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ROKU INC (ROKU) Stock Fundamental Analysis

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

84.42  +0.91 (+1.09%)

Fundamental Rating

4

ROKU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 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 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

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.
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 2024 0 200M -200M -400M -600M

1.2 Ratios

ROKU has a Return On Assets of -3.01%. This is comparable to the rest of the industry: ROKU outperforms 50.00% of its industry peers.
With a decent Return On Equity value of -5.19%, ROKU is doing good in the industry, outperforming 60.61% of the companies in the same industry.
Industry RankSector Rank
ROA -3.01%
ROE -5.19%
ROIC N/A
ROA(3y)-10.31%
ROA(5y)-5.15%
ROE(3y)-18.17%
ROE(5y)-9.41%
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 2024 0 -50 -100 -150 -200

1.3 Margins

ROKU's Gross Margin of 43.90% is in line compared to the rest of the industry. ROKU outperforms 45.45% of its industry peers.
ROKU's Gross Margin has been stable in the last couple of years.
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 43.9%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.84%
GM growth 5Y0.02%
ROKU Yearly Profit, Operating, Gross MarginsROKU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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
Compared to 5 years ago, ROKU has more shares outstanding
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 2024 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 2024 1B 2B 3B 4B

2.2 Solvency

An Altman-Z score of 4.92 indicates that ROKU is not in any danger for bankruptcy at the moment.
ROKU has a Altman-Z score of 4.92. This is amongst the best in the industry. ROKU outperforms 90.91% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.92
ROIC/WACCN/A
WACC8.93%
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 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 2.62 indicates that ROKU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.62, ROKU belongs to the top of the industry, outperforming 83.33% 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 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.62
Quick Ratio 2.5
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 2024 1B 2B 3B

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6

3. Growth

3.1 Past

ROKU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.27%, which is quite impressive.
ROKU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.03%.
Measured over the past years, ROKU shows a very strong growth in Revenue. The Revenue has been growing by 29.51% on average per year.
EPS 1Y (TTM)82.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%56.36%
Revenue 1Y (TTM)18.03%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%22%

3.2 Future

The Earnings Per Share is expected to grow by 35.16% on average over the next years. This is a very strong growth
Based on estimates for the next years, ROKU will show a quite strong growth in Revenue. The Revenue will grow by 10.03% on average per year.
EPS Next Y61.68%
EPS Next 2Y60.12%
EPS Next 3Y58.51%
EPS Next 5Y35.16%
Revenue Next Year13.93%
Revenue Next 2Y13.05%
Revenue Next 3Y12.31%
Revenue Next 5Y10.03%

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.
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

The Price/Earnings Ratio is negative for ROKU. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ROKU. No positive earnings are expected for the next year.
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 -100 -200

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 57.55
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 58.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.12%
EPS Next 3Y58.51%

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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 (3/3/2025, 12:16:50 PM)

84.42

+0.91 (+1.09%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)04-23 2025-04-23/amc
Inst Owners84.57%
Inst Owner Change-1.27%
Ins Owners0.61%
Ins Owner Change8.38%
Market Cap12.26B
Analysts71.5
Price Target101.72 (20.49%)
Short Float %6.54%
Short Ratio2.4
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)61.68%
Min EPS beat(2)41.56%
Max EPS beat(2)81.79%
EPS beat(4)4
Avg EPS beat(4)53.07%
Min EPS beat(4)41.56%
Max EPS beat(4)81.79%
EPS beat(8)6
Avg EPS beat(8)30.47%
EPS beat(12)8
Avg EPS beat(12)21.71%
EPS beat(16)12
Avg EPS beat(16)115.93%
Revenue beat(2)2
Avg Revenue beat(2)2.5%
Min Revenue beat(2)2.43%
Max Revenue beat(2)2.57%
Revenue beat(4)4
Avg Revenue beat(4)2.01%
Min Revenue beat(4)1.21%
Max Revenue beat(4)2.57%
Revenue beat(8)7
Avg Revenue beat(8)2.76%
Revenue beat(12)10
Avg Revenue beat(12)2.41%
Revenue beat(16)12
Avg Revenue beat(16)2.38%
PT rev (1m)22.49%
PT rev (3m)24.71%
EPS NQ rev (1m)3.05%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)47.85%
EPS NY rev (3m)46.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 2.98
P/FCF 57.55
P/OCF 56.22
P/B 4.92
P/tB 5.32
EV/EBITDA N/A
EPS(TTM)-0.89
EYN/A
EPS(NY)-0.34
Fwd EYN/A
FCF(TTM)1.47
FCFY1.74%
OCF(TTM)1.5
OCFY1.78%
SpS28.33
BVpS17.17
TBVpS15.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.01%
ROE -5.19%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 43.9%
FCFM 5.18%
ROA(3y)-10.31%
ROA(5y)-5.15%
ROE(3y)-18.17%
ROE(5y)-9.41%
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-4.84%
GM growth 5Y0.02%
F-Score6
Asset Turnover0.96
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 8.07%
Cap/Sales 0.12%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.62
Quick Ratio 2.5
Altman-Z 4.92
F-Score6
WACC8.93%
ROIC/WACCN/A
Cap/Depr(3y)152.46%
Cap/Depr(5y)155.78%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)82.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%56.36%
EPS Next Y61.68%
EPS Next 2Y60.12%
EPS Next 3Y58.51%
EPS Next 5Y35.16%
Revenue 1Y (TTM)18.03%
Revenue growth 3Y14.16%
Revenue growth 5Y29.51%
Sales Q2Q%22%
Revenue Next Year13.93%
Revenue Next 2Y13.05%
Revenue Next 3Y12.31%
Revenue Next 5Y10.03%
EBIT growth 1Y57.11%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year210.57%
EBIT Next 3Y64.51%
EBIT Next 5Y39.48%
FCF growth 1Y22.94%
FCF growth 3Y4.23%
FCF growth 5YN/A
OCF growth 1Y-14.78%
OCF growth 3Y-1.49%
OCF growth 5Y73.93%