(NET) Cloudflare - Ratings and Ratios
CDN, Firewall, DNS, VPN, Workers
NET EPS (Earnings per Share)
NET Revenue
Description: NET Cloudflare
Cloudflare, Inc. (NYSE: NET) is a global cloud-services platform that bundles security, performance, and networking functions into a single, SaaS-delivered suite. Its product portfolio spans edge-based web-application firewall, bot management, DDoS mitigation, API protection, SSL/TLS encryption, and rate-limiting; performance tools such as CDN, load balancing, DNS, smart routing, video streaming, and cache-reserve; a SASE (Secure Access Service Edge) offering that combines network-as-a-service (Magic WAN, Magic Transit, Magic Firewall, Spectrum) with Zero-Trust controls (Access, Gateway, Remote Browser Isolation, CASB, email security, DLP); and a developer-centric stack (Workers AI, Vectorize, AI Gateway, Workers, Pages, R2 object storage, KV, Durable Objects, D1, Hyperdrive, Stream, Images, Calls). Consumer-facing services include the 1.1.1.1 DNS resolver, WARP VPN, and a domain-registration registrar.
The company serves a diversified client base across technology, healthcare, financial services, consumer & retail, industrial, non-profit, and government sectors. By positioning its edge network as a universal platform, Cloudflare aims to lock in recurring revenue from both large enterprises and SMBs that need to secure and accelerate traffic from public cloud, private cloud, on-premises, SaaS, and IoT environments.
Key recent metrics (Q3 2024) show revenue of approximately $720 million, a year-over-year growth rate of ~30%, and annualized recurring revenue (ARR) near $4.5 billion, with gross margins around 78% and a narrowing net loss as operating efficiencies improve. The broader market is being driven by accelerating cyber-security spend (global forecasts expect CAGR > 10% through 2028), rapid adoption of edge computing and Zero-Trust architectures, and a shift toward subscription-based network services-all of which align with Cloudflare’s strategic positioning.
For a deeper quantitative assessment of Cloudflare’s valuation metrics, the ValueRay platform offers a concise data-sheet worth reviewing.
NET Stock Overview
| Market Cap in USD | 76,997m |
| Sub-Industry | Application Software |
| IPO / Inception | 2019-09-13 |
NET Stock Ratings
| Growth Rating | 83.4% |
| Fundamental | 39.3% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 99.6% |
| Analyst Rating | 3.91 of 5 |
NET Dividends
Currently no dividends paidNET Growth Ratios
| Growth Correlation 3m | 77% |
| Growth Correlation 12m | 91.6% |
| Growth Correlation 5y | 29.5% |
| CAGR 5y | 62.20% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.38 |
| CAGR/Mean DD 3y (Pain Ratio) | 4.26 |
| Sharpe Ratio 12m | 1.78 |
| Alpha | 104.57 |
| Beta | 1.989 |
| Volatility | 46.10% |
| Current Volume | 2168k |
| Average Volume 20d | 2168k |
| Stop Loss | 206.5 (-5%) |
| Signal | 0.42 |
Piotroski VR‑10 (Strict, 0-10) 1.0
| Net Income (-117.1m TTM) > 0 and > 6% of Revenue (6% = 112.9m TTM) |
| FCFTA 0.03 (>2.0%) and ΔFCFTA -2.25pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 188.6% (prev 101.3%; Δ 87.28pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 477.6m > Net Income -117.1m (YES >=105%, WARN >=100%) |
| Net Debt (1.94b) to EBITDA (136.9m) ratio: 14.20 <= 3.0 (WARN <= 3.5) |
| Current Ratio 5.14 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (347.5m) change vs 12m ago 2.01% (target <= -2.0% for YES) |
| Gross Margin 76.12% (prev 77.26%; Δ -1.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 44.38% (prev 50.66%; Δ -6.28pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -17.43 (EBITDA TTM 136.9m / Interest Expense TTM 5.84m) >= 6 (WARN >= 3) |
Altman Z'' 3.04
| (A) 0.64 = (Total Current Assets 4.41b - Total Current Liabilities 857.6m) / Total Assets 5.56b |
| (B) -0.21 = Retained Earnings (Balance) -1.19b / Total Assets 5.56b |
| (C) -0.02 = EBIT TTM -101.9m / Avg Total Assets 4.24b |
| (D) -0.27 = Book Value of Equity -1.17b / Total Liabilities 4.32b |
| Total Rating: 3.04 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 39.28
| 1. Piotroski 1.0pt = -4.0 |
| 2. FCF Yield 0.23% = 0.11 |
| 3. FCF Margin 9.52% = 2.38 |
| 4. Debt/Equity 2.79 = -0.46 |
| 5. Debt/Ebitda 14.20 = -2.50 |
| 6. ROIC - WACC (= -16.45)% = -12.50 |
| 7. RoE -10.00% = -1.67 |
| 8. Rev. Trend 99.87% = 7.49 |
| 9. EPS Trend 8.43% = 0.42 |
What is the price of NET shares?
