(NET) Cloudflare - NYSE
Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 79.528m USD | Total Return: 21.9% in 12m
Avg Turnover: 893M
EPS Trend: 83.9%
Qual. Beats: 1
Rev. Trend: 100.0%
Qual. Beats: 12
Warnings
Interest Coverage Ratio -6.8 is critical
Volatile
Tailwinds
Confidence
Cloudflare, Inc. (NYSE: NET) is a global cloud services provider offering security, performance, and networking solutions to businesses across industries including technology, healthcare, financial services, consumer and retail, industrial, non-profit, and government. Its portfolio spans application and network security (web application firewall, DDoS mitigation, bot management, SSL/TLS encryption, API security, and Zero Trust products like Cloudflare Access and Secure Web Gateway), application performance services (content delivery, load balancing, DNS, video streaming, and Cloudflare Waiting Room), and SASE networking offerings (Magic WAN, Magic Transit, Magic Firewall, and Cloudflare Network Interconnect). The company also provides a developer platform built on its global network - including Workers, Pages, R2 object storage, Workers AI, Vectorize, and D1 - as well as consumer products such as the 1.1.1.1 DNS resolver and Cloudflare Registrar for domain management.
Headquartered in San Francisco, California, and incorporated in 2009, Cloudflare went public on September 13, 2019, and is classified within the GICS Application Software sub-industry. Its business model is built on a global edge network of distributed data centers, which allows it to deliver security and performance services close to end users rather than relying on centralized infrastructure.
- Large customer count growth above 2,000 drives subscription revenue
- Workers AI and R2 storage adoption lifts developer segment revenue
- Convertible note offering funds capacity expansion amid margin pressure
| Net Income: -86.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 0.82 > 1.0 |
| NWC/Revenue: 98.99% < 20% (prev 101.9%; Δ -2.89% < -1%) |
| CFO/TA 0.11 > 3% & CFO 679.4m > Net Income -86.7m |
| Net Debt (-393.6m) to EBITDA (137.9m): -2.85 < 3 |
| Current Ratio: 1.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (352.6m) vs 12m ago 2.00% < -2% |
| Gross Margin: 73.33% > 18% (prev 76.88%; Δ -3.55% > 0.5%) |
| Asset Turnover: 47.11% > 50% (prev 47.57%; Δ -0.45% > 0%) |
| Interest Coverage Ratio: -6.82 > 6 (EBIT TTM -67.5m / Interest Expense TTM 9.89m) |
| A: 0.37 (Total Current Assets 4.72b - Total Current Liabilities 2.41b) / Total Assets 6.16b |
| B: -0.20 (Retained Earnings -1.23b / Total Assets 6.16b) |
| C: -0.01 (EBIT TTM -67.5m / Avg Total Assets 4.94b) |
| D: 0.33 (Book Value of Equity 1.53b / Total Liabilities 4.64b) |
| Altman-Z'' = 2.06 = BBB |
| DSRI: 1.02 (Receivables 403.7m/302.3m, Revenue 2.33b/1.77b) |
| GMI: 1.05 (GM 76.88% / 73.33%) |
| AQI: 0.85 (AQ_t 0.09 / AQ_t-1 0.11) |
| SGI: 1.32 (Revenue 2.33b / 1.77b) |
| TATA: -0.12 (NI -86.7m - CFO 679.4m) / TA 6.16b) |
| Beneish M = -2.84 (Cap -4..+1) = A |
As of June 22, 2026, the stock is trading at USD 224.06 with a total of 4,440,900 shares traded. Over the past week, the price has changed by -1.49%, over one month by +5.37%, over three months by +1.55% and over the past year by +21.86%.
Current recommended Stop Loss: 207.00 (which is 7.6% or 1.2 ATR below the current price).
Cloudflare has received a consensus analysts rating of 3.91. Therefore, it is recommended to buy NET.
