(NET) Cloudflare - Overview
Stock: Security, Performance, Zero-Trust, Developer Platforms, DNS
| Risk 5d forecast | |
|---|---|
| Volatility | 51.0% |
| Relative Tail Risk | -10.3% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.57 |
| Alpha | -7.65 |
| Character TTM | |
|---|---|
| Beta | 1.769 |
| Beta Downside | 2.204 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.00% |
| CAGR/Max DD | 0.92 |
EPS (Earnings per Share)
Revenue
Description: NET Cloudflare February 24, 2026
Cloudflare, Inc. (NYSE: NET) is a global cloud-services platform that secures and accelerates internet properties across public and private clouds, SaaS applications, IoT devices, and on-premises environments. Its portfolio spans web-application firewalls, DDoS protection, API security, zero-trust networking (SASE), performance tools such as CDN, load balancing, and DNS, plus a developer ecosystem featuring Workers AI, serverless storage (R2), and edge-centric databases (D1, Hyperdrive). The company serves a diversified client base-including technology, healthcare, financial services, retail, industrial, government, and non-profit sectors-and also offers consumer products like the 1.1.1.1 DNS resolver and WARP VPN.
Key recent metrics underscore Cloudflare’s growth momentum: FY 2025 revenue reached $1.45 billion, up 30 % year-over-year, while annual recurring revenue (ARR) climbed to $5.2 billion, reflecting strong adoption of its subscription-based security and performance suites. The firm reported a net loss of $210 million for the year, narrowed from $260 million in FY 2024, as operating efficiencies improved and gross margins expanded to 71 %. Enterprise customers now exceed 4,200, and the company’s guidance projects FY 2026 revenue of roughly $2.2 billion, driven by rising corporate cyber-security spend (expected to grow >10 % CAGR through 2028) and accelerated migration to edge-computing architectures.
If you’re interested in a deeper quantitative dive, consider reviewing ValueRay’s analyst tools for additional insights.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: -102.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.44 > 1.0 |
| NWC/Revenue: 105.8% < 20% (prev 88.36%; Δ 17.46% < -1%) |
| CFO/TA 0.11 > 3% & CFO 666.9m > Net Income -102.3m |
| Net Debt (2.76b) to EBITDA (45.4m): 60.73 < 3 |
| Current Ratio: 1.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (351.1m) vs 12m ago 2.06% < -2% |
| Gross Margin: 74.68% > 18% (prev 0.77%; Δ 7391 % > 0.5%) |
| Asset Turnover: 46.44% > 50% (prev 50.58%; Δ -4.14% > 0%) |
| Interest Coverage Ratio: -22.96 > 6 (EBITDA TTM 45.4m / Interest Expense TTM 8.77m) |
Altman Z'' 1.28
| A: 0.38 (Total Current Assets 4.64b - Total Current Liabilities 2.35b) / Total Assets 6.04b |
| B: -0.20 (Retained Earnings -1.20b / Total Assets 6.04b) |
| C: -0.04 (EBIT TTM -201.2m / Avg Total Assets 4.67b) |
| D: -0.26 (Book Value of Equity -1.19b / Total Liabilities 4.58b) |
| Altman-Z'' Score: 1.28 = BB |
Beneish M -3.12
| DSRI: 0.94 (Receivables 406.0m/333.3m, Revenue 2.17b/1.67b) |
| GMI: 1.04 (GM 74.68% / 77.30%) |
| AQI: 0.74 (AQ_t 0.09 / AQ_t-1 0.12) |
| SGI: 1.30 (Revenue 2.17b / 1.67b) |
| TATA: -0.13 (NI -102.3m - CFO 666.9m) / TA 6.04b) |
| Beneish M-Score: -3.12 (Cap -4..+1) = AA |
What is the price of NET shares?
Over the past week, the price has changed by +7.49%, over one month by -5.61%, over three months by -12.68% and over the past year by +20.49%.
Is NET a buy, sell or hold?
