ROKU INC (ROKU)
US77543R1023 - Common Stock
ROKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 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.
In the past year ROKU had a positive cash flow from operations.
In the past 5 years ROKU reported 4 times negative net income.
ROKU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROKU's Return On Assets of -4.00% is in line compared to the rest of the industry. ROKU outperforms 47.89% of its industry peers.
ROKU's Return On Equity of -7.00% is in line compared to the rest of the industry. ROKU outperforms 56.34% 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
ROKU has a Gross Margin of 44.54%. This is comparable to the rest of the industry: ROKU outperforms 49.30% 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 | 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
An Altman-Z score of 4.59 indicates that ROKU is not in any danger for bankruptcy at the moment.
The Altman-Z score of ROKU (4.59) is better than 88.73% of its industry peers.
ROKU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.59 |
ROIC/WACCN/A
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.57 indicates that ROKU has no problem at all paying 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.
ROKU has a Quick Ratio of 2.41. This indicates that ROKU is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ROKU (2.41) is better than 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.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.71%.
ROKU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.24% yearly.
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
ROKU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.24% yearly.
Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 12.26% on average per year.
EPS Next Y78.28%
EPS Next 2Y36.91%
EPS Next 3Y27.47%
EPS Next 5Y18.24%
Revenue Next Year17.46%
Revenue Next 2Y15.49%
Revenue Next 3Y14.58%
Revenue Next 5Y12.26%
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
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
ROKU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.46 | ||
| EV/EBITDA | N/A |
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%
5. Dividend
5.1 Amount
ROKU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROKU INC
NASDAQ:ROKU (12/26/2024, 7:21:50 PM)
After market: 79.56 +0.08 (+0.1%)79.48
-0.08 (-0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners80.49%
Inst Owner Change5.01%
Ins Owners0.6%
Ins Owner Change7.21%
Market Cap11.54B
Analysts72.31
Price Target81.09 (2.03%)
Short Float %8.07%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)4.55%
PT rev (3m)13.76%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-12.22%
EPS NY rev (1m)0.24%
EPS NY rev (3m)22.76%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)3.74%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.96 | ||
| P/FCF | 77.46 | ||
| P/OCF | 74.4 | ||
| P/B | 4.69 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.2
EYN/A
EPS(NY)-0.63
Fwd EYN/A
FCF(TTM)1.03
FCFY1.29%
OCF(TTM)1.07
OCFY1.34%
SpS26.83
BVpS16.95
TBVpS15.62
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.59 |
F-Score6
WACC9.2%
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 Year17.46%
Revenue Next 2Y15.49%
Revenue Next 3Y14.58%
Revenue Next 5Y12.26%
EBIT growth 1Y65.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year128.06%
EBIT Next 3Y37.44%
EBIT Next 5Y24%
FCF growth 1Y215.23%
FCF growth 3Y38.08%
FCF growth 5YN/A
OCF growth 1Y838.61%
OCF growth 3Y19.96%
OCF growth 5Y79.06%