- StrongBuy: 14
- Buy: 6
- Hold: 12
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 243.1 | 8.5% |
P/E Forward = 188.6792
P/S = 34.1525
P/B = 52.7443
P/EG = 2.3774
Revenue TTM = 2.33b USD
EBIT TTM = -67.5m USD
EBITDA TTM = 137.9m USD
Long Term Debt = 1.98b USD (from longTermDebt, last quarter)
Short Term Debt = 1.37b USD (from shortTermDebt, last quarter)
Debt = 3.78b USD (from shortLongTermDebtTotal, last quarter) + Leases 256.7m
Net Debt = -393.6m USD (calculated: Debt 3.78b - CCE 4.17b)
Enterprise Value = 79.1b USD (79.5b + Debt 3.78b - CCE 4.17b)
Interest Coverage Ratio = -6.82 (Ebit TTM -67.5m / Interest Expense TTM 9.89m)
EV/FCF = 222.6x (Enterprise Value 79.1b / FCF TTM 355.5m)
FCF Yield = 0.45% (FCF TTM 355.5m / Enterprise Value 79.1b)
FCF Margin = 15.27% (FCF TTM 355.5m / Revenue TTM 2.33b)
Net Margin = -3.72% (Net Income TTM -86.7m / Revenue TTM 2.33b)
Gross Margin = 73.33% ((Revenue TTM 2.33b - Cost of Revenue TTM 621.1m) / Revenue TTM)
Gross Margin QoQ = 71.21% (prev 73.64%)
Tobins Q-Ratio = 12.84 (Enterprise Value 79.1b / Total Assets 6.16b)
Interest Expense / Debt = 0.26% (Interest Expense 9.89m / Debt 3.78b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -53.3m (EBIT -67.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.96 (Total Current Assets 4.72b / Total Current Liabilities 2.41b)
Debt / Equity = 2.48 (Debt 3.78b / totalStockholderEquity, last quarter 1.53b)
Debt / EBITDA = -2.85 (Net Debt -393.6m / EBITDA 137.9m)
Debt / FCF = -1.11 (Net Debt -393.6m / FCF TTM 355.5m)
Total Stockholder Equity = 1.39b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.75% (Net Income -86.7m / Total Assets 6.16b)
RoE = -6.23% (Net Income TTM -86.7m / Total Stockholder Equity 1.39b)
RoCE = -2.00% (EBIT -67.5m / Capital Employed (Equity 1.39b + L.T.Debt 1.98b))
RoIC = -1.07% (negative operating profit) (NOPAT -53.3m / Invested Capital 5.00b)
WACC = 11.49% (E(79.5b)/V(83.3b) * Re(12.03%) + D(3.78b)/V(83.3b) * Rd(0.26%) * (1-Tc(0.21)))
Discount Rate = 12.03% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 85.40 | Cagr: 2.09%
[DCF] Terminal Value 68.50% ; FCFF base≈287.0m ; Y1≈329.0m ; Y5≈484.2m
[DCF] Fair Price = 15.78 (EV 4.68b - Net Debt -393.6m = Equity 5.07b / Shares 321.2m; r=11.49% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 83.87 | EPS CAGR: 38.61% | SUE: 1.04 | # QB: 1
Revenue Correlation: 99.96 | Revenue CAGR: 29.44% | SUE: 2.68 | # QB: 12
EPS current Quarter (2026-06-30): EPS=0.27 | Chg30d=+0.07% | Revisions=+0% | Analysts=29
EPS next Quarter (2026-09-30): EPS=0.32 | Chg30d=+0.19% | Revisions=+81% | Analysts=29
EPS current Year (2026-12-31): EPS=1.20 | Chg30d=+0.22% | Revisions=+88% | GrowthEPS=+28.8% | GrowthRev=+29.7%
EPS next Year (2027-12-31): EPS=1.57 | Chg30d=+3.19% | Revisions=+81% | GrowthEPS=+31.4% | GrowthRev=+27.6%
[Analyst] Revisions Ratio: +88%