(NET) Cloudflare - Overview

Sector: Technology | Industry: Software - Infrastructure | Exchange: NYSE (USA) | Market Cap: 74.274m USD | Total Return: 33.6% in 12m

Network Security, Content Delivery, Cloud Computing, Zero Trust
Total Rating 61
Safety 77
Buy Signal 0.39
Software - Infrastructure
Industry Rotation: +9.3
Market Cap: 74.3B
Avg Turnover: 713M
Risk 3d forecast
Volatility52.5%
VaR 5th Pctl8.57%
VaR vs Median-0.97%
Reward TTM
Sharpe Ratio0.77
Rel. Str. IBD74.3
Rel. Str. Peer Group84
Character TTM
Beta1.577
Beta Downside1.452
Hurst Exponent0.357
Drawdowns 3y
Max DD45.00%
CAGR/Max DD1.18
CAGR/Mean DD3.58
EPS (Earnings per Share) EPS (Earnings per Share) of NET over the last years for every Quarter: "2021-03": -0.03, "2021-06": -0.02, "2021-09": -0.3412, "2021-12": -0.2419, "2022-03": 0.01, "2022-06": -0.1954, "2022-09": 0.06, "2022-12": 0.06, "2023-03": 0.08, "2023-06": 0.1, "2023-09": 0.16, "2023-12": 0.15, "2024-03": 0.16, "2024-06": 0.2, "2024-09": 0.2, "2024-12": 0.19, "2025-03": 0.16, "2025-06": 0.21, "2025-09": 0.27, "2025-12": 0.28, "2026-03": 0.25,
EPS CAGR: 44.60%
EPS Trend: 93.9%
Last SUE: 1.04
Qual. Beats: 1
Revenue Revenue of NET over the last years for every Quarter: 2021-03: 138.055, 2021-06: 152.428, 2021-09: 172.347, 2021-12: 193.596, 2022-03: 212.167, 2022-06: 234.517, 2022-09: 253.857, 2022-12: 274.7, 2023-03: 290.175, 2023-06: 308.494, 2023-09: 335.603, 2023-12: 362.473, 2024-03: 378.602, 2024-06: 400.996, 2024-09: 430.082, 2024-12: 459.946, 2025-03: 479.087, 2025-06: 512.316, 2025-09: 562.027, 2025-12: 614.507, 2026-03: 639.755,
Rev. CAGR: 29.44%
Rev. Trend: 100.0%
Last SUE: 2.68
Qual. Beats: 12

Warnings

Interest Coverage Ratio -11.1 is critical

Volatile

Tailwinds

Idiosyncratic Leader, Confidence

Description: NET Cloudflare

Cloudflare, Inc. (NET) is a global cloud services provider specializing in security, performance, and reliability solutions for internet-connected infrastructure. The company’s integrated platform secures diverse environments, including public/private clouds, on-premises hardware, and IoT devices, through a suite of web application firewalls, DDoS mitigation, and zero-trust security services.

Operating within the edge computing and cybersecurity sectors, Cloudflare utilizes a software-defined network architecture that allows it to deploy code and security protocols closer to the end-user. This business model reduces latency and improves application performance by bypassing traditional centralized data center bottlenecks. The company also provides developer tools for serverless computing and AI-integrated applications.

For a more detailed breakdown of the companys financial health and growth prospects, you may wish to consult ValueRay. Cloudflare serves a broad client base across the technology, healthcare, financial, and government sectors from its headquarters in San Francisco, California.

Headlines to Watch Out For
  • Enterprise adoption of Zero Trust security architecture accelerates high-margin subscription revenue
  • Expansion of Workers AI platform captures developer demand for edge computing workflows
  • Large customer growth and net retention rates dictate long-term valuation multiples
  • High research and development spending pressures path to consistent GAAP profitability
  • Geopolitical tensions increase demand for sovereign cloud and data localization solutions
Piotroski VR-10 (Strict) 5.0
Net Income: -86.7m TTM > 0 and > 6% of Revenue
FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.19 > 1.0
NWC/Revenue: 98.99% < 20% (prev 101.9%; Δ -2.89% < -1%)
CFO/TA 0.11 > 3% & CFO 702.4m > Net Income -86.7m
Net Debt (-393.6m) to EBITDA (257.7m): -1.53 < 3
Current Ratio: 1.96 > 1.5 & < 3
Outstanding Shares: last quarter (352.6m) vs 12m ago 2.00% < -2%
Gross Margin: 73.48% > 18% (prev 0.77%; Δ 7.27k% > 0.5%)
Asset Turnover: 47.11% > 50% (prev 47.57%; Δ -0.45% > 0%)
Interest Coverage Ratio: -11.15 > 6 (EBITDA TTM 257.7m / Interest Expense TTM 9.89m)
Altman Z'' 1.37
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: -0.02 (EBIT TTM -110.2m / Avg Total Assets 4.94b)
D: -0.27 (Book Value of Equity -1.23b / Total Liabilities 4.64b)
Altman-Z'' = 1.37 = BB
Beneish M -2.96
DSRI: 1.02 (Receivables 403.7m/302.3m, Revenue 2.33b/1.77b)
GMI: 1.05 (GM 73.48% / 76.86%)
AQI: 0.85 (AQ_t 0.09 / AQ_t-1 0.11)
SGI: 1.32 (Revenue 2.33b / 1.77b)
TATA: -0.13 (NI -86.7m - CFO 702.4m) / TA 6.16b)
Beneish M = -2.96 (Cap -4..+1) = A
What is the price of NET shares?

