ROKU Roku, Inc. - Fundamental Analysis
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ROKU Stock | Fundamental Analysis & Investment Insights
NASDAQ
Communication Services
Entertainment
Current Price
Live
$103.66
Analyst Target
$123.46
+19.1%
Upside
52W High
$116.66
52W Low
$52.43
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$15.32B
P/E
N/A
ROE
-1.1%
Profit margin
-0.6%
Debt/Equity
0.21
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
Roku's financial health is weak, as evidenced by a low Piotroski F-Score of 2/9, indicating significant operational and profitability concerns. Despite strong revenue growth of 14% and impressive recent earnings surprises, the company remains unprofitable with negative profit and return metrics, while trading at a high forward P/E of 79.39. Insider selling activity is a red flag, yet analyst consensus remains at 'buy' with a target price above current levels. The stock appears priced for substantial growth, but financial instability and valuation risk create a balanced outlook.
Key Strengths
Strong year-over-year revenue growth of 14.00%, outpacing sector average of 12.67%
High gross margin of 43.58%, indicating strong pricing power and cost control in core operations
Consistent earnings beat streak with 3 out of last 4 quarters exceeding estimates, averaging +88.6% surprise
Solid balance sheet liquidity with current and quick ratios of 2.74 and 2.54, respectively
Significant year-over-year EPS growth of +366.7% and Q/Q growth of +128.6%, showing rapid improvement in profitability trajectory
Key Risks
Very low Piotroski F-Score of 2/9, signaling weak financial health and high risk of operational deterioration
Negative profitability across key metrics: profit margin (-0.61%), ROE (-1.09%), and ROA (-1.48%)
Extremely high forward P/E of 79.39 compared to sector average of 21.98, implying elevated valuation risk
Insiders have been aggressively selling, with $19.49M in net sales over the last 6 months, suggesting lack of confidence
Technical trend score of 10/100 indicates strong bearish momentum near-term despite longer-term gains
AI Fair Value Estimate
Based on comprehensive analysis
$85.0
-18.0% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
38
Weak
35
75
50
30
0
AI Verdict
Cautiously optimistic with significant financial and valuation risks
Key drivers: High growth expectations, Improving earnings trajectory, Weak current profitability, Aggressive insider selling, Rich valuation multiples
Confidence
70%
Value
35/100
Ref P/E, PEG, Graham Number
Positives
- Price/Sales of 3.37 is reasonable for a high-growth tech firm
Watchpoints
- Forward P/E of 79.39 is extremely high
- No Graham Number or Intrinsic Value available due to unprofitability
- Price/Book of 5.83 exceeds sector median
Future
75/100
Ref Growth rates
Positives
- Revenue growth of 14.00% YoY
- EPS growth of +366.7% YoY and +128.6% QoQ
- Consistent earnings beat trend with high surprise margins
Watchpoints
- Earnings growth not yet sustained; still emerging from losses
- Forward P/E implies perfection in future execution
Past
50/100
Ref Historical trends
Positives
- History of large earnings surprises, including +3030.6% in Q1 2021
- Revenue growth has turned positive after prior volatility
Watchpoints
- Long history of quarterly losses (17 of last 25 quarters negative)
- Profitability only recently improving from deep negative territory
Health
30/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current ratio of 2.74 and quick ratio of 2.54 indicate strong short-term liquidity
- Low debt/equity of 0.21 suggests conservative capital structure
Watchpoints
- Piotroski F-Score of 2/9 indicates severe financial weakness
- Negative ROE, ROA, and net margin persist
- No Altman Z-Score available due to unprofitability
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend paid (yield N/A)
- Dividend strength score of 0/100
- Payout ratio is 0.00% due to lack of dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$103.66
Analyst Target
$123.46
Upside/Downside
+19.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ROKU and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ROKU
Roku, Inc.
Primary
|
-76.1% | +103.1% | +37.9% | +11.1% | -3.7% | -6.8% |
|
BILI
Bilibili Inc.
Peer
|
-75.1% | +30.3% | +103.3% | +43.0% | +34.8% | +2.8% |
|
BCE
BCE Inc.
Peer
|
-19.2% | -32.5% | +14.9% | +5.5% | +9.5% | +4.4% |
|
SIRI
Sirius XM Holdings Inc.
Peer
|
-59.5% | -62.1% | -2.1% | -11.0% | -6.0% | -6.1% |
|
CHTR
Charter Communications, Inc.
