NET Cloudflare, Inc. - Fundamental Analysis
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NET Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Infrastructure
Current Price
Live
$184.17
Analyst Target
$236.38
+28.3%
Upside
52W High
$260.0
52W Low
$89.42
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$64.51B
P/E
N/A
ROE
-8.9%
Profit margin
-5.1%
Debt/Equity
2.6
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals significant financial health concerns, with a weak Piotroski F-Score of 2/9 indicating poor fundamental strength. Despite robust revenue growth of 30.7% and strong earnings surprises historically, the company remains unprofitable with negative profit and operating margins, while carrying a high debt/equity ratio of 2.60. Valuation multiples are extremely elevated, with a Price/Sales of 32.04 and Forward P/E of 156.48, reflecting aggressive growth expectations not yet supported by profitability. Insider selling activity totaling $103.92M over the past six months further raises caution, even as analysts maintain a 'buy' recommendation.
Key Strengths
Exceptional revenue growth at 30.7% YoY, significantly outpacing sector average of 19.00%
High gross margin of 75.20%, indicating strong pricing power and scalable business model
Consistent earnings beat record, with 9 of last 10 quarters exceeding estimates by double digits
Strong cash conversion cycle management implied by healthy current and quick ratios above 2.0
Market leadership in cloud security and edge computing with expanding enterprise adoption
Key Risks
Very weak Piotroski F-Score of 2/9 signals deteriorating financial health and poor earnings quality
Negative ROE (-8.88%) and negative net income despite top-line growth raise sustainability concerns
Extremely high valuation metrics: Forward P/E of 156.48 and Price/Sales of 32.04 imply perfection is priced in
High debt/equity ratio of 2.60, well above sector average of 0.80, increasing financial risk
Bearish insider sentiment with $103.92M in net selling over last 6 months, including CEO sales
AI Fair Value Estimate
Based on comprehensive analysis
$145.5
-21.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
39
Weak
30
75
65
25
0
AI Verdict
Neutral with upside risk if profitability improves
Key drivers: High growth trajectory, Premium valuation, Weak profitability, Deteriorating insider sentiment, Strong gross margins
Confidence
70%
Value
30/100
Ref P/E, PEG, Graham Number
Positives
- None
Watchpoints
- Forward P/E of 156.48 is extremely high
- Price/Sales of 32.04 far exceeds peer average
- No Graham Number or Intrinsic Value available due to unprofitability
Future
75/100
Ref Growth rates
Positives
- 30.7% YoY revenue growth
- Strong earnings momentum with 775% YoY EPS growth
- Analyst target price implies 28% upside
Watchpoints
- Earnings growth not yet consistent or profitable
- Forward P/E assumes sustained hypergrowth
Past
65/100
Ref Historical trends
Positives
- Consistent earnings beats over last 2 years
- Revenue growth accelerating from prior periods
- Improving EPS trend from negative to positive
Watchpoints
- Long history of unprofitability
- Inconsistent quarterly earnings progression
Health
25/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current ratio of 2.04 indicates short-term liquidity
- Quick ratio of 1.99 shows strong asset coverage
Watchpoints
- Piotroski F-Score of 2/9 indicates weak financial health
- Negative ROE and ROA
- High debt/equity ratio of 2.60
Dividend
0/100
Ref Yield, Payout
Positives
- None
Watchpoints
- No dividend paid
- Dividend strength score of 0/100
- Payout ratio is 0% due to lack of dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$184.17
Analyst Target
$236.38
Upside/Downside
+28.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for NET and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
NET
Cloudflare, Inc.
Primary
|
+126.1% | +297.3% | +60.4% | -6.7% | -3.8% | +0.8% |
|
TEL
TE Connectivity plc
Peer
|
+132.0% | +96.8% | +57.4% | +45.9% | +6.6% | -2.1% |
|
GLW
Corning Incorporated
Peer
|
+154.6% | +161.6% | +78.8% | +72.4% | -4.9% | -3.7% |
|
FTNT
Fortinet, Inc.
Peer
|
+154.3% | +50.5% | -19.9% | -28.5% | -5.0% | -4.8% |
|
SNOW
Snowflake Inc.
Peer
|
-26.5% | +44.4% | +25.5% | -3.0% | -2.7% | -4.0% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
N/A
Forward P/E
156.48
PEG Ratio
N/A
P/B Ratio
47.89
P/S Ratio
32.04
EV/Revenue
31.77
EV/EBITDA
-1313.92
Market Cap
$64.51B
Profitability
Profit margins and return metrics
Profit Margin
-5.12%
Operating Margin
-6.67%
Gross Margin
75.2%
ROE
-8.88%
ROA
-2.71%
Growth
Revenue and earnings growth rates
Revenue Growth
+30.7%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
2.6
High debt
Current Ratio
2.04
Strong
Quick Ratio
1.99
Excellent
Cash/Share
$11.54
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-10
$N/A
2025-10-30
$0.27
+15.4% surprise
2025-07-31
$0.21
+15.5% surprise
2025-05-08
$0.16
-1.6% surprise
Technology Sector Comparison
Comparing NET against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
Return on Equity (ROE)
-8.88%
This Stock
vs
-8.13%
Sector Avg
+9.2%
(Above Avg)
Profit Margin
-5.12%
This Stock
vs
-7.75%
Sector Avg
-34.0%
(Weaker)
Debt to Equity
2.6
This Stock
vs
0.76
Sector Avg
+240.1%
(Higher)
Revenue Growth
30.7%
This Stock
vs
56.87%
Sector Avg
-46.0%
(Slower)
Current Ratio
2.04
This Stock
vs
3.33
Sector Avg
-38.8%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
NET
Cloudflare, Inc.
|
NEUTRAL | $64.51B | - | -8.9% | -5.1% | $184.17 | |
|
TEL
TE Connectivity plc
|
BULLISH | $69.82B | 38.47 | 14.6% | 10.7% | $237.33 | |
|
GLW
Corning Incorporated
|
NEUTRAL | $70.61B | 52.6 | 12.7% | 9.2% | $82.06 | |
|
FTNT
Fortinet, Inc.
|
NEUTRAL | $57.76B | 31.02 | 228.0% | 28.6% | $75.38 | |
|
SNOW
Snowflake Inc.
|
BEARISH | $71.99B | - | -53.1% | -30.8% | $210.38 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-08 | PRINCE MATTHEW | Chief Executive Officer | Sale | 157,152 | $30,701,127 |
| 2026-01-08 | PRINCE MATTHEW | Chief Executive Officer | Stock Award | 157,152 | - |
| 2026-01-05 | GRAHAM-CUMMING JOHN | Director | Sale | 2,520 | $504,676 |
| 2026-01-05 | LEDBETTER CARL | Director | Sale | 6,134 | $1,216,136 |
| 2026-01-05 | GRAHAM-CUMMING JOHN | Director | Option Exercise | 2,520 | $112,694 |
| 2026-01-02 | HAWKINS MARK J | Director | Sale | 134 | $26,653 |
| 2026-01-02 | KRAMER DOUGLAS JAMES | Officer | Sale | 9,000 | $1,786,861 |
| 2025-12-30 | LEDBETTER CARL | Director | Sale | 8,866 | $1,786,141 |
| 2025-12-22 | SUDER KATRIN | Director | Sale | 2,031 | $406,200 |
| 2025-12-22 | SEIFERT THOMAS J | Chief Financial Officer | Sale | 10,000 | $2,016,931 |
| 2025-12-22 | SEIFERT THOMAS J | Chief Financial Officer | Stock Award | 10,000 | - |
| 2025-12-15 | GRAHAM-CUMMING JOHN | Director | Sale | 2,520 | $502,425 |
| 2025-12-15 | GRAHAM-CUMMING JOHN | Director | Option Exercise | 2,520 | $112,694 |
| 2025-12-11 | ZATLYN MICHELLE | President | Sale | 76,923 | $15,888,932 |
| 2025-12-11 | ZATLYN MICHELLE | President | Stock Award | 76,923 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
30 analysts
Citigroup
2026-01-16
Buy
Buy
UBS
2026-01-13
Neutral
Neutral
Piper Sandler
2026-01-05
Neutral
Neutral
Barclays
2025-12-02
Overweight
Argus Research
2025-11-10
Buy
Buy
Citigroup
2025-11-03
Buy
Buy
Susquehanna
2025-11-03
Neutral
Neutral
Wells Fargo
2025-10-31
Overweight
Overweight
Piper Sandler
2025-10-31
Neutral
Neutral
UBS
2025-10-31
Neutral
Neutral
Past News Coverage
Recent headlines mentioning NET from our newsroom.
Newest → oldest
No matching news yet.