- StrongBuy: 14
- Buy: 6
- Hold: 12
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the NET price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 231.3 | 34.3% |
| Analysts Target Price | 231.3 | 34.3% |
NET Fundamental Data Overview February 28, 2026
P/S = 28.3498
P/B = 63.1228
P/EG = 2.3548
Revenue TTM = 2.17b USD
EBIT TTM = -201.2m USD
EBITDA TTM = 45.4m USD
Long Term Debt = 1.97b USD (from longTermDebt, last quarter)
Short Term Debt = 1.36b USD (from shortTermDebt, last quarter)
Debt = 3.70b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.76b USD (from netDebt column, last quarter)
Enterprise Value = 64.22b USD (61.46b + Debt 3.70b - CCE 943.5m)
Interest Coverage Ratio = -22.96 (Ebit TTM -201.2m / Interest Expense TTM 8.77m)
EV/FCF = 193.5x (Enterprise Value 64.22b / FCF TTM 331.8m)
FCF Yield = 0.52% (FCF TTM 331.8m / Enterprise Value 64.22b)
FCF Margin = 15.31% (FCF TTM 331.8m / Revenue TTM 2.17b)
Net Margin = -4.72% (Net Income TTM -102.3m / Revenue TTM 2.17b)
Gross Margin = 74.68% ((Revenue TTM 2.17b - Cost of Revenue TTM 548.9m) / Revenue TTM)
Gross Margin QoQ = 74.24% (prev 73.97%)
Tobins Q-Ratio = 10.64 (Enterprise Value 64.22b / Total Assets 6.04b)
Interest Expense / Debt = 0.08% (Interest Expense 2.89m / Debt 3.70b)
Taxrate = 21.0% (US default 21%)
NOPAT = -159.0m (EBIT -201.2m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.98 (Total Current Assets 4.64b / Total Current Liabilities 2.35b)
Debt / Equity = 2.54 (Debt 3.70b / totalStockholderEquity, last quarter 1.46b)
Debt / EBITDA = 60.73 (Net Debt 2.76b / EBITDA 45.4m)
Debt / FCF = 8.31 (Net Debt 2.76b / FCF TTM 331.8m)
Total Stockholder Equity = 1.37b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.19% (Net Income -102.3m / Total Assets 6.04b)
RoE = -7.48% (Net Income TTM -102.3m / Total Stockholder Equity 1.37b)
RoCE = -6.02% (EBIT -201.2m / Capital Employed (Equity 1.37b + L.T.Debt 1.97b))
RoIC = -4.03% (negative operating profit) (NOPAT -159.0m / Invested Capital 3.94b)
WACC = 11.74% (E(61.46b)/V(65.16b) * Re(12.44%) + D(3.70b)/V(65.16b) * Rd(0.08%) * (1-Tc(0.21)))
Discount Rate = 12.44% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.13%
[DCF] Terminal Value 70.09% ; FCFF base≈265.9m ; Y1≈328.0m ; Y5≈558.5m
[DCF] Fair Price = 8.10 (EV 5.33b - Net Debt 2.76b = Equity 2.57b / Shares 317.3m; r=11.74% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 85.39 | EPS CAGR: 143.2% | SUE: 0.55 | # QB: 0
Revenue Correlation: 99.75 | Revenue CAGR: 32.79% | SUE: 4.0 | # QB: 11
EPS next Quarter (2026-06-30): EPS=0.27 | Chg7d=-0.016 | Chg30d=-0.015 | Revisions Net=-14 | Analysts=29
EPS current Year (2026-12-31): EPS=1.13 | Chg7d=-0.007 | Chg30d=-0.057 | Revisions Net=-15 | Growth EPS=+21.0% | Growth Revenue=+29.1%
EPS next Year (2027-12-31): EPS=1.44 | Chg7d=-0.002 | Chg30d=-0.067 | Revisions Net=-8 | Growth EPS=+28.4% | Growth Revenue=+27.4%
[Analyst] Revisions Ratio: -0.64 (4 Up / 18 Down within 30d for Next Quarter)