Peer
|
-70.0% | -51.1% | -45.3% | -50.3% | -9.5% | -9.9% |
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
79.39
PEG Ratio
N/A
P/B Ratio
5.83
P/S Ratio
3.37
EV/Revenue
2.97
EV/EBITDA
77.7
Market Cap
$15.32B
Profitability
Profit margins and return metrics
Profit Margin
-0.61%
Operating Margin
0.86%
Gross Margin
43.58%
ROE
-1.09%
ROA
-1.48%
Growth
Revenue and earnings growth rates
Revenue Growth
+14.0%
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
0.21
Low debt
Current Ratio
2.74
Strong
Quick Ratio
2.54
Excellent
Cash/Share
$15.88
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-12
$N/A
2025-10-30
$0.16
+96.9% surprise
2025-07-31
$0.07
+144.1% surprise
2025-05-01
$-0.19
+24.8% surprise
Communication Services Sector Comparison
Comparing ROKU against 36 companies in the Communication Services sector
(0 bullish, 17 neutral, 19 bearish)
Return on Equity (ROE)
-1.09%
This Stock
vs
-7.47%
Sector Avg
-85.4%
(Below Avg)
Profit Margin
-0.61%
This Stock
vs
40.35%
Sector Avg
-101.5%
(Weaker)
Debt to Equity
0.21
This Stock
vs
1.12
Sector Avg
-81.5%
(Less Debt)
Revenue Growth
14.0%
This Stock
vs
28.6%
Sector Avg
-51.0%
(Slower)
Current Ratio
2.74
This Stock
vs
2.2
Sector Avg
+24.2%
(Stronger)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ROKU
Roku, Inc.
|
NEUTRAL | $15.32B | - | -1.1% | -0.6% | $103.66 | |
|
BILI
Bilibili Inc.
|
NEUTRAL | $13.63B | 128.46 | 5.4% | 2.6% | $33.4 | |
|
BCE
BCE Inc.
|
NEUTRAL | $23.5B | 5.13 | 31.4% | 25.9% | $25.2 | |
|
SIRI
Sirius XM Holdings Inc.
|
NEUTRAL | $6.89B | 5.02 | 8.9% | 11.6% | $20.45 | |
|
CHTR
Charter Communications, Inc.
|
BEARISH | $25.92B | 5.26 | 31.3% | 9.3% | $189.76 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-15 | JEDDA DANIEL | Chief Operating Officer | Sale | 3,000 | $322,680 |
| 2026-01-12 | WOOD ANTHONY J | Chief Executive Officer | Sale | 75,000 | $8,220,734 |
| 2026-01-12 | WOOD ANTHONY J | Chief Executive Officer | Stock Award | 75,000 | - |
| 2026-01-02 | BANKS MATTHEW C. | Officer | Sale | 729 | $79,490 |
| 2026-01-02 | HUNT NEIL D | Director | Sale | 2,000 | $217,966 |
| 2026-01-02 | HUNT NEIL D | Director | Stock Award | 2,000 | - |
| 2025-12-15 | JEDDA DANIEL | Chief Operating Officer | Sale | 3,000 | $322,320 |
| 2025-12-12 | FUCHSBERG GILBERT | Officer | Sale | 3,250 | $353,535 |
| 2025-12-11 | WOOD ANTHONY J | Chief Executive Officer | Sale | 75,000 | $7,983,343 |
| 2025-12-11 | WOOD ANTHONY J | Chief Executive Officer | Stock Award | 75,000 | - |
| 2025-12-01 | BANKS MATTHEW C. | Officer | Sale | 731 | $69,913 |
| 2025-12-01 | HUNT NEIL D | Director | Sale | 2,000 | $192,354 |
| 2025-12-01 | HUNT NEIL D | Director | Stock Award | 2,000 | - |
| 2025-11-18 | BANKS MATTHEW C. | Officer | Sale | 719 | $68,370 |
| 2025-11-18 | COLLIER CHARLES | Officer | Sale | 14,361 | $1,364,115 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
24 analysts
B of A Securities
2026-01-12
Buy
Buy
Evercore ISI Group
2026-01-08
In-Line
Outperform
Arete Research
2026-01-05
Neutral
Buy
JP Morgan
2025-12-12
Overweight
Overweight
Wedbush
2025-12-11
Outperform
Outperform
Jefferies
2025-12-11
Hold
Buy
Guggenheim
2025-12-04
Buy
Buy
Citizens
2025-12-02
Market Outperform
Market Outperform
UBS
2025-11-03
Neutral
Neutral
Piper Sandler
2025-11-03
Neutral
Overweight
Past News Coverage
Recent headlines mentioning ROKU from our newsroom.
Newest → oldest
No matching news yet.