Cloudflare Inc Scores 66% on Growth Investor Model

Market Update: Cloudflare Inc (NET) rates highest in the P/B Growth Investor model with a 66%, indicating positive investor sentiment based on its underlying fundamentals and stock valuation.

Date: 08-03-2025

AI Rating: 6

Positive Rating in Selected Growth Strategy
CLOUDFLARE INC (NET) stands out in the P/B Growth Investor model, achieving a rating of 66%, which indicates some potential interest based on the stock's valuation and fundamentals. A score of 80% or more is seen as an indicative sign of stronger interest, which makes the current rating slightly below that threshold, suggesting cautious optimism.

**Strengths and Weaknesses Based on Tests**
The stock passes in the following areas:

Book/Market Ratio
Cash Flow from Operations vs. Return on Assets
Return on Assets Variance
Sales Variance
Capital Expenditures to Assets
Research and Development to Assets

However, it fails in crucial areas as indicated:

Return on Assets
Cash Flow from Operations to Assets
Advertising to Assets

These failures may raise concerns about the company's ability to generate earnings effectively and could negatively impact overall investor confidence moving forward.

The positives identified, such as a favorable book-to-market ratio and maintenance of capital expenditures toward assets, suggest some long-term growth potential. Ultimately, the present score of 66% could be seen as a starting point for investors to watch for improvements in the company's fundamental metrics in the future.

Stocks: NET