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Roku Inc Class A ROKU

Morningstar Rating
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Stock XNAS Rating as of
$61.83 +0.09 (0.15%)
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As of Delayed Price Post-Trading: $60.50 −1.00
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Company Report

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Roku's the Leading Streaming Platform Provider, but Attaining a Competitive Edge Is a Challenge

Matthew Dolgin

Roku is the leading streaming platform in the U.S. by hours watched with 87.4 billion hours of content streamed in 2022. The Roku platform provides its users with access to streaming services such as Netflix, YouTube, and Disney+. The company also offers its own ad-supported content channels that feature licensed third-party content. Its namesake operating system is used on not only Roku-branded hardware but also in cobranded TVs and soundbars. Roku generates revenue from advertising, distribution fees, hardware sales, and subscription sales.

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Price vs Fair Value

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ROKU is trading at a 22% discount.
Price
$58.57
Fair Value
$61.00
Uncertainty
Very High
1-Star Price
$991.61
5-Star Price
$78.40
Economic Moat
Xvv
Capital Allocation
Wrhfwpt

Bulls Say, Bears Say

Bulls

Roku is well positioned to take advantage of the secular trend toward increased content streaming in the U.S. and aboard.

Bears

Despite its tremendous subscriber growth, Roku has yet to generate operating income, and there may not be substantial leverage in the current business model.

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News

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Trading Information

Previous Close Price
$61.74
Day Range
$60.72–62.44
52-Week Range
$51.62–108.84
Bid/Ask
$60.44 / $60.65
Market Cap
$8.87 Bil
Volume/Avg
3.2 Mil / 5.9 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
2.38
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Roku is the leading streaming platform in the U.S. by hours watched with 87.4 billion hours of content streamed in 2022. The firm’s namesake operating system is used not only in Roku’s own hardware but in cobranded TVs and soundbars from manufacturers like TCL, Onn, and Hisense. Roku generates revenue from advertising, distribution fees, hardware sales, OS licensing, and subscription sales.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Small Growth
Total Number of Employees
3,150
Website
https://www.roku.com

Competitors

Valuation

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Metric
ROKU
GOOGL
AMZN
Price/Earnings (Normalized)
 —26.8763.20
Price/Book Value
 3.616.969.23
Price/Sales
 2.386.553.28
Price/Cash Flow
 31.5119.0719.52
Price/Earnings
ROKU
GOOGL
AMZN

Financial Strength

Metric
ROKU
GOOGL
AMZN
Quick Ratio
 2.231.940.70
Current Ratio
 2.412.100.98
Interest Coverage
 −957.12266.757.45
Quick Ratio
ROKU
GOOGL
AMZN

Profitability

Metric
ROKU
GOOGL
AMZN
Return on Assets (Normalized)
 −4.90%24.48%9.11%
Return on Equity (Normalized)
 −8.36%35.00%26.76%
Return on Invested Capital (Normalized)
 −6.57%30.54%14.52%
Return on Assets
ROKU
GOOGL
AMZN
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