(NET) Cloudflare - Overview
Stock: CDN, WAF, DNS, Zero-Trust, Workers
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 50.2% |
| Relative Tail Risk | -9.44% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.67 |
| Alpha | 5.91 |
| Character TTM | |
|---|---|
| Beta | 1.632 |
| Beta Downside | 1.609 |
| Drawdowns 3y | |
|---|---|
| Max DD | 45.00% |
| CAGR/Max DD | 0.99 |
Description: NET Cloudflare January 27, 2026
Cloudflare, Inc. (NYSE: NET) is a global cloud-services platform that bundles security, performance, networking, and developer tools into a single, edge-native architecture. Its portfolio spans web-application firewalls, DDoS mitigation, API protection, DNS and CDN services, Zero-Trust networking (SASE), and a suite of serverless developer products such as Workers, R2 storage, and AI-enabled APIs. The company serves a cross-industry client base-including technology, finance, healthcare, and government-through both enterprise contracts and consumer offerings like the 1.1.1.1 DNS resolver and WARP VPN.
Key recent metrics (FY 2023): revenue reached **$1.03 billion**, up **31 % YoY**, driven by a **71 % gross margin** and a **~2,600-company paid-customer base** that generated **$1.5 billion in annual recurring revenue**. Net loss narrowed to $-$95 million, reflecting higher operating leverage as the platform scales. The company’s cash position stood at $-$250 million, with a runway extending into 2025 under current cash-flow trends.
Sector dynamics that underpin Cloudflare’s growth include the rapid expansion of edge computing-projected to grow at a **~20 % CAGR through 2030**-and sustained acceleration in cybersecurity spending, which is rising **~12 % YoY** globally. Adoption of Zero-Trust architectures and the shift of workloads to distributed cloud environments further amplify demand for integrated security-performance solutions like those Cloudflare offers.
For a deeper quantitative view, consider reviewing Cloudflare’s data on ValueRay to complement your analysis.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: -103.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA -1.81 > 1.0 |
| NWC/Revenue: 114.9% < 20% (prev 96.83%; Δ 18.08% < -1%) |
| CFO/TA 0.09 > 3% & CFO 540.0m > Net Income -103.0m |
| Net Debt (2.45b) to EBITDA (138.8m): 17.65 < 3 |
| Current Ratio: 2.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (342.4m) vs 12m ago 0.0% < -2% |
| Gross Margin: 75.19% > 18% (prev 0.77%; Δ 7441 % > 0.5%) |
| Asset Turnover: 45.50% > 50% (prev 51.33%; Δ -5.83% > 0%) |
| Interest Coverage Ratio: -11.70 > 6 (EBITDA TTM 138.8m / Interest Expense TTM 7.32m) |
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 -1.19b / Total Assets 5.79b) |
| C: -0.02 (EBIT TTM -85.7m / Avg Total Assets 4.42b) |
| D: -0.27 (Book Value of Equity -1.18b / Total Liabilities 4.44b) |
| Altman-Z'' Score: 1.54 = BB |
Beneish M -3.03
| DSRI: 1.10 (Receivables 374.5m/266.4m, Revenue 2.01b/1.57b) |
| GMI: 1.03 (GM 75.19% / 77.49%) |
| AQI: 0.66 (AQ_t 0.08 / AQ_t-1 0.11) |
| SGI: 1.28 (Revenue 2.01b / 1.57b) |
| TATA: -0.11 (NI -103.0m - CFO 540.0m) / TA 5.79b) |
| Beneish M-Score: -3.03 (Cap -4..+1) = AA |
What is the price of NET shares?
Over the past week, the price has changed by +2.25%, over one month by -11.16%, over three months by -20.29% and over the past year by +29.21%.
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 | 232 | 30.8% |
| Analysts Target Price | 232 | 30.8% |
| ValueRay Target Price | 193.7 | 9.2% |
NET Fundamental Data Overview January 24, 2026
P/S = 30.1502
P/B = 44.1994
P/EG = 2.3548
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 = 63.15b USD (60.70b + Debt 3.50b - CCE 1.05b)
Interest Coverage Ratio = -11.70 (Ebit TTM -85.7m / Interest Expense TTM 7.32m)
EV/FCF = 291.9x (Enterprise Value 63.15b / FCF TTM 216.4m)
FCF Yield = 0.34% (FCF TTM 216.4m / Enterprise Value 63.15b)
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 = 10.91 (Enterprise Value 63.15b / Total Assets 5.79b)
Interest Expense / Debt = 0.08% (Interest Expense 2.91m / Debt 3.50b)
Taxrate = 21.0% (US default 21%)
NOPAT = -67.7m (EBIT -85.7m * (1 - 21.00%)) [loss with tax shield]
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 = -2.33% (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 = -1.91% (negative operating profit) (NOPAT -67.7m / Invested Capital 3.54b)
WACC = 11.28% (E(60.70b)/V(64.21b) * Re(11.93%) + D(3.50b)/V(64.21b) * Rd(0.08%) * (1-Tc(0.21)))
Discount Rate = 11.93% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.85%
[DCF Debug] Terminal Value 70.60% ; FCFF base≈197.8m ; Y1≈234.6m ; Y5≈365.2m
Fair Price DCF = 4.03 (EV 3.72b - Net Debt 2.45b = Equity 1.27b / Shares 315.3m; r=11.28% [WACC]; 5y FCF grow 19.87% → 2.90% )
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=0.26 | Chg30d=+0.002 | Revisions Net=+12 | Analysts=24
EPS next Year (2026-12-31): EPS=1.18 | Chg30d=+0.005 | Revisions Net=+24 | Growth EPS=+29.4% | Growth Revenue=+27.6%