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ROKU INC (ROKU) Stock Fundamental Analysis

NASDAQ:ROKU - Nasdaq - US77543R1023 - Common Stock - Currency: USD

82.58  +0.24 (+0.29%)

After market: 83.5 +0.92 (+1.11%)

Fundamental Rating

4

Taking everything into account, ROKU scores 4 out of 10 in our fundamental rating. ROKU was compared to 71 industry peers in the Entertainment industry. While ROKU has a great health rating, there are worries on its profitability. ROKU is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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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.
ROKU had a positive operating cash flow in each of the past 5 years.
ROKU Yearly Net Income VS EBIT VS OCF VS FCFROKU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M -600M

1.2 Ratios

ROKU has a Return On Assets (-4.00%) which is in line with its industry peers.
ROKU has a Return On Equity of -7.00%. This is comparable to the rest of the industry: ROKU outperforms 57.58% of its industry peers.
Industry RankSector Rank
ROA -4%
ROE -7%
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
ROKU Yearly ROA, ROE, ROICROKU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200

1.3 Margins

ROKU has a Gross Margin (44.54%) which is in line with 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 44.54%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.2%
GM growth 5Y0.44%
ROKU Yearly Profit, Operating, Gross MarginsROKU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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8

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.
ROKU Yearly Shares OutstandingROKU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
ROKU Yearly Total Debt VS Total AssetsROKU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 4.73 indicates that ROKU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.73, ROKU belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.73
ROIC/WACCN/A
WACC9.17%
ROKU Yearly LT Debt VS Equity VS FCFROKU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 2.57 indicates that ROKU has no problem at all paying its short term obligations.
The Current ratio of ROKU (2.57) is better than 81.82% of its industry peers.
A Quick Ratio of 2.41 indicates that ROKU has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.41, ROKU belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.57
Quick Ratio 2.41
ROKU Yearly Current Assets VS Current LiabilitesROKU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 80.55% over the past year.
Looking at the last year, ROKU shows a quite strong growth in Revenue. The Revenue has grown by 15.71% in the last year.
The Revenue has been growing by 36.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)80.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%97.42%
Revenue 1Y (TTM)15.71%
Revenue growth 3Y25.13%
Revenue growth 5Y36.24%
Sales Q2Q%16.47%

3.2 Future

The Earnings Per Share is expected to grow by 18.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.46% on average over the next years. This is quite good.
EPS Next Y78.28%
EPS Next 2Y36.91%
EPS Next 3Y27.47%
EPS Next 5Y18.24%
Revenue Next Year17.51%
Revenue Next 2Y15.53%
Revenue Next 3Y14.6%
Revenue Next 5Y12.46%

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.
ROKU Yearly Revenue VS EstimatesROKU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B
ROKU Yearly EPS VS EstimatesROKU Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 -2 4 -4

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1

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
ROKU Price Earnings VS Forward Price EarningsROKU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROKU is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 80.48
EV/EBITDA N/A
ROKU Per share dataROKU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

4.3 Compensation for Growth

ROKU's earnings are expected to grow with 27.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.91%
EPS Next 3Y27.47%

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0

5. Dividend

5.1 Amount

No dividends for ROKU!.
Industry RankSector Rank
Dividend Yield N/A

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ROKU INC

NASDAQ:ROKU (1/29/2025, 8:00:02 PM)

After market: 83.5 +0.92 (+1.11%)

82.58

+0.24 (+0.29%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-13 2025-02-13/amc
Inst Owners80.49%
Inst Owner Change-0.01%
Ins Owners0.6%
Ins Owner Change7.69%
Market Cap11.99B
Analysts71.79
Price Target82.04 (-0.65%)
Short Float %6.48%
Short Ratio2.01
Dividend
Industry RankSector 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)63.33%
Min EPS beat(2)44.87%
Max EPS beat(2)81.79%
EPS beat(4)3
Avg EPS beat(4)41.99%
Min EPS beat(4)-2.75%
Max EPS beat(4)81.79%
EPS beat(8)6
Avg EPS beat(8)25.72%
EPS beat(12)8
Avg EPS beat(12)25.73%
EPS beat(16)12
Avg EPS beat(16)175.81%
Revenue beat(2)2
Avg Revenue beat(2)1.82%
Min Revenue beat(2)1.21%
Max Revenue beat(2)2.43%
Revenue beat(4)3
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-0.32%
Max Revenue beat(4)2.43%
Revenue beat(8)7
Avg Revenue beat(8)3.19%
Revenue beat(12)9
Avg Revenue beat(12)1.77%
Revenue beat(16)12
Avg Revenue beat(16)2.4%
PT rev (1m)1.16%
PT rev (3m)5.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.22%
EPS NY rev (1m)0%
EPS NY rev (3m)22.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.6%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 3.08
P/FCF 80.48
P/OCF 77.3
P/B 4.87
P/tB 5.29
EV/EBITDA N/A
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.63
Fwd EYN/A
FCF(TTM)1.03
FCFY1.24%
OCF(TTM)1.07
OCFY1.29%
SpS26.83
BVpS16.95
TBVpS15.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4%
ROE -7%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 44.54%
FCFM 3.82%
ROA(3y)-7.33%
ROA(5y)-5.37%
ROE(3y)-13.52%
ROE(5y)-10.09%
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 3Y0.2%
GM growth 5Y0.44%
F-Score6
Asset Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 9.41%
Cap/Sales 0.16%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.57
Quick Ratio 2.41
Altman-Z 4.73
F-Score6
WACC9.17%
ROIC/WACCN/A
Cap/Depr(3y)181.07%
Cap/Depr(5y)261.94%
Cap/Sales(3y)3%
Cap/Sales(5y)4.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)80.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%97.42%
EPS Next Y78.28%
EPS Next 2Y36.91%
EPS Next 3Y27.47%
EPS Next 5Y18.24%
Revenue 1Y (TTM)15.71%
Revenue growth 3Y25.13%
Revenue growth 5Y36.24%
Sales Q2Q%16.47%
Revenue Next Year17.51%
Revenue Next 2Y15.53%
Revenue Next 3Y14.6%
Revenue Next 5Y12.46%
EBIT growth 1Y65.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year128.1%
EBIT Next 3Y37.14%
EBIT Next 5Y24.12%
FCF growth 1Y215.23%
FCF growth 3Y38.08%
FCF growth 5YN/A
OCF growth 1Y838.61%
OCF growth 3Y19.96%
OCF growth 5Y79.06%