About Roku, Inc.
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others, as well as offers digital advertising services. The company also sells streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.
Roku, Inc. (ROKU) is a Communication Services company in the Entertainment industry with a market capitalisation of $23B. The stock trades at 65.93x trailing earnings.
- Sector
- Communication Services
- Industry
- Entertainment
- Market cap
- $23B
- P/E ratio
- 65.93
- Forward P/E
- 39.49
- EPS (TTM)
- $2.35
- Revenue (TTM)
- $5.2B
- Free cash flow
- $836.6M
- Profit margin
- 6.8%
- Beta
- 2.05
- Shares outstanding
- 132.1M
Financial health: Strong8.8/10
6 strengths, 0 concerns. No red flags against these benchmarks.
- Current ratio: 2.75 (Strong, benchmark > 1.5) — Short-term assets cover 2.75x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 13.1% (Watch, benchmark > 15%) — Earns 13.1% on shareholder equity, short of the > 15% mark.
- Gross margin: 45.5% (Strong, benchmark > 40%) — Keeps 45.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 6.8% (Watch, benchmark > 10%) — Turns 6.8% of revenue into profit, short of the > 10% mark.
- Free cash flow: $478.4M (Strong, benchmark positive) — Generated $478.4M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 21.9% (Strong, benchmark > 10%) — Revenue changed 21.9% year on year, comfortably past the > 10% mark.
- Earnings growth: 1442.9% (Strong, benchmark > 10%) — Earnings changed 1442.9% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.60 (Strong, benchmark < 1) — At 0.60, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.