As of May 25, 2026, the stock is trading at USD 216.17 with a total of 2,108,826 shares traded.
Over the past week, the price has changed by +9.42%, over one month by +4.39%, over three months by +31.96% and over the past year by +33.64%.

Is NET a buy, sell or hold?

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

What are the forecasts/targets for the NET price?
Analysts Target Price 234.2 8.3%
Cloudflare (NET) - Fundamental Data Overview as of 23 May 2026
Market Cap USD = 74.3b (74.3b USD * 1.0 USD.USD)
P/E Forward = 166.6667
P/S = 31.3802
P/B = 46.7095
P/EG = 2.3774
Revenue TTM = 2.33b USD
EBIT TTM = -110.2m USD
EBITDA TTM = 257.7m 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 = 73.9b USD (74.3b + Debt 3.78b - CCE 4.17b)
Interest Coverage Ratio = -11.15 (Ebit TTM -110.2m / Interest Expense TTM 9.89m)
EV/FCF = 195.2x (Enterprise Value 73.9b / FCF TTM 378.5m)
FCF Yield = 0.51% (FCF TTM 378.5m / Enterprise Value 73.9b)
FCF Margin = 16.26% (FCF TTM 378.5m / Revenue TTM 2.33b)
Net Margin = -3.72% (Net Income TTM -86.7m / Revenue TTM 2.33b)
Gross Margin = 73.48% ((Revenue TTM 2.33b - Cost of Revenue TTM 617.5m) / Revenue TTM)
Gross Margin QoQ = 71.21% (prev 74.24%)
Tobins Q-Ratio = 11.99 (Enterprise Value 73.9b / Total Assets 6.16b)
Interest Expense / Debt = 0.26% (Interest Expense 9.89m / Debt 3.78b)
Taxrate = 21.0% (US default 21%)
NOPAT = -87.1m (EBIT -110.2m * (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 = -1.53 (Net Debt -393.6m / EBITDA 257.7m)
Debt / FCF = -1.04 (Net Debt -393.6m / FCF TTM 378.5m)
Total Stockholder Equity = 1.39b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.75% (Net Income -86.7m / Total Assets 6.16b)
RoE = -3.31% (Net Income TTM -86.7m / Total Stockholder Equity 2.62b)
RoCE = -2.40% (EBIT -110.2m / Capital Employed (Equity 2.62b + L.T.Debt 1.98b))
 RoIC = -1.72% (negative operating profit) (NOPAT -87.1m / Invested Capital 5.05b)
 WACC = 10.98% (E(74.3b)/V(78.1b) * Re(11.53%) + D(3.78b)/V(78.1b) * Rd(0.26%) * (1-Tc(0.21)))
Discount Rate = 11.53% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 85.40 | Cagr: 2.09%
[DCF] Terminal Value 69.95% ; FCFF base≈300.8m ; Y1≈344.8m ; Y5≈507.5m
[DCF] Fair Price = 17.53 (EV 5.21b - Net Debt -393.6m = Equity 5.60b / Shares 319.5m; r=10.98% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 93.90 | EPS CAGR: 44.60% | 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=+0.63% | Revisions=-5% | Analysts=29
EPS next Quarter (2026-09-30): EPS=0.32 | Chg30d=+6.84% | Revisions=+81% | Analysts=29
EPS current Year (2026-12-31): EPS=1.20 | Chg30d=+6.55% | Revisions=+88% | GrowthEPS=+28.5% | GrowthRev=+29.7%
EPS next Year (2027-12-31): EPS=1.53 | Chg30d=+5.78% | Revisions=+75% | GrowthEPS=+27.6% | GrowthRev=+27.5%
[Analyst] Revisions Ratio: +88%