Roku, Inc.
Roku, Inc. Fundamental Analysis
Roku, Inc. (R35.F) shows weak financial fundamentals with a PE ratio of 150.08, profit margin of 1.87%, and ROE of 3.40%. The company generates $4.7B in annual revenue with strong year-over-year growth of 18.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze R35.F's fundamental strength across five key dimensions:
Efficiency Score
WeakR35.F struggles to generate sufficient returns from assets.
Valuation Score
ModerateR35.F shows balanced valuation metrics.
Growth Score
ExcellentR35.F delivers strong and consistent growth momentum.
Financial Health Score
ExcellentR35.F maintains a strong and stable balance sheet.
Profitability Score
WeakR35.F struggles to sustain strong margins.
Key Financial Metrics
Is R35.F Expensive or Cheap?
P/E Ratio
R35.F trades at 150.08 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, R35.F's PEG of 0.32 indicates potential undervaluation.
Price to Book
The market values Roku, Inc. at 4.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 41.40 times EBITDA. This signals the market has high growth expectations.
How Well Does R35.F Make Money?
Net Profit Margin
For every $100 in sales, Roku, Inc. keeps $1.87 as profit after all expenses.
Operating Margin
Core operations generate -0.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.40 in profit for every $100 of shareholder equity.
ROA
Roku, Inc. generates $1.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Roku, Inc. generates limited operating cash flow of $432.15M, signaling weaker underlying cash strength.
Free Cash Flow
Roku, Inc. produces free cash flow of $426.89M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.90 in free cash annually.
FCF Yield
R35.F converts 3.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
150.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How R35.F Stacks Against Its Sector Peers
| Metric | R35.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 150.08 | 22.68 | Worse (Expensive) |
| ROE | 3.40% | 1066.00% | Weak |
| Net Margin | 1.87% | -61526.00% (disorted) | Weak |
| Debt/Equity | 0.36 | 1.33 | Strong (Low Leverage) |
| Current Ratio | 2.75 | 1.62 | Strong Liquidity |
| ROA | 1.99% | -606759.00% (disorted) | Weak |
R35.F outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Roku, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
190.23%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-71.97%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
1167.26%
Industry Style: Growth, Technology, Streaming
High Growth