CloudFlare, Inc. operates a cloud platform that delivers a range of network services to businesses worldwide. More Details
Mediocre balance sheet with limited growth.
Share Price & News
How has Cloudflare's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NET has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NET exceeded the US Software industry which returned 52.6% over the past year.
Return vs Market: NET exceeded the US Market which returned 15.8% over the past year.
Price Volatility Vs. Market
How volatile is Cloudflare's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StIs Cloudflare (NYSE:NET) A Risky Investment?
1 month ago | Simply Wall StThis Insider Has Just Sold Shares In Cloudflare, Inc. (NYSE:NET)
2 months ago | Simply Wall StWhat You Need To Know About Cloudflare, Inc.'s (NYSE:NET) Investor Composition
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 ($40.67) is trading above our estimate of fair value ($23.18)
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 Software 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 (14.9x) compared to the US Software industry average (7x).
How is Cloudflare forecast to perform in the next 1 to 3 years based on estimates from 15 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 (26.2% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: NET's revenue (26.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NET is forecast to be unprofitable in 3 years.
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 42.3% 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 Software industry (13.9%).
Return on Equity
High ROE: NET has a negative Return on Equity (-15.3%), 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 ($120.7M).
Long Term Liabilities: NET's short term assets ($1.1B) exceed its long term liabilities ($407.7M).
Debt to Equity History and Analysis
Debt Level: NET's debt to equity ratio (43.8%) 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 (45 yo)
Mr. Matthew Prince co-founded CloudFlare, Inc. in 2009 and has served as its Chief Executive Officer and Chair of Board of Directors since July 2009 and has been its Director since 2009. He also co-founded ...
CEO Compensation Analysis
Compensation vs Market: Matthew's total compensation ($USD400.00K) is below average for companies of similar size in the US market ($USD11.35M).
Compensation vs Earnings: Matthew's compensation has been consistent with company performance over the past year.
|Chief Financial Officer||3.25yrs||US$650.00k||0.17% |
|General Counsel & Secretary||4.08yrs||US$3.19m||0.13% |
|Chief Technology Officer||no data||no data||no data|
|Head of Investor Relations||no data||no data||no data|
|Head of Governance Risk & Compliance||no data||no data||no data|
|Sales Manager||no data||no data||no data|
|Head of APAC||no data||no data||no data|
|Head of Product Strategy||8.42yrs||no data||no data|
|Head of Product Strategy Operations||no data||no data||no data|
|Head of Trust & Safety||no data||no data||no data|
Experienced Management: NET's management team is seasoned and experienced (8.4 years average tenure).
|Lead Independent Director||no data||US$10.76k||0.071% |
|Independent Director||10.83yrs||US$14.20k||0.60% |
|Independent Director||1.75yrs||US$14.95k||0% |
|Independent Director||1.75yrs||US$211.95k||0.038% |
|Independent Director||1.08yrs||US$1.36m||0.0093% |
|Independent Director||1.08yrs||US$1.44m||0.0056% |
Experienced Board: NET's board of directors are not considered experienced ( 1.8 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: NET 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 4.2%.
Cloudflare, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Cloudflare, Inc.
- Ticker: NET
- Exchange: NYSE
- Founded: 2009
- Industry: Systems Software
- Sector: Software
- Market Cap: US$12.434b
- Shares outstanding: 305.73m
- Website: https://www.cloudflare.com
Number of Employees
- Cloudflare, Inc.
- 101 Townsend Street
- San Francisco
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NET||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||Sep 2019|
|8CF||BST (Boerse-Stuttgart)||Yes||Class A Common Stock||DE||EUR||Sep 2019|
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 combinati ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/09/29 23:34|
|End of Day Share Price||2020/09/29 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.