ROKU INC Analysis: Mixed Signals in Fundamental Report

ROKU INC presents a mixed fundamental profile. Their rating stands at 58% due to poor performance in key metrics. Investors should closely monitor these indicators for potential stock price impact.

Date: 23-01-2025

AI Rating: 5

Analysis of ROKU INC's Fundamentals
ROKU INC's current rating of 58% according to the Price/Sales Investor model signals mixed performance regarding its fundamentals and valuation. Although the stock has passed the Total Debt/Equity Ratio and Price/Research Ratio tests, it has several significant failures that could hinder investor confidence.

Long-Term EPS Growth Rate: The stock has failed in this area, indicating that ROKU may not be growing its earnings effectively over time, which can negatively affect investor perceptions and stock price potential.
Three Year Average Net Profit Margin: The failure in this metric suggests that ROKU's profitability may be lacking, potentially leading to concerns regarding its ability to generate sustainable profits in the future.
Free Cash Flow: On a positive note, ROKU has passed the Free Cash Per Share criterion, showing that it might be generating sufficient free cash flow to support its operations and future investments.
Price/Sales Ratio: The repeated failures in the Price/Sales Ratio also indicate that the stock may be overvalued relative to its sales, which poses a risk for potential investors.

Overall, investors should approach ROKU stock with caution, considering its mixed signals in crucial fundamental indicators. The failures related to EPS growth and profit margins raise red flags, while the passing of Free Cash Per Share provides a slight offset.

Stocks: ROKU