Roku, Inc. cash flow to debt ratio of 55.49% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Roku, Inc.'s free cash flow has increased 124.64% from $212.98M last year to $478.44M, signaling increasing performance

Roku, Inc.'s debt to equity ratio is 0.14, which means that the company's assets are healthy financed, signaling financial stability.

Roku, Inc.'s debt has decreased relative to shareholder equity from 0.24 last year to 0.14 today, signaling strengthened financials

Roku, Inc. has a net cash position, so leverage is healthy.

Roku, Inc.'s interest coverage ratio of 129.44 indicates that earnings with good margin can cover interest payments on company debt

Roku, Inc.'s profit margin has increased (-316.76%) in the last year from -3.15% to 6.82%, signaling increasing performance

Roku, Inc.'s short-term assets of $3.40B exceed its short-term liabilities of $1.24B

Roku, Inc.'s return on assets of 7.77% is higher than the 5.00% threshold, indicating efficient asset utilization

Roku, Inc.'s return on equity of 13.18%, is lower than 15.00%, indicating bad performance

Roku, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Roku, Inc. had positive net income in only 2 out of 5 years, indicating unstable earnings

Roku, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Roku, Inc. has a free cash flow yield of 2.12%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Roku, Inc.'s yearly earnings has increased -168.29% since last year from $-129.39M to $88.36M, signaling increasing performance

Roku, Inc.'s yearly revenue has increased 15.18% since last year from $4.11B to $4.74B, signaling increasing performance

ROIC 7.56% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Roku, Inc.'s 3-year revenue CAGR of 14.86% is positive, indicating growing revenue over the past 3 years

Roku, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Roku, Inc. had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Roku, Inc. is overvalued relative to its fair value price of 62.46 based on Discounted Cash Flