DB:R35

Stock Analysis Report

Executive Summary

Roku, Inc. operates a TV streaming platform.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Roku's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.2%

R35

2.0%

DE Consumer Durables

1.7%

DE Market


1 Year Return

152.4%

R35

-0.9%

DE Consumer Durables

7.2%

DE Market

Return vs Industry: R35 exceeded the German Consumer Durables industry which returned -0.9% over the past year.

Return vs Market: R35 exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

R35IndustryMarket
7 Day-1.2%2.0%1.7%
30 Day22.9%1.6%2.4%
90 Day25.6%-6.0%2.3%
1 Year152.4%152.4%1.4%-0.9%10.6%7.2%
3 Yearn/a-5.8%-13.7%18.4%8.1%
5 Yearn/a29.5%12.0%42.3%22.9%

Price Volatility Vs. Market

How volatile is Roku's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Roku undervalued compared to its fair value and its price relative to the market?

32.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: R35 (€117.32) is trading above our estimate of fair value (€102.79)

Significantly Below Fair Value: R35 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: R35 is unprofitable, so we can't compare its PE Ratio to the Consumer Durables industry average.

PE vs Market: R35 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate R35's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: R35 is overvalued based on its PB Ratio (32.5x) compared to the DE Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Roku forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

76.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R35 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: R35 is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: R35's loss is forecast to worsen by 0% next year.

Revenue vs Market: R35's revenue (27% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: R35's revenue (27% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: R35's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Roku performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: R35 is unprofitable, but has reduced losses over the past 5 years at a rate of 25.6% per year.

Accelerating Growth: Unable to compare R35's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: R35 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (-21.1%).


Return on Equity

High ROE: R35 has a negative Return on Equity (-4.74%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: R35 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: R35 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Roku's financial position?


Financial Position Analysis

Short Term Liabilities: R35's short term assets ($650.0M) exceeds its short term liabilities ($238.3M)

Long Term Liabilities: R35's short term assets (650.0M) exceeds its long term liabilities (121.9M)


Debt to Equity History and Analysis

Debt Level: R35 is debt free.

Reducing Debt: R35 had no debt 5 years ago.


Balance Sheet

Inventory Level: R35 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if R35's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable R35 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: R35 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 31.5% per year.


Next Steps

Dividend

What is Roku's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate R35's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate R35's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if R35's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if R35's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of R35's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Roku's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Anthony Wood (53yo)

17yrs

Tenure

US$8,336,661

Compensation

Mr. Anthony J. Wood Founded Roku, Inc. in 2002 and serves as its Chairman of the Board and Chief Executive Officer since February 2008 and October 2002 respectively. He serves as President of Roku Inc. sin ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Anthony's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Anthony's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: R35's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

55yo

Average Age

Experienced Board: R35's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$820,02919 Mar 19
Fiftysix Investments, Llc
EntityCompany
Shares15,000
Max PriceUS$54.67

Ownership Breakdown


Management Team

  • Steve Kay (58yo)

    Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$3.01m
  • Anthony Wood (53yo)

    Founder

    • Tenure: 17yrs
    • Compensation: US$8.34m
  • Matthew Anderson (53yo)

    Chief Marketing Officer

    • Tenure: 6.2yrs
  • James Samford

    Vice President of Investor Relations & Corporate Development

    • Tenure: 0yrs
  • Scott Rosenberg (45yo)

    Senior VP & GM of Platform Business

    • Tenure: 1.1yrs
    • Compensation: US$7.43m
  • Mark Goodwin

    Senior Vice President of Enterprise Engineering & Program Management

    • Tenure: 3.8yrs
  • Scott De Haas

    Senior Vice President of Product Engineering and Operations

    • Tenure: 5yrs
  • Steve Louden (47yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: US$4.30m
  • Troy Fenner

    Senior Vice President of Human Resources

    • Tenure: 1.8yrs
  • Tricia Mifsud

    Vice President of Communications

    • Tenure: 0yrs

Board Members

  • Ray Rothrock (62yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$213.16k
  • Neil Hunt (57yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$41.00k
  • Alan Henricks (68yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$215.76k
  • Anthony Wood (53yo)

    Founder

    • Tenure: 17yrs
    • Compensation: US$8.34m
  • Ravi Ahuja (48yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$213.76k
  • Jeff Hastings (55yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$200.55k
  • Mai Fyfield (50yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$347.25k

Company Information

Roku, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Roku, Inc.
  • Ticker: R35
  • Exchange: DB
  • Founded: 2002
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$15.463b
  • Listing Market Cap: US$13.879b
  • Shares outstanding: 116.23m
  • Website: https://www.roku.com

Number of Employees


Location

  • Roku, Inc.
  • 150 Winchester Circle
  • Los Gatos
  • California
  • 95032
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROKUNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDSep 2017
R35DB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 2017
0KXILSE (London Stock Exchange)YesClass A Common StockGBUSDSep 2017

Biography

Roku, Inc. operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live spor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:53
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.