Stock Analysis
Roku, Inc. Class A Common StockROKU
P/E 64.61×· 5Y range 49.88–197.25×· bottom 23% of history
Sector: Communication Services · Industry: Cable & Other Pay Television Services
AnalystsHold36 analystsP/E 64.6× sits at the 23rd percentile of its 5.0513347022587265-year history.
No reported debt · FY 2022.
PMP Verdict
Mixed fundamentals, cheap valuation
Strengths
- Quality77
Risks
- Growth45
- Financial Health50
Mixed business trading cheap — priced for skepticism.
Bull Case
- ✓Altman Z 9.1 — safe-zone balance sheet
- ✓Revenue CAGR 14.4% — durable top-line growth
- ✓P/E 64.6× at bottom 23% of 5-year history
What's happening with ROKU
Profile
Strong earnings quality; moat and growth lag behind.
How is each axis scored?
- Valuation62/100 · Moderate
- P/E vs own history (23th pct)20/25
- FCF yield (3.1%)12/25
- P/S (4.4x)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 (46.8%)25/25
- Profitability55/100 · Moderate
- ROIC (63.4%)25/25
- ROE (13.4%)12/25
- Net margin (6.8%)13/25
- Operating margin (5.2%)5/25
- Financial Health50/100 · Moderate
- Altman Z (9.07)25/25
- Current ratio (2.75)25/25
- Interest coverage (-85.4x)0/25
- Net cash / debt (n/a)0/25
- Quality77/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.83)25/25
- FCF conversion (200%)25/25
- Margin stability (σ 9.8%)12/25
- Moat30/100 · Weak
- ROIC >12% years (1/8 yrs)0/25
- Median gross margin (43.9%)20/25
- FCF-positive years (6/9 yrs)10/25
- Worst-year net margin (worst -20.4%)0/25
Risk Flags
- ⚠SBC 6.3% of revenue — real dilution cost
- ⚠7 loss-making years in recent history
- ⚠Interest coverage -85.4× — thin debt cushion
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 ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
62BP/E (TTM)64.6xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 49.9x–197.2x · 23rd pct
P/FCF32.4xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield3.1%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -6.1%–5.7% · 79th pct
P/S (TTM)4.41xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.7x–19.5x · 85th pct
EV/EBITDA61.3xD
Grade D: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral — vs own 5Y history: 43.7x–195.4x · 51st pct
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 Ratio8.63xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.11B
Grade B: FairFinnhub 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
55CROIC63.4%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE13.4%C
Grade C: AverageReturn 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 Margin6.8%C
Grade C: AverageNet Income / Revenue
Operating Margin5.2%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin45.5%C
Grade C: AverageGross Profit / Revenue
FCF Margin13.6%C
Grade C: AverageFCF / Revenue
True FCF Margin7.3%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
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 Growth46.8%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+5.2%C
Grade C: DilutiveShare count change over 5Y
SBC / Net Income92.4%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue6.3%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
50CAltman Z-Score9.07A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.75xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio2.65xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage-85.4xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt Repayment—
Years 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
Quality
77B+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 Conversion199.9%A
Grade A: StrongFCF / Net Income
Margin Stability9.8%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue0.2%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover1.17xA
Grade A: HighRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Collier Charles Filed | Collier Charles | Option exercise | -10269 | |
Collier Charles Filed | Collier Charles | SellOpen market sale | -424 | |
Collier Charles Filed | Collier Charles | SellOpen market sale | -9845 | |
Collier Charles Filed | Collier Charles | Option exercise | +10.3K | |
Collier Charles Filed | Collier Charles | SellOpen market sale | -580 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Collier Charles Filed | Collier Charles | SellOpen market sale | -9689 | |
Banks Matthew C. Filed | Banks Matthew C. | SellOpen market sale | -554 | |
HUNT NEIL D Filed | HUNT NEIL D | SellC | -2000 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
30DROIC >12% Years1/8 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)43.9%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years6/9 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor-20.4%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$2.39
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$17.23
Cash & short-term investments per share (Finnhub)
Book Value / Share$19.02
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$2.32B
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$2.66B
Shareholders' equity (book value)
Asset / Liability2.50xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$22.95B
Current Market Capitalization
Beta2.12D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
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 Jun 2026 · Ratio snapshot Oct 16, 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 9.07 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.
- Interest coverage of -85.4× 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.
Recent Market Moves
See all ROKU moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | Pre-market | 151.00 | -1.03% | -2.11 |
| Oct 15 | Regular | 154.46 | +1.24% | 2.75 |
| Oct 15 | After-hours | 154.67 | +1.38% | 3.04 |
Frequently Asked Questions about ROKU
What is the current Roku, Inc. Class A Common Stock (ROKU) stock price?
ROKU is trading at $154.54 in after-hours trading, down 0.08% on the session. PreMarketPrice tracks ROKU pre-market, intraday and after-hours prices.
Is ROKU stock a buy right now?
PreMarketPrice's quantitative model rates Roku, Inc. Class A Common Stock's financial health at 50/100. 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 64.6 and our valuation score rates it 62/100 (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. As of the latest update, Roku, Inc. Class A Common Stock is trading at $154.54, down 0.08% on the day with a market capitalization of $22.9 billion. The financial health score for ROKU is 50/100, which indicates moderate 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 50/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for ROKU.
- Sector peers: Compare ROKU against 6 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 50/100 suggests moderate 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.