ROKU

Roku

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Communication Services

industry

Entertainment

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

Roku operates a streaming platform ecosystem that monetizes through advertising, platform fees, and distribution economics tied to content consumption. Its core strength lies in controlling the user interface layer of streaming, giving it privileged access to viewer data and ad inventory. That position enables it to act as a gatekeeper between content providers and consumers, extracting economics from both sides of the marketplace. The moat is built on scale, device integration, and embedded distribution relationships, which collectively reinforce user stickiness and advertiser demand, turning engagement into recurring platform-driven revenue streams.

VALUATION

P/E

172.4

Market Cap ($M USD)

$15,106

Forward P/E

31.9

PEG

0.3

PRICE TO SALES

3.3

PRICE TO BOOK

5.7

EV / EBITDA

30.5

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.60

Next Year EPS Growth Estimate

$3.22

Next Year Revenue Growth Estimate

12.10%

Return on Equity (ROE)

3.30%

Operating Margin

-0.10%

Debt-to-Equity

0.2

Piotroski F-Score

6

Altman Z-Score

6.3

Return on Invested Capital (ROIC)

2.90%%

Current Ratio

2.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 172.4x earnings, the market is pricing in a massive improvement curve, yet the 31.9 forward P/E and extremely low 0.3 PEG Forward suggest that analysts expect a sharp acceleration in profitability that could make today’s multiple look backward-looking rather than excessive. The balance sheet is undeniably strong, with an Altman Z-Score of 6.3 signaling very low bankruptcy risk and a Current Ratio of 2.8 reinforcing liquidity strength. However, a 3.30% operating margin and 2.90% ROIC reveal a business still struggling to convert scale into durable profitability. This is not deep value — it’s a high-expectation turnaround growth story priced for execution, not safety, despite strong financial stability metrics.

AI Exposure / Tech Reliance

As a Communication Services company in Entertainment, Roku sits directly in the digital content distribution and advertising ecosystem, which is increasingly data-driven and algorithmically optimized. The platform model allows for integration of AI into ad targeting, content recommendations, and user engagement optimization. In an industry rapidly shaped by personalization and automation, Roku’s positioning in streaming distribution provides natural leverage to AI-enabled monetization tools.

The Bull Case

A GARP investor would focus on the disconnect between a 31.9 forward P/E and a 0.3 PEG Forward, which implies the market may be underestimating the earnings ramp relative to expected growth. Financial health is solid: an Altman Z-Score of 6.3 and Current Ratio of 2.8 signal resilience, while a Piotroski F-Score of 6 indicates improving operational quality. Return on Equity of 12.10% is respectable for a scaling platform business, and the modest 3.30% operating margin leaves significant operating leverage potential if revenue expansion continues. With ROIC at 2.90%, even incremental margin improvement could meaningfully expand value creation, making this an operational inflection story rather than a balance sheet gamble.

The Bear Case

The bear case starts with profitability quality: a 172.4 P/E multiple against a thin 3.30% operating margin and just 2.90% ROIC is a fragile setup if growth stumbles. The negative 0.10% Debt/Equity figure may reflect excess cash, but it also suggests capital structure inefficiency and limited financial leverage to amplify returns. EPS Next Year is estimated at just $0.60, which contrasts sharply with the current EPS of 30.5, raising concerns about earnings normalization or volatility. With a TTM Yield of 0.2 and no meaningful dividend support, shareholders are fully dependent on multiple expansion and execution — any operational miss could compress that 172.4 multiple aggressively.

Market Sentiment & Smart Money

Short Interest %

5.90%

Analyst Consensus

1.33

Average Analyst Price Target

$128.35

Institutional Ownership %

86.20%

1-Year Beta

1.82

Insider Buying % (6 Mo)

0.60%%

Distance to 52-Week High

87.80%%

Distance to 52-Week Low

179.70%%