Cloudflare Inc (NET) Gains High Rating from Growth Investor Model

Cloudflare Inc (NET) receives a 66% rating in a growth model, indicating solid fundamentals. Investors may find this stock worth considering as its valuation shows strong potential for future growth.

Date: 24-02-2025

AI Rating: 5

Cloudflare Inc (NET) Analysis

Cloudflare Inc (NET) has achieved a rating of 66% using the P/B Growth Investor model. This model focuses on low book-to-market stocks that are forecasted to demonstrate sustained future growth. While the rating indicates reasonable potential, it falls short of the 80% threshold.

The growth model's evaluation considers various factors:

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS TO ASSETS: FAIL
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS

Overall, while there are strengths shown in areas such as the Book/Market Ratio and Sales Variance, the failures in key metrics such as Return on Assets and Cash Flow from Operations could be concerning. These metrics may suggest inefficiencies in capital allocation or operational performance. Investors should weigh this mixed performance when considering investment strategies revolving around Cloudflare, balancing the positives against the weaknesses noted in the analysis.

Stocks: NET