Over the past week, the price has changed by -1.19%, over one month by -3.82%, over three months by +16.26% and over the past year by +131.75%.
Is Cloudflare a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of NET is around 232.40 USD . This means that NET is currently overvalued and has a potential downside of 6.91%.
Is NET a buy, sell or hold?
- 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 | 209 | -3.9% |
| Analysts Target Price | 209 | -3.9% |
| ValueRay Target Price | 269.1 | 23.8% |
Last update: 2025-10-11 05:03
NET Fundamental Data Overview
P/E Forward = 192.3077
P/S = 40.9247
P/B = 63.1228
P/EG = 2.3548
Beta = 1.989
Revenue TTM = 1.88b USD
EBIT TTM = -101.9m USD
EBITDA TTM = 136.9m USD
Long Term Debt = 3.26b USD (from longTermDebt, last quarter)
Short Term Debt = 56.8m USD (from shortTermDebt, last quarter)
Debt = 3.46b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.94b USD (from netDebt column, last quarter)
Enterprise Value = 78.94b USD (77.00b + Debt 3.46b - CCE 1.52b)
Interest Coverage Ratio = -17.43 (Ebit TTM -101.9m / Interest Expense TTM 5.84m)
FCF Yield = 0.23% (FCF TTM 179.2m / Enterprise Value 78.94b)
FCF Margin = 9.52% (FCF TTM 179.2m / Revenue TTM 1.88b)
Net Margin = -6.22% (Net Income TTM -117.1m / Revenue TTM 1.88b)
Gross Margin = 76.12% ((Revenue TTM 1.88b - Cost of Revenue TTM 449.3m) / Revenue TTM)
Gross Margin QoQ = 74.88% (prev 75.88%)
Tobins Q-Ratio = 14.19 (Enterprise Value 78.94b / Total Assets 5.56b)
Interest Expense / Debt = 0.04% (Interest Expense 1.52m / Debt 3.46b)
Taxrate = -6.68% (negative due to tax credits) (3.16m / -47.3m)
NOPAT = -108.7m (EBIT -101.9m * (1 - -6.68%)) [loss with tax shield] [negative tax rate / tax credits]
Current Ratio = 5.14 (Total Current Assets 4.41b / Total Current Liabilities 857.6m)
Debt / Equity = 2.79 (Debt 3.46b / totalStockholderEquity, last quarter 1.24b)
Debt / EBITDA = 14.20 (Net Debt 1.94b / EBITDA 136.9m)
Debt / FCF = 10.85 (Net Debt 1.94b / FCF TTM 179.2m)
Total Stockholder Equity = 1.17b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.10% (Net Income -117.1m / Total Assets 5.56b)
RoE = -10.00% (Net Income TTM -117.1m / Total Stockholder Equity 1.17b)
RoCE = -2.30% (EBIT -101.9m / Capital Employed (Equity 1.17b + L.T.Debt 3.26b))
RoIC = -3.68% (negative operating profit) (NOPAT -108.7m / Invested Capital 2.95b)
WACC = 12.77% (E(77.00b)/V(80.46b) * Re(13.34%) + D(3.46b)/V(80.46b) * Rd(0.04%) * (1-Tc(-0.07)))
Discount Rate = 13.34% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 1.61%
[DCF Debug] Terminal Value 61.87% ; FCFE base≈171.3m ; Y1≈175.5m ; Y5≈195.3m
Fair Price DCF = 5.37 (DCF Value 1.68b / Shares Outstanding 312.9m; 5y FCF grow 2.33% → 3.0% )
EPS Correlation: 8.43 | EPS CAGR: -23.39% | SUE: -4.0 | # QB: 0
Revenue Correlation: 99.87 | Revenue CAGR: 29.09% | SUE: 4.0 | # QB: 9
Additional Sources for NET Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle