Roku, Inc., together with its subsidiaries, operates a TV streaming platform.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$321.24|
|52 Week High||US$181.66|
|52 Week Low||US$490.76|
|1 Month Change||-10.02%|
|3 Month Change||-27.07%|
|1 Year Change||72.44%|
|3 Year Change||320.03%|
|5 Year Change||n/a|
|Change since IPO||1,266.98%|
Recent News & Updates
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.
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.
|ROKU||US Entertainment||US Market|
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.
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
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
|ROKU fundamental statistics|
Is ROKU overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ROKU income statement (TTM)|
|Cost of Revenue||US$1.14b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.72|
|Net Profit Margin||9.91%|
How did ROKU perform over the long term?See historical performance and comparison
Is Roku undervalued compared to its fair value and its price relative to the market?
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).
How is Roku forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
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%).
How has Roku performed over the past 5 years?
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.
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 ($466.2M).
Debt to Equity History and Analysis
Debt Level: ROKU's debt to equity ratio (3.6%) is considered satisfactory.
Reducing Debt: ROKU's debt to equity ratio has reduced from 32.2% to 3.6% over the past 5 years.
Debt Coverage: ROKU's debt is well covered by operating cash flow (230.6%).
Interest Coverage: ROKU's interest payments on its debt are well covered by EBIT (73.4x coverage).
What is Roku current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ROKU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ROKU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ROKU's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ROKU's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ROKU's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anthony Wood (55 yo)
Mr. Anthony J. Wood founded Roku, Inc. in 2002 and has been its Chairman of the Board and Chief Executive Officer since February 2008 and October 2002 respectively. He has been President of Roku Inc. since...
CEO Compensation Analysis
Compensation vs Market: Anthony's total compensation ($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.
Experienced Management: ROKU's management team is seasoned and experienced (6.3 years average tenure).
Experienced Board: ROKU's board of directors are considered experienced (5.6 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.
Roku, Inc.'s employee growth, exchange listings and data sources
- 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
- Roku, Inc.
- 1155 Coleman Avenue
- San Jose
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 23:02|
|End of Day Share Price||2021/09/27 00:00|
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.