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Roku, Inc (ROKU) stock analysis

ROKUNasdaqCable & Other Pay Television ServicesFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 2, 2026Score 14/30216% above fair value
$160.37−2.40 (-1.47%)

Close on Nov 5, 2026Market cap $23.80BP/E 47.4Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth4Performance4Health6Dividend0

Mixed14 of 30 checks passed

Roku passes 14 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
4/6
Past performance
4/6
Financial health
6/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 128%, above the 10% that usually covers the cost of capital.

  • No debt

    Roku has no borrowings on its latest balance sheet.

  • Revenue growing 10%+ a year

    Revenue grew 14.9% a year over the last three fiscal years.

  • Interest well covered

    Operating income covers interest expense 190.2 times.

What to watch

  • Margin of safety under 20%

    The price is 216% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $160.37 is above our fair value estimate of $50.72.

  • Return on equity under 15%

    Return on equity was 18.2% over the last twelve months and averaged -7.4% over five years; we look for 15% on both.

  • P/E above the industry

    Roku's P/E of 47.4 is above the Communications median of 14.4.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E above the industry

    Roku's P/E of 47.4 is above the Communications median of 14.4.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Roku's price-to-book of 7.84 is above the Communications median of 1.60.

  • Trading above fair value

    The share price of $160.37 is above our fair value estimate of $50.72.

  • Margin of safety under 20%

    The price is 216% above fair value, so there is no margin of safety.

Growth4/6

  • Revenue growing 10%+ a year

    Revenue grew 14.9% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 21.1% over the last twelve months; the Communications median is -0.2%.

  • Guidance raised

    Roku raised its FY2026E Total net revenue outlook on Apr 30, 2026.

  • Gross margin improving

    Gross margin was 45.3% over the last twelve months, against 43.6% a year earlier.

Past performance4/6

  • Return on equity under 15%

    Return on equity was 18.2% over the last twelve months and averaged -7.4% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 128%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Roku's return on equity of 18.2% is above the Communications median of 1.1%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was 9.3% over the last twelve months, against a 5-year average of -5.8%.

  • Net margin above the industry

    Roku's net margin of 9.3% is above the Communications median of -2.6%.

Financial health6/6

  • No debt

    Roku has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    Operating income covers interest expense 190.2 times.

  • Short-term assets cover short-term debts

    Current assets are 2.70 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 9.23; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Roku has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$50.72

The share price is 216% above this estimate.

20%+ below
Near fair value
20%+ above
$160.37Price$50.72Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E14.4×–14.4×$48.6847%
EV/EBITDA9.7×–9.7×$49.3841%
P/B3.1×4.6×1.6×$63.5912%
Earnings powerleft out, too far from the others14.9% cost of equity––$13.49–
Fair value$50.72100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Communications median 14.4

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$371.01M
Value traded per 1% price move
$427.10M

Downside

Medium risk

Typical loss in a bad month
19.7%
Volatility (annualized)
40%
Sharpe ratio, 1 year
1.16
Beta to the S&P 500 (5Y)
2.29

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2014 to 2025

Gross margin

43.8%−1.7 pts over 5 years

Operating margin

-0.1%+1.0 pts over 5 years

Net margin

1.9%+2.8 pts over 5 years

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