ROKU

Roku, Inc.

Fundamental data last updated:May 21, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Communication Services

industry

Entertainment

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

07/30/2026

Business Summary

Roku, Inc., together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live TV, news sports, shows, and others. As of December 31, 2021, the company had 60.1 million active accounts. It also provides digital and video advertising, content distribution, subscription, and billing services, as well as other commerce transactions, and brand sponsorship and promotions; and manufactures, sells, and licenses smart TVs under the Roku TV name. In addition, the company offers streaming players, and audio products and accessories under the Roku brand name; and sells branded channel buttons on remote controls of streaming devices. It provides its products and services through retailers and distributors, as well as directly to customers through its website in the United States, Canada, the United Kingdom, France, Mexico, Brazil, Chile, Peru, North and South Americas, and Europe. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.

 


Analyze ROKU on TradingView

VALUATION

P/E

87.73

Market Cap ($M USD)

$17.70B

Forward P/E

16.62

PEG

0.04

PRICE TO SALES

3.56

PRICE TO BOOK

6.62

EV / EBITDA

46.20

5-Year Average P/E

Free Cash Flow Yield

3.69%

DCF Value

$-3.88

Graham Number

$23.59

Price to FCF

27.12

EV to FCF

25.22

Earnings Yield

1.14%

FCF Yield

3.69%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.37

Next Year EPS Growth Estimate

$7.21

Next Year Revenue Growth Estimate

$798.16B

Return on Equity (ROE)

7.64%

FREE CASH FLOW

Operating Margin

2.09%

Debt-to-Equity

0.33

Piotroski F-Score

7

Altman Z-Score

7.93

Return on Invested Capital (ROIC)

3.25%

Current Ratio

2.91

Quick Ratio

2.82

Net Debt to EBITDA

-3.47

Interest Coverage

49.54

Gross Profit margin

44.19%

FCF PER SHARE

$4.42

REVENUE PER SHARE

$33.66

Analyze ROKU on TradingView

Gainseekers Quantitative Analysis

Summary

Roku’s financial snapshot reveals a perplexing dichotomy. Despite a staggering Forward P/E of 17.97, the stock’s DCF Value is alarmingly negative, suggesting potential overvaluation. The Altman Z-score of 8.22 indicates robust financial health, yet the Earnings Yield of just 1.05% raises questions about its immediate profitability. The Graham Number further underscores this valuation puzzle, hinting at a disconnect between intrinsic value and market pricing. Investors must weigh these contradictions carefully.

AI Exposure / Tech Reliance

Operating within the Entertainment sector, Roku is uniquely positioned to leverage AI and tech advancements. Its role in streaming services aligns with the digital shift, offering resilience against traditional media declines. This adaptability is crucial in maintaining relevance in a rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Roku presents a compelling case. The Piotroski F-Score of 7 signals strong financial health, while a respectable ROIC of 3.25% showcases efficient capital use. Despite a modest Operating Margin of 2.09%, the company's ability to generate Free Cash Flow, evidenced by a Price to FCF of 29.31, highlights its potential for sustainable growth. These metrics suggest a company with pricing power and operational efficiency.

The Bear Case

However, the bear case cannot be ignored. Roku's Price/Book ratio of 7.15 and Price/Sales of 3.85 suggest a premium valuation that may not be justified by its current earnings profile. The stock's proximity to its 52-week high, just 0.92% away, indicates potential technical overextension. Additionally, an EV to EBITDA of 50.22 raises red flags about its cash flow generation relative to enterprise value, hinting at possible overvaluation.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$142.19

Institutional Ownership %

1-Year Beta

2.04

Insider Buying % (6 Mo)

Distance to 52-Week High

9.64%

Distance to 52-Week Low

43.53%

EARNINGS SURPRISE %

67.65%

50-DAY SMA

$108.05

200-DAY SMA

$100.74

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.