Overview Dividends

(NET) Cloudflare - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US18915M1071

CDN, WAF, DNS, Zero-Trust, Workers

Application Software
Market Cap in USD: 67,895m

IPO / Inception: 2019-09-13
Return 12m vs S&P 500: 54.9%

EPS (Earnings per Share)

EPS CAGR: 154.05%
EPS Trend: 75.8%

Last SUE: 1.90
Qual. Beats: 2

Revenue

Rev. CAGR: 32.87%
Rev. Trend: 99.6%

Last SUE: 4.00
Qual. Beats: 10

Dividends

Currently no dividends paid

Risk via 5d forecast
Volatility	49.6%
Value at Risk 5%th	74.2%
Relative Tail Risk	-9.03%

Reward TTM
Sharpe Ratio	1.33
Alpha	52.92
CAGR/Max DD	1.46

Character TTM
Hurst Exponent	0.460
Beta	1.627
Beta Downside	1.766

Drawdowns 3y
Max DD	45.00%
Mean DD	14.05%
Median DD	11.87%

Description: NET Cloudflare December 02, 2025

Cloudflare (NASDAQ: NET) is a global cloud-services platform that bundles security, performance, and networking functions into a single, SaaS-delivered stack. Its product suite spans edge-based web application firewall, bot mitigation, DDoS protection, API security, SSL/TLS, and rate-limiting, as well as performance tools such as CDN, load balancing, DNS, smart routing, video streaming, and cache-reserve. The company also offers a Secure Access Service Edge (SASE) solution that combines Zero-Trust networking (Magic WAN, Magic Transit, Magic Firewall) with cloud-native network interconnects, plus a developer-centric portfolio (Workers AI, R2 object storage, Pages, D1 database, etc.) and consumer services like the 1.1.1.1 DNS resolver and WARP VPN.

Its customer base cuts across technology, healthcare, financial services, retail, industrial, non-profit, and government sectors, reflecting the broad applicability of edge-centric security and performance. Cloudflare’s revenue has accelerated to roughly $1.2 billion in FY 2023, with year-over-year growth of about 30 % and net-revenue retention exceeding 130 %, indicating strong upsell potential among existing accounts. The broader cybersecurity market is expanding at a ~10 % CAGR, while the shift toward edge computing and Zero-Trust architectures is a macro-driver that underpins Cloudflare’s addressable opportunity.

Assuming the company can sustain its current gross-margin trajectory (~70 %) and convert a larger share of its free-tier users to paid plans, earnings visibility should improve, but the high valuation multiples (price-to-sales > 30×) leave limited margin for error if growth slows or competition intensifies.

For a deeper dive into Cloudflare’s valuation metrics, you might explore the analysis on ValueRay.

Piotroski VR‑10 (Strict, 0-10) 2.5

Net Income (-103.0m TTM) > 0 and > 6% of Revenue (6% = 120.8m TTM)

FCFTA 0.04 (>2.0%) and ΔFCFTA -1.81pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 114.9% (prev 96.83%; Δ 18.08pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.09 (>3.0%) and CFO 540.0m > Net Income -103.0m (YES >=105%, WARN >=100%)

Net Debt (2.45b) to EBITDA (138.8m) ratio: 17.65 <= 3.0 (WARN <= 3.5)

Current Ratio 2.04 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (342.4m) change vs 12m ago 0.0% (target <= -2.0% for YES)

Gross Margin 75.19% (prev 77.49%; Δ -2.31pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 45.50% (prev 51.33%; Δ -5.83pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -11.70 (EBITDA TTM 138.8m / Interest Expense TTM 7.32m) >= 6 (WARN >= 3)

Altman Z'' 1.54

(A) 0.40 = (Total Current Assets 4.54b - Total Current Liabilities 2.22b) / Total Assets 5.79b

(B) -0.21 = Retained Earnings (Balance) -1.19b / Total Assets 5.79b

(D) -0.27 = Book Value of Equity -1.18b / Total Liabilities 4.44b

Total Rating: 1.54 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 45.09

1. Piotroski 2.50pt

2. FCF Yield 0.31%

3. FCF Margin 10.75%

4. Debt/Equity 2.60

5. Debt/Ebitda 17.65

6. ROIC - WACC (= -14.84)%

7. RoE -8.15%

8. Rev. Trend 99.56%

9. EPS Trend 75.85%

What is the price of NET shares?

