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Cloudflare Inc NET

Morningstar Rating
$79.08 +1.40 (1.80%)
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Company Report

We’d Give Cloudflare a Competitive Edge as It Continues to Widen its Set of Security Solutions

We believe Cloudflare is poised for success in both the security and edge computing spaces. As a security-focused content delivery network (CDN), Cloudflare stands to benefit from increased cybersecurity spend. Currently, more than 10% of global internet traffic goes through Cloudflare’s network, with more than one quarter of all websites in the world using Cloudflare. We expect cybersecurity to be increasingly relevant for firms across the globe as cyberattacks continue to increase. However, we think Cloudflare is capable of much more than security, and we view edge computing as a major opportunity for the firm.

Price vs Fair Value

NET is trading at a 499% premium.
Price
$79.08
Fair Value
$87.00
Uncertainty
Very High
1-Star Price
$251.97
5-Star Price
$46.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Cloudflare has strong tailwinds behind its back as edge computing becomes more prevalent.

Bears

Cloudflare is in direct competition with well-established, far larger incumbents such as Amazon, Microsoft, and Google in the edge computing space.

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News

Trading Information

Previous Close Price
$77.68
Day Range
$77.0379.89
52-Week Range
$53.88116.00
Bid/Ask
$78.44 / $80.00
Market Cap
$26.87 Bil
Volume/Avg
3.8 Mil / 3.2 Mil

Key Statistics

Price/Earnings (Normalized)
138.74
Price/Sales
19.17
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
< 0.01%

Company Profile

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm’s edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
3,704

Competitors

Valuation

Metric
NET
AKAM
FSLY
Price/Earnings (Normalized)
138.7413.72
Price/Book Value
33.702.910.96
Price/Sales
19.173.551.76
Price/Cash Flow
70.928.7512.13
Price/Earnings
NET
AKAM
FSLY

Financial Strength

Metric
NET
AKAM
FSLY
Quick Ratio
3.382.963.63
Current Ratio
3.513.253.83
Interest Coverage
−50.6529.08−42.81
Quick Ratio
NET
AKAM
FSLY

Profitability

Metric
NET
AKAM
FSLY
Return on Assets (Normalized)
7.51%10.85%−1.06%
Return on Equity (Normalized)
28.23%22.65%−1.78%
Return on Invested Capital (Normalized)
6.64%11.37%−2.07%
Return on Assets
NET
AKAM
FSLY
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