CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$131.41|
|52 Week High||US$35.64|
|52 Week Low||US$134.54|
|1 Month Change||12.38%|
|3 Month Change||29.24%|
|1 Year Change||254.21%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||630.06%|
Recent News & Updates
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.
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.
|NET||US IT||US Market|
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.
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
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
|NET fundamental statistics|
Is NET overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NET income statement (TTM)|
|Cost of Revenue||US$123.18m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-0.45|
|Net Profit Margin||-25.62%|
How did NET perform over the long term?See historical performance and comparison
Is Cloudflare undervalued compared to its fair value and its price relative to the market?
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).
How is Cloudflare forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
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%).
How has Cloudflare performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Matthew Prince (46 yo)
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.
Experienced Management: NET's management team is seasoned and experienced (7.3 years average tenure).
Experienced Board: NET's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
Cloudflare, Inc.'s employee growth, exchange listings and data sources
- 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
- Cloudflare, Inc.
- 101 Townsend Street
- San Francisco
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 00:52|
|End of Day Share Price||2021/09/17 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.