Roku, Inc.(ROKU) - Stock detail

Roku, Inc.

US
ROKU
Roku, Inc.(Listing date: 09/28/2017)

Roku, Inc. was originally established as a limited liability company in Delaware in October 2002 and subsequently registered in Delaware in February 2008. The company pioneered television programming. Roku, Inc. connects users with the streaming content they love, enables content publishers to build and monetize among a large audience, and provides advertisers with unique capabilities to engage consumers. The company is now large in scale. The disruptive content distribution model of TV streaming is changing billions of dollars in economic value. Roku, Inc. is capitalizing on this enormous economic opportunity by providing a leading TV streaming platform for users, content publishers, and advertisers.

AI Value AnalystHold
Overall Rating5.3/10
Generated at:2026-03-13 17:42:26
Analysis based on 5 financial reports covering periods from 2024-12-31 to 2025-12-31, including quarterly data for 2025. Data sources include annual and quarterly financial statements. Current price data as of March 13, 2026. Analysis includes comprehensive financial metrics and valuation indicators.
Overview

Roku, Inc. is a leading TV streaming platform operator with strong revenue growth and improved financial health, but faces profitability volatility and intense competition in the streaming market. The company has shown a recent return to profitability but quarterly inconsistencies indicate ongoing operational challenges.

Valuation
5/10
Profitability
4/10
Financial health
7/10
Operation Advice
  • Hold existing positions; new investors may consider entry on dips below $85 for long-term growth exposure, but avoid aggressive buying until profitability stabilizes.
  • Monitor advertising demand cycles and quarterly profitability trends closely.

Valuation

P/E TTM
-536.65
P/E LYR
-114.72
P/B MRQ
5.65
P/S TTM
--
AI Analysis
  • Current price of $91.65 suggests mild undervaluation with a fair value range of $80-$112 based on revenue growth and improving profitability. Negative P/E ratios are not meaningful due to recent profitability challenges, while P/S ratio of 2.85 is reasonable for a high-growth streaming company.
  • Negative P/E ratios: Dynamic P/E of -114.72 and TTM P/E of -536.65 are not meaningful due to recent profitability challenges
  • Annual 2025 EPS of $0.60 suggests potential normalization of earnings
  • P/B ratio of 5.65 indicates market values equity above book value, typical for growth-oriented tech stocks but slightly elevated compared to industry peers
  • TTM P/S ratio of 2.85 is reasonable for a high-growth streaming company, reflecting investor expectations for future expansion
  • Based on revenue growth and improving profitability, a justified P/S range of 2.5-3.5 implies a fair value range of $80-$112 per share
  • Current price of $91.65 falls near the lower end, suggesting mild undervaluation if growth sustains
  • Given the volatility, a fundamental target of $95-$105 is reasonable, assuming continued revenue growth and margin expansion
Valuation trend

Profitability

ROE TTM
3.43%
Net margin
1.87%
Gross margin
43.79%
Total revenue
4.74B
AI Analysis
  • Profitability has shown significant improvement with shift from net loss to net income, but remains volatile with thin net margins and quarterly inconsistencies. Gross margin of 43.79% reflects healthy pricing power, while net margin of 1.87% indicates high operating expenses.
  • Gross margin stands at 43.79% (2025 annual), reflecting healthy pricing power and cost control
  • Net margin is thin at 1.87%, indicating high operating expenses relative to revenue
  • ROE improved to 3.43% (from -5.37% in 2024), signaling better capital utilization
  • ROA reached 2.02% (from -3.02%), showing improved asset efficiency
  • Company shifted from net loss of -$129.39 million in 2024 to net income of $88.36 million in 2025
  • Quarterly data reveals instability—Q2 and Q1 2025 reported net losses, while Q3 and annual 2025 showed profits
  • This inconsistency highlights challenges in sustaining profitability amid competitive pressures and investment cycles
  • Key risk: company's reliance on advertising revenue makes it vulnerable to economic cycles and digital ad market fluctuations
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM---1.09%-0.67%0.31%3.43%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue1.81B445.05M942.70M1.47B4.74B

Financial health

Debt/Asset
40.05%
Current ratio
2.75
Quick ratio
2.66
Cash ratio
2.66
AI Analysis
  • Strong financial health with solid liquidity, moderate leverage, and consistent revenue growth. Current ratio of 2.75 and quick ratio of 2.66 indicate sufficient assets to cover short-term obligations, while debt-to-asset ratio of 40.05% suggests balanced use of debt.
  • Strong short-term financial stability with current ratio of 2.75 and quick ratio of 2.66, indicating sufficient assets to cover short-term obligations
  • Moderate debt levels with debt-to-asset ratio of 40.05%, suggesting balanced use of debt without excessive risk
  • Consistent top-line growth with annual revenue reaching $4.74 billion in 2025, up 15.18% year-over-year
  • Quarterly data shows sustained double-digit growth (13.50% in Q3 2025, 15.95% in Q2 2025)
  • Company shifted from net loss of -$129.39 million in 2024 to net income of $88.36 million in 2025, indicating improved cost management and operational efficiency
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset42.08%39.57%39.50%40.30%40.05%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.622.862.852.742.75