ROKU INC Rates 57% Under Benjamin Graham's Strategy

ROKU INC earns a 57% rating based on its fundamentals according to a deep value strategy. It passes several tests, but fails on long-term EPS growth and P/E ratio. This mixed performance could influence investor sentiment and stock prices.

Date: 25-02-2025

AI Rating: 5

Evaluation Summary
ROKU INC has achieved a 57% rating utilizing the Value Investor model inspired by Benjamin Graham. This score indicates that while ROKU shows some promise, it does not meet the high standards typically desired by value investors.

Key Strengths
The stock passes several fundamental criteria: sector classification, sales performance, current ratio, and long-term debt in relation to net current assets. These passes suggest a relatively stable financial situation and might inspire confidence among some investors.

Key Weaknesses
However, the stock may face negative repercussions as it fails on critical points: long-term EPS growth, P/E ratio, and price/book ratio. The failure in long-term EPS growth indicates a potential lack of future earnings strength, which may deter growth-focused investors. Similarly, failing on the P/E ratio could imply that investors perceive the stock as overpriced relative to its earnings, raising concerns about whether it can deliver profitable growth moving forward. The poor performance in price/book ratio may also be viewed negatively, suggesting that the stock is not effectively leveraging its book value.

Investors evaluating ROKU should thus weigh its high rating from the Value Investor model against these shortcomings. The mixed signals could create volatility in its stock price as investor sentiment fluctuates in response to these differing indicators.

Stocks: ROKU