Roku, Inc. operates a TV streaming platform.
High growth potential with adequate balance sheet.
Share Price & News
How has Roku's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ROKU's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ROKU underperformed the US Entertainment industry which returned 11.6% over the past year.
Return vs Market: ROKU underperformed the US Market which returned 8.9% over the past year.
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
1 month ago | Simply Wall StDoes Roku (NASDAQ:ROKU) Have A Healthy Balance Sheet?
2 months ago | Simply Wall StWhy Roku, Inc. (NASDAQ:ROKU) Could Be Worth Watching
3 months ago | Simply Wall StDoes Roku's (NASDAQ:ROKU) Share Price Gain of 67% Match Its Business Performance?
Is Roku undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ROKU ($102.93) is trading below our estimate of fair value ($111.9)
Significantly Below Fair Value: ROKU is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ROKU is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.
PE vs Market: ROKU is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ROKU's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ROKU is overvalued based on its PB Ratio (18.4x) compared to the US Entertainment industry average (2.7x).
How is Roku forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ROKU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: ROKU is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ROKU's is expected to become profitable in the next 3 years.
Revenue vs Market: ROKU's revenue (27.3% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: ROKU's revenue (27.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ROKU is forecast to be unprofitable in 3 years.
How has Roku performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROKU is currently unprofitable.
Growing Profit Margin: ROKU is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ROKU is unprofitable, and losses have increased over the past 5 years at a rate of -5.9% per year.
Accelerating Growth: Unable to compare ROKU's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ROKU is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (14.6%).
Return on Equity
High ROE: ROKU has a negative Return on Equity (-15.51%), as it is currently unprofitable.
How is Roku's financial position?
Financial Position Analysis
Short Term Liabilities: ROKU's short term assets ($968.6M) exceed its short term liabilities ($372.1M).
Long Term Liabilities: ROKU's short term assets ($968.6M) exceed its long term liabilities ($493.7M).
Debt to Equity History and Analysis
Debt Level: ROKU's debt to equity ratio (24.8%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if ROKU's debt to equity ratio has reduced over the past 5 years.
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: ROKU has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if ROKU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
What is Roku's 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 (53yo)
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: Anthony's total compensation ($USD12.68M) is about average for companies of similar size in the US market ($USD11.52M).
Compensation vs Earnings: Anthony's compensation has increased whilst the company is unprofitable.
|Chief Financial Officer||5yrs||US$3.27m||no data|
|Senior VP||6.42yrs||US$2.04m||0.071% $8.8m|
|Senior VP & GM of Platform Business||1.75yrs||US$4.64m||0.017% $2.1m|
|Senior VP & GM of Account Acquisition||1.33yrs||US$11.95m||no data|
|Senior Vice President of Product Engineering and Operations||5.67yrs||no data||no data|
|Vice President of Investor Relations & Corporate Development||no data||no data||no data|
|Vice President of Communications||no data||no data||no data|
|Chief Marketing Officer||6.83yrs||no data||no data|
|Senior Vice President of Human Resources||2.42yrs||no data||no data|
Experienced Management: ROKU's management team is seasoned and experienced (5.3 years average tenure).
|Independent Director||5.83yrs||US$252.49k||0.043% $5.3m|
|Independent Director||2.83yrs||US$239.99k||0.00088% $109.3k|
|Independent Director||8.08yrs||US$254.99k||0.0052% $647.4k|
|Independent Director||7.33yrs||US$259.99k||0.0027% $338.0k|
|Independent Director||2.08yrs||US$242.49k||0.00062% $77.0k|
Experienced Board: ROKU's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.
Roku, Inc.'s company bio, 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$12.426b
- Shares outstanding: 120.72m
- Website: https://www.roku.com
Number of Employees
- Roku, Inc.
- 150 Winchester Circle
- Los Gatos
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ROKU||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Stock||US||USD||Sep 2017|
|R35||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||Sep 2017|
|0KXI||LSE (London Stock Exchange)||Yes||Class A Common Stock||GB||USD||Sep 2017|
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 sports, music, news, and others. As of December 31, 2018, the company had 27.1 million active accounts. It also provides advertising products, including videos ads, brand sponsorships, and audience marketplace program; and manufactures, sells, and licenses TVs under the Roku TV name. In addition, the company offers streaming media players and accessories under the Roku brand name; and sells branded channel buttons on remote controls. It provides its products and services through retailers and distributors, as well as directly to customers through its Website in the United States, Canada, the United Kingdom, France, the Republic of Ireland, Mexico, and various Latin American countries. The company was founded in 2002 and is headquartered in Los Gatos, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/05 05:02|
|End of Day Share Price||2020/06/04 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.