next 2Y12.55%
Revenue Next 3Y12.41%
Revenue Next 5Y11.18%
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 negative for ROKU. In the last year negative earnings were reported.
Also next year ROKU is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ROKU is valued cheaper than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.75 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ROKU's earnings are expected to grow with 25.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.65%
EPS Next 3Y25.49%
5. Dividend
5.1 Amount
ROKU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROKU INC
NASDAQ:ROKU (5/17/2024, 7:24:04 PM)
After market: 61.45 +0.01 (+0.02%)61.44
+0.19 (+0.31%)
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 Cap8.86B
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)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.65% | ||
| ROE | -24.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.34% | ||
| 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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.58 | ||
| Quick Ratio | 2.5 | ||
| 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)16.53%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y59.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.67%
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