Roku, Inc. Class A Common Stock (ROKU) Stock Analysis
P/E 114.42×· 5Y range 49.88–197.25×· 72th percentile of history
Sector: Communication Services · Industry: Cable & Other Pay Television Services
AnalystsHold36 analystsStrengths
- ✓Altman Z 8.7 — safe-zone balance sheet
- ✓Revenue CAGR 14.4% — durable top-line growth
Risks
- ⚠SBC 6.8% of revenue — real dilution cost
- ⚠7 loss-making years in recent history
- ⚠Interest coverage -93.7× — thin debt cushion
What's happening with ROKU
Price History
5-Year Weekly Candlestick Chart
Profile
Strong earnings quality and financial health; valuation, profitability and growth lag behind.
How is each axis scored?
- Valuation40/100 · Weak
- P/E vs own history (72th pct)5/25
- FCF yield (2.4%)5/25
- P/S (4.6x)20/25
- EV/EBIT (n/a)10/25
- Growth45/100 · Weak
- Revenue CAGR (14.4%)20/25
- Net income CAGR (-22.3%)0/25
- EPS CAGR 5Y (-23.5%)0/25
- Fwd implied growth (160.0%)25/25
- Profitability41/100 · Weak
- ROIC (28.2%)25/25
- ROE (7.5%)5/25
- Net margin (4.1%)6/25
- Operating margin (2.1%)5/25
- Financial Health75/100 · Strong
- Altman Z (8.68)25/25
- Current ratio (2.91)25/25
- Interest coverage (-93.7x)0/25
- Net cash / debt (Net cash)25/25
- Quality77/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.83)25/25
- FCF conversion (267%)25/25
- Margin stability (σ 9.7%)12/25
About Roku, Inc. Class A Common Stock
Roku enables consumers to stream television programming. Show more
Roku facilitated 145 billion streaming hours in 2025 and reached more than half of US broadband households. It is the top streaming operating system in the US, reaching more than half of broadband households, according to the company. Roku's OS is built into streaming devices and televisions that Roku sells, as well as on connected televisions from other manufacturers that license Roku's name and software. Roku also operates The Roku Channel, a free, ad-supported streaming television platform that offers a mix of on-demand and live television programming. Roku generates revenue primarily from device sales, licensing, and advertising, and it also receives fees from subscription streaming platforms that sell subscriptions through Roku.
Headquarters: SAN JOSE, CA · Employees: 3,600 · Website ↗
Insider Transactions
Recent SEC Form 4 filings
- SellOpen market sale · filed 2026-09-16-7000 sh2026-09-15
- BuyGift · filed 2026-09-16+24.1K sh2026-09-14
- SellGift · filed 2026-09-16-24109 sh2026-09-14
- SellOption exercise · filed 2026-09-09-10269 sh2026-09-04
- SellOpen market sale · filed 2026-09-09-1426 sh2026-09-04
+3 more recent filings
Key Metrics
Financial snapshot — pillar inputs plus per-share and market context
Valuation
40D+P/E (TTM)114.4xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 49.9x–197.2x · 72nd pct
P/FCF32.0xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield2.4%C
Grade C: LowTTM FCF / Market Cap — vs own 5Y history: -6.1%–5.7% · 63rd pct
P/S (TTM)4.57xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.7x–19.5x · 85th pct
EV/EBITDA60.5xD
Grade D: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales4.0xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E44.0xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio8.49xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
41D+ROIC28.2%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE7.5%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA8.0%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin4.1%D
Grade D: LowNet Income / Revenue
Operating Margin2.1%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin44.2%C
Grade C: AverageGross Profit / Revenue
FCF Margin10.8%C
Grade C: AverageFCF / Revenue
True FCF Margin4.0%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Financial Health
75B+Altman Z-Score8.68A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.91xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.58xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage-93.7xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity0.00xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Growth
45D+Revenue CAGR14.4%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-22.3%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-23.5%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth160.0%A
Grade A: HighImplied 1Y EPS growth from forward P/E vs our TTM EPS. Sparse — only where forward estimates exist
Dilution (5Y)+7.6%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income167.4%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue6.8%C
Grade C: MedTTM stock-based comp / TTM Revenue
Quality
7/9 Loss Years77B+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.83A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion266.8%A
Grade A: StrongFCF / Net Income
Margin Stability9.7%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue0.1%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.07xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
More metrics — Per Share, Balance Sheet, MarketHide additional metrics
Per Share
EPS (TTM)$1.33
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$15.67
Cash & short-term investments per share (Finnhub)
Book Value / Share$17.98
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$2.38B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$2.67B
Shareholders' equity (book value)
Asset / Liability2.59xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$22.67B
Current Market Capitalization
Beta2.16D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
Takeaway
Company is effectively debt-free after netting cash. · Current P/E of 114.4x sits at the 72nd percentile of its historical range.
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Sep 26, 2026
Key Insights: Roku, Inc. Class A Common Stock (ROKU)
Piotroski F-Score of 6/9 indicates mixed fundamentals for Roku, Inc. Class A Common Stock. Altman Z-Score of 8.68 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.83 suggests a low likelihood of earnings manipulation.
- Company is effectively debt-free after netting cash.
- Interest coverage of -93.7× leaves little room for earnings shocks.
- Roku, Inc. Class A Common Stock posted a net loss in 7 of 9 available completed fiscal years (2017–2025).
See how ROKU ranks on the Capex Tracker — top 50 capital spenders compared.
No significant market moves for ROKU in the last 30 days.
See ROKU move history →Frequently Asked Questions about ROKU
Is ROKU stock a buy right now?
PreMarketPrice's quantitative model rates Roku, Inc. Class A Common Stock's financial health at 75/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is ROKU stock overvalued?
Roku, Inc. Class A Common Stock trades at a trailing P/E of 114.4 and our valuation score rates it 40/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Roku, Inc. Class A Common Stock report earnings?
No confirmed earnings date is currently scheduled for ROKU. The Earnings section lists recent reports and updates as dates are announced.
What sector does Roku, Inc. Class A Common Stock operate in?
Roku, Inc. Class A Common Stock operates in the Communication Services sector, within the Cable & Other Pay Television Services industry. The Related Stocks section lists sector peers for comparison.
What does Roku, Inc. Class A Common Stock do?
Roku enables consumers to stream television programming.
About Roku, Inc. Class A Common Stock (ROKU) Stock
Roku, Inc. Class A Common Stock (ROKU) is a US-listed stock operating in the Communication Services sector, specifically the Cable & Other Pay Television Services industry. Real-time pricing data for Roku, Inc. Class A Common Stock is available on this page with a market capitalization of $22.7 billion. The financial health score for ROKU is 75/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for ROKU stock.
ROKU Stock Analysis & Key Metrics
On PreMarketPrice, you can track Roku, Inc. Class A Common Stock (ROKU) across multiple dimensions:
- Pre-market price & movement: Real-time ROKU stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for ROKU with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Roku, Inc. Class A Common Stock across multiple reporting periods.
- Financial health score: A composite score of 75/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ROKU.
- Sector peers: Compare ROKU against 10 other communication services stocks on key financial metrics.
Is ROKU a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Roku, Inc. Class A Common Stock (ROKU) as an investment. The financial health score of 75/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Roku, Inc. Class A Common Stock (ROKU) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.