NET

CloudflareNYSE:NET Stock Report

Market Cap

US$41.1b

7D

3.1%

1Y

254.2%

Updated

18 Sep, 2021

Data

Company Financials +
NET fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health3/6
Dividends0/6

NET Overview

CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide.

Cloudflare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cloudflare
Historical stock prices
Current Share PriceUS$131.41
52 Week HighUS$35.64
52 Week LowUS$134.54
Beta0.028
1 Month Change12.38%
3 Month Change29.24%
1 Year Change254.21%
3 Year Changen/a
5 Year Changen/a
Change since IPO630.06%

Recent News & Updates

Sep 05
As Cyber-Security Gains in Importance, Cloudflare, Inc. (NYSE:NET) is Attracting Institutional Interest

As Cyber-Security Gains in Importance, Cloudflare, Inc. (NYSE:NET) is Attracting Institutional Interest

After an uneventful start of the year, Cloudflare, Inc. (NYSE:NET) proved to be one of the biggest tech winners, rising as high as 70% year-to-date. Yet, it doesn't come as a surprise, as cyber security gains the interest of both the private and public sectors. This article will examine the latest developments and look into the current shareholder structure.

Aug 29

Where Will Cloudflare Stock Be In 5 Years? Examining Opportunities, Metrics And Valuation

Cloudflare is an exciting company in a dynamic sector with a high valuation, lots of risk and massive potential. The secular possibilities are tremendous and the company has shown great foresight in increasing their addressable market and growing the large customer base. I parsed significant SaaS metrics to compare to peers and look forward towards potential profitability using estimated growth rates and management estimates. The stock has already rewarded shareholders handsomely, while stretching the valuation, but there is a path for further "NET" gains.

Shareholder Returns

NETUS ITUS Market
7D3.1%-0.9%-0.6%
1Y254.2%25.7%33.8%

Return vs Industry: NET exceeded the US IT industry which returned 26.4% over the past year.

Return vs Market: NET exceeded the US Market which returned 33.6% over the past year.

Price Volatility

Is NET's price volatile compared to industry and market?
NET volatility
NET Beta0.028
Industry Beta1.18
Market Beta1

Stable Share Price: NET is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NET's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20092,050Matthew Princehttps://www.cloudflare.com

CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and Internet of Things (IoT) devices. Its security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiting products.

Cloudflare Fundamentals Summary

How do Cloudflare's earnings and revenue compare to its market cap?
NET fundamental statistics
Market CapUS$41.06b
Earnings (TTM)-US$135.96m
Revenue (TTM)US$530.57m

77.4x

P/S Ratio

-302.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NET income statement (TTM)
RevenueUS$530.57m
Cost of RevenueUS$123.18m
Gross ProfitUS$407.39m
ExpensesUS$543.35m
Earnings-US$135.96m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.45
Gross Margin76.78%
Net Profit Margin-25.62%
Debt/Equity Ratio50.1%

How did NET perform over the long term?

See historical performance and comparison

Valuation

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

51.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NET ($131.41) is trading above our estimate of fair value ($73.99)

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


Price To Earnings Ratio

PE vs Industry: NET is unprofitable, so we can't compare its PE Ratio to the US IT industry average.

PE vs Market: NET 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 NET's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NET is overvalued based on its PB Ratio (51.3x) compared to the US IT industry average (5.4x).


Future Growth

How is Cloudflare forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NET is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NET is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NET is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NET's revenue (29.3% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: NET's revenue (29.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NET's Return on Equity is forecast to be low in 3 years time (4.4%).


Past Performance

How has Cloudflare performed over the past 5 years?

-29.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NET is currently unprofitable.

Growing Profit Margin: NET is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NET is unprofitable, and losses have increased over the past 5 years at a rate of 29.9% per year.

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

Earnings vs Industry: NET is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (35.5%).


Return on Equity

High ROE: NET has a negative Return on Equity (-16.97%), as it is currently unprofitable.


Financial Health

How is Cloudflare's financial position?


Financial Position Analysis

Short Term Liabilities: NET's short term assets ($1.1B) exceed its short term liabilities ($200.5M).

Long Term Liabilities: NET's short term assets ($1.1B) exceed its long term liabilities ($444.4M).


Debt to Equity History and Analysis

Debt Level: NET's debt to equity ratio (50.1%) is considered high.

Reducing Debt: Insufficient data to determine if NET'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: NET has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NET has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NET'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 NET's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NET'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 NET'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?

7.3yrs

Average management tenure


CEO

Matthew Prince (46 yo)

12.17yrs

Tenure

US$434,722

Compensation

Mr. Matthew Prince co-founded CloudFlare, Inc. in 2009 and serves as its Chief Executive Officer and serves as its Chair of Board of Directors since July 2009 and its Director since 2009. He also co-founde...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD434.72K) is below average for companies of similar size in the US market ($USD11.33M).

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


Leadership Team

Experienced Management: NET's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: NET's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 2.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cloudflare, Inc.
  • Ticker: NET
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$41.056b
  • Shares outstanding: 312.43m
  • Website: https://www.cloudflare.com

Number of Employees


Location

  • Cloudflare, Inc.
  • 101 Townsend Street
  • San Francisco
  • California
  • 94107
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:52
End of Day Share Price2021/09/17 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.