ROKU INC (ROKU)
US77543R1023 - Common Stock
Taking everything into account, ROKU scores 4 out of 10 in our fundamental rating. ROKU was compared to 72 industry peers in the Entertainment industry. While ROKU has a great health rating, there are worries on its profitability. While showing a medium growth rate, ROKU is valued expensive at the moment.
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.
ROKU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROKU has a Return On Assets (-4.00%) which is comparable to the rest of the industry.
ROKU's Return On Equity of -7.00% is in line compared to the rest of the industry. ROKU outperforms 57.75% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
Looking at the Gross Margin, with a value of 44.54%, ROKU is in line with its industry, outperforming 50.70% of the companies in the same industry.
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 | 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%
2. Health
2.1 Basic Checks
ROKU does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ROKU has been increased compared to 1 year ago.
The number of shares outstanding for ROKU has been increased compared to 5 years ago.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ROKU has an Altman-Z score of 4.08. This indicates that ROKU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.08, ROKU belongs to the top of the industry, outperforming 90.14% 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 | 4.08 |
ROIC/WACCN/A
WACC9%
2.3 Liquidity
ROKU has a Current Ratio of 2.57. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
ROKU has a Current ratio of 2.57. This is in the better half of the industry: ROKU outperforms 78.87% of its industry peers.
A Quick Ratio of 2.41 indicates that ROKU has no problem at all paying its short term obligations.
ROKU has a Quick ratio of 2.41. This is in the better half of the industry: ROKU outperforms 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.41 |
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
Based on estimates for the next years, ROKU will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.81% on average per year.
ROKU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.18% yearly.
EPS Next Y78.23%
EPS Next 2Y36.81%
EPS Next 3Y27.44%
EPS Next 5Y16.81%
Revenue Next Year17.4%
Revenue Next 2Y15.48%
Revenue Next 3Y14.59%
Revenue Next 5Y11.18%
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
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 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 a bit cheaper than the industry average as 60.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as ROKU's earnings are expected to grow with 27.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.81%
EPS Next 3Y27.44%
5. Dividend
5.1 Amount
No dividends for ROKU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROKU INC
NASDAQ:ROKU (11/20/2024, 8:00:02 PM)
Premarket: 68.75 +0.04 (+0.06%)68.71
-4.9 (-6.66%)
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 Cap9.98B
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 | 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 | -4% | ||
| ROE | -7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.54% | ||
| 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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.41 | ||
| 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)80.55%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y78.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.71%
Revenue growth 3Y25.13%
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