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 Rating4.7/10
Generated at:2026-04-24 17:41:38
Analysis based on financial reports from five periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Stock price data as of 2026-04-25. Data completeness is sufficient for fundamental analysis across valuation, profitability, and financial condition.
Overview

Roku, Inc. (ROKU) is a leading TV streaming platform operator showing a transition to profitability with solid revenue growth and sound financial health, but faces challenges with thin and inconsistent margins and a stock price that appears significantly overvalued based on traditional metrics.

Valuation
2/10
Profitability
5/10
Financial health
7/10
Operation Advice
  • Hold existing positions.
  • The stock is priced for high future growth with little margin for error.
  • Investors should monitor subsequent quarters for consistency in profitability and evidence of operating leverage.
  • Await a more attractive entry point or clearer signs of sustained, higher-margin earnings before considering increasing exposure.

Valuation

P/E TTM
193.86
P/E LYR
-114.72
P/B MRQ
6.44
P/S TTM
--
AI Analysis
  • Valuation metrics indicate the stock is significantly overvalued based on traditional metrics like P/E and P/B, trading at a high premium that reflects market optimism about future growth rather than current profitability.
  • The trailing twelve months (TTM) P/E is 193.86, which is extremely high.
  • The forward (dynamic) P/E is negative (-114.72), which may indicate a data anomaly or negative forward estimates.
  • The Price-to-Book (P/B) ratio is elevated at 6.44.
  • The Price-to-Sales (P/S) ratio is 3.59, which is within a reasonable range for a high-growth company but not cheap.
  • Recent 60-day trading data shows price fluctuation between approximately $84.42 and $120.00, with a recent close at $115.22.
  • Based on traditional valuation metrics (P/E, P/B), ROKU appears significantly overvalued.
  • The market price reflects optimism about the company's platform growth and potential for future margin expansion, not its current profitability.
  • A reasonable price range based on a normalized P/E for a company with 1.87% net margins and high growth would be substantially lower than the current price.
Valuation trend

Profitability

ROE TTM
3.43%
Net margin
1.87%
Gross margin
43.79%
Total revenue
4.74B
AI Analysis
  • Profitability shows a significant positive inflection with a return to annual profitability and solid revenue growth, but margins are thin and quarterly results are inconsistent, indicating earnings are not yet stable.
  • The annual report for 2025-12-31 shows a return to profitability.
  • Revenue grew 15.18% year-over-year to $4.74B.
  • Net Income turned positive at $88.36M, a 168.29% increase from the prior year's loss.
  • The Gross Margin is healthy at 43.79%.
  • The Net Margin is thin at 1.87%, indicating high operating expenses relative to revenue.
  • Return on Equity (ROE) is 3.43% and Return on Assets (ROA) is 2.02%, which are positive but modest.
  • Quarterly data (Q1-Q3 2025) shows inconsistency, with two quarters reporting net losses.
  • This highlights the company's earnings are not yet stable.
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
  • The company's financial health appears stable with strong liquidity and manageable leverage, supporting ongoing operations and potential investments.
  • Liquidity is strong, with a Current Ratio of 2.75 and a Quick Ratio of 2.66.
  • This indicates ample short-term assets to cover liabilities.
  • Leverage is manageable, with a Debt-to-Asset Ratio of 40.05%.
  • This suggests a balanced capital structure without excessive reliance on debt.
  • The balance sheet strength supports ongoing operations and potential investments.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset42.08%39.57%39.50%40.30%40.05%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio2.622.862.852.742.75