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ROKU

RokuNasdaqGS:ROKU Stock Report

Market Cap

US$42.9b

7D

1.7%

1Y

72.4%

Updated

27 Sep, 2021

Data

Company Financials +
ROKU fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance3/6
Financial Health6/6
Dividends0/6

ROKU Overview

Roku, Inc., together with its subsidiaries, operates a TV streaming platform.

Roku Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Roku
Historical stock prices
Current Share PriceUS$321.24
52 Week HighUS$181.66
52 Week LowUS$490.76
Beta1.72
1 Month Change-10.02%
3 Month Change-27.07%
1 Year Change72.44%
3 Year Change320.03%
5 Year Changen/a
Change since IPO1,266.98%

Recent News & Updates

Sep 27

Is Roku Stock Overvalued? It Was Last Year, But Not Now

Roku is the Connected TV platform leader in the US. It operates in a rapidly expanding market. It continues to attract advertisers keen on its brand and programmatic advertising reach. Despite its strong execution, its stock has endured a poor year. As a result, it has underperformed the market as it struggles to gain momentum. However, it continues to tap on new opportunities in the SMB space. Its recent partnership with Shopify is a testament to its growing reach in this segment. Given Roku's tremendous opportunities ahead, its stock doesn't look expensive now. Therefore, we are maintaining our Buy rating on Roku stock.

Sep 20

Roku: Content Thesis Continues

Roku continues to explore filmed-entertainment. One of its latest moves is creating new content based on a show that was previously on NBC. This naturally leads to an updated discussion of potential transformative deals the company could strike. Lions Gate Entertainment easily comes to mind. The stock is expensive, but the long-term story is attractive.

Shareholder Returns

ROKUUS EntertainmentUS Market
7D1.7%1.5%2.0%
1Y72.4%25.9%32.8%

Return vs Industry: ROKU exceeded the US Entertainment industry which returned 25.9% over the past year.

Return vs Market: ROKU exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is ROKU's price volatile compared to industry and market?
ROKU volatility
ROKU Beta1.72
Industry Beta1.05
Market Beta1

Stable Share Price: ROKU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ROKU's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20021,925Anthony Woodhttps://www.roku.com

Roku, Inc., together with its subsidiaries, 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 sports, music, news, and others.

Roku Fundamentals Summary

How do Roku's earnings and revenue compare to its market cap?
ROKU fundamental statistics
Market CapUS$42.87b
Earnings (TTM)US$230.02m
Revenue (TTM)US$2.32b

186.4x

P/E Ratio

18.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROKU income statement (TTM)
RevenueUS$2.32b
Cost of RevenueUS$1.14b
Gross ProfitUS$1.19b
ExpensesUS$955.30m
EarningsUS$230.02m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.72
Gross Margin51.07%
Net Profit Margin9.91%
Debt/Equity Ratio3.6%

How did ROKU perform over the long term?

See historical performance and comparison

Valuation

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

186.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROKU ($321.24) is trading above our estimate of fair value ($254.7)

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


Price To Earnings Ratio

PE vs Industry: ROKU is poor value based on its PE Ratio (186.4x) compared to the US Entertainment industry average (28x).

PE vs Market: ROKU is poor value based on its PE Ratio (186.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ROKU is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: ROKU is overvalued based on its PB Ratio (16.7x) compared to the US Entertainment industry average (4.2x).


Future Growth

How is Roku forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

38.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROKU's forecast earnings growth (38.4% per year) is above the savings rate (2%).

Earnings vs Market: ROKU's earnings (38.4% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ROKU's revenue (25.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ROKU's revenue (25.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROKU's Return on Equity is forecast to be low in 3 years time (15.3%).


Past Performance

How has Roku performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROKU has high quality earnings.

Growing Profit Margin: ROKU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ROKU has become profitable over the past 5 years, growing earnings by 31.9% per year.

Accelerating Growth: ROKU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ROKU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (10.8%).


Return on Equity

High ROE: ROKU's Return on Equity (9%) is considered low.


Financial Health

How is Roku's financial position?


Financial Position Analysis

Short Term Liabilities: ROKU's short term assets ($2.8B) exceed its short term liabilities ($611.3M).

Long Term Liabilities: ROKU's short term assets ($2.8B) exceed its long term liabilities ($466.2M).


Debt to Equity History and Analysis

Debt Level: ROKU's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: ROKU's debt to equity ratio has reduced from 32.2% to 3.6% over the past 5 years.

Debt Coverage: ROKU's debt is well covered by operating cash flow (230.6%).

Interest Coverage: ROKU's interest payments on its debt are well covered by EBIT (73.4x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ROKU'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 ROKU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Anthony Wood (55 yo)

18.92yrs

Tenure

US$15,363,568

Compensation

Mr. Anthony J. Wood founded Roku, Inc. in 2002 and has been its Chairman of the Board and Chief Executive Officer since February 2008 and October 2002 respectively. He has been President of Roku Inc. since...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD15.36M) is above average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Anthony's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ROKU's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: ROKU's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ROKU insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Roku, Inc.
  • Ticker: ROKU
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$42.870b
  • Shares outstanding: 133.45m
  • Website: https://www.roku.com

Number of Employees


Location

  • Roku, Inc.
  • 1155 Coleman Avenue
  • San Jose
  • California
  • 95110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:02
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.