As of December 26, 2025, the stock is trading at USD 202.66 with a total of 738,598 shares traded.
Over the past week, the price has changed by +4.56%, over one month by +2.62%, over three months by -7.12% and over the past year by +79.97%.

Is NET a buy, sell or hold?

Cloudflare has received a consensus analysts rating of 3.91. Therefore, it is recommended to buy NET.

Strong Buy: 14
Buy: 6
Hold: 12
Sell: 1
Strong Sell: 1

What are the forecasts/targets for the NET price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	241.7	19.3%
Analysts Target Price	241.7	19.3%
ValueRay Target Price	256	26.3%

NET Fundamental Data Overview December 20, 2025

Market Cap USD = 67.89b (67.89b USD * 1.0 USD.USD)
P/E Forward = 156.25
P/S = 33.722
P/B = 50.404
P/EG = 2.3548
Beta = 1.949
Revenue TTM = 2.01b USD
EBIT TTM = -85.7m USD
EBITDA TTM = 138.8m USD
Long Term Debt = 1.97b USD (from longTermDebt, last quarter)
Short Term Debt = 1.36b USD (from shortTermDebt, last quarter)
Debt = 3.50b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.45b USD (from netDebt column, last quarter)
Enterprise Value = 70.34b USD (67.89b + Debt 3.50b - CCE 1.05b)
Interest Coverage Ratio = -11.70 (Ebit TTM -85.7m / Interest Expense TTM 7.32m)
FCF Yield = 0.31% (FCF TTM 216.4m / Enterprise Value 70.34b)
FCF Margin = 10.75% (FCF TTM 216.4m / Revenue TTM 2.01b)
Net Margin = -5.12% (Net Income TTM -103.0m / Revenue TTM 2.01b)
Gross Margin = 75.19% ((Revenue TTM 2.01b - Cost of Revenue TTM 499.6m) / Revenue TTM)
Gross Margin QoQ = 73.97% (prev 74.88%)
Tobins Q-Ratio = 12.16 (Enterprise Value 70.34b / Total Assets 5.79b)
Interest Expense / Debt = 0.08% (Interest Expense 2.91m / Debt 3.50b)
Taxrate = 169.7% (out of range, set to none) (3.14m / 1.85m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 2.04 (Total Current Assets 4.54b / Total Current Liabilities 2.22b)
Debt / Equity = 2.60 (Debt 3.50b / totalStockholderEquity, last quarter 1.35b)
Debt / EBITDA = 17.65 (Net Debt 2.45b / EBITDA 138.8m)
Debt / FCF = 11.32 (Net Debt 2.45b / FCF TTM 216.4m)
Total Stockholder Equity = 1.26b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.78% (Net Income -103.0m / Total Assets 5.79b)
RoE = -8.15% (Net Income TTM -103.0m / Total Stockholder Equity 1.26b)
RoCE = -2.65% (EBIT -85.7m / Capital Employed (Equity 1.26b + L.T.Debt 1.97b))
RoIC = -3.41% (negative operating profit) (EBIT -85.7m / (Assets 5.79b - Curr.Liab 2.22b - Cash 1.05b))
WACC = 11.42% (E(67.89b)/V(71.40b) * Re(12.01%) + (debt cost/tax rate unavailable))
Discount Rate = 12.01% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.85%
[DCF Debug] Terminal Value 68.85% ; FCFE base≈197.8m ; Y1≈234.6m ; Y5≈365.8m
Fair Price DCF = 10.93 (DCF Value 3.45b / Shares Outstanding 315.3m; 5y FCF grow 19.87% → 3.0% )
EPS Correlation: 75.85 | EPS CAGR: 154.0% | SUE: 1.90 | # QB: 2
Revenue Correlation: 99.56 | Revenue CAGR: 32.87% | SUE: 4.0 | # QB: 10
EPS next Quarter (2026-03-31): EPS=0.25 | Chg30d=+0.001 | Revisions Net=+12 | Analysts=24
EPS next Year (2026-12-31): EPS=1.18 | Chg30d=+0.004 | Revisions Net=+24 | Growth EPS=+28.8% | Growth Revenue=+27.5%

Additional Sources for NET Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle