NasdaqGS:ROKU

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.


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

Stable Share Price: ROKU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ROKU's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

19.9%

ROKU

4.7%

US Entertainment

2.8%

US Market


1 Year Return

72.0%

ROKU

35.3%

US Entertainment

19.7%

US Market

Return vs Industry: ROKU exceeded the US Entertainment industry which returned 36.5% over the past year.

Return vs Market: ROKU exceeded the US Market which returned 20.4% over the past year.


Shareholder returns

ROKUIndustryMarket
7 Day19.9%4.7%2.8%
30 Day27.3%8.2%8.0%
90 Day72.7%2.9%6.8%
1 Year72.0%72.0%35.8%35.3%22.4%19.7%
3 Year519.7%519.7%82.4%78.5%47.3%37.5%
5 Yearn/a101.4%92.3%93.6%72.3%

Long-Term 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

Valuation

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

29.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ROKU ($278.06) is trading above our estimate of fair value ($111.23)

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


Price To Earnings Ratio

PE vs Industry: ROKU is unprofitable, so we can't compare its PE Ratio to the US 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 (29x) compared to the US Entertainment industry average (3.8x).


Next Steps

Future Growth

How is Roku forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

70.9%

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 (28.9% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: ROKU's revenue (28.9% 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.


Next Steps

Past Performance

How has Roku performed over the past 5 years?

-22.8%

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 22.8% 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 (33.7%).


Return on Equity

High ROE: ROKU has a negative Return on Equity (-8.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is Roku's financial position?


Financial Position Analysis

Short Term Liabilities: ROKU's short term assets ($1.5B) exceed its short term liabilities ($465.7M).

Long Term Liabilities: ROKU's short term assets ($1.5B) exceed its long term liabilities ($422.0M).


Debt to Equity History and Analysis

Debt Level: ROKU's debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ROKU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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.


Next Steps

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?

6.1yrs

Average management tenure


CEO

Anthony Wood (54 yo)

18.08yrs

Tenure

US$12,675,524

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: Anthony's total compensation ($USD12.68M) is about average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Wood
Founder18.08yrsUS$12.68m13.99%
$ 4.8b
Steve Louden
Chief Financial Officer5.42yrsUS$3.27m0%
$ 0
Stephen Kay
Senior VP6.83yrsUS$2.04m0.061%
$ 21.1m
Scott Rosenberg
Senior VP & GM of Platform Business2.17yrsUS$4.64m0.016%
$ 5.5m
Mustafa Ozgen
Senior VP & GM of Account Acquisition1.75yrsUS$11.95mno data
Scott De Haas
Senior Vice President of Product Engineering and Operations6.08yrsno datano data
James Samford
Vice President of Investor Relations & Corporate Developmentno datano datano data
Tricia Mifsud
Vice President of Communicationsno datano datano data
Matthew Anderson
Chief Marketing Officer7.25yrsno datano data
Troy Fenner
Senior Vice President of Human Resources2.83yrsno datano data
Steve Shannon
GM and Senior VP of Content & Services8.08yrsno datano data
Ilya Asnis
Senior Vice President of OSno datano datano data

6.1yrs

Average Tenure

54yo

Average Age

Experienced Management: ROKU's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Wood
Founder18.08yrsUS$12.68m13.99%
$ 4.8b
Ray Rothrock
Independent Director6.25yrsUS$252.49k0.029%
$ 9.9m
Neil Hunt
Independent Director3.25yrsUS$239.99k0.00084%
$ 291.1k
Alan Henricks
Independent Director8.5yrsUS$254.99k0.0042%
$ 1.4m
Ravi Ahuja
Independent Director7.75yrsUS$259.99k0.00084%
$ 291.1k
Jeffrey Hastings
Director9.25yrsUS$232.49k0.00084%
$ 291.1k
Rowenna Fyfield
Independent Director2.5yrsUS$242.49k0%
$ 0

7.8yrs

Average Tenure

56yo

Average Age

Experienced Board: ROKU's board of directors are considered experienced (7.8 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

Company Information

Roku, Inc.'s company bio, 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$34.654b
  • Shares outstanding: 126.93m
  • 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
ROKU *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNSep 2017
R1KU34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 20 REPR 1 COM NPVBRBRLOct 2020

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 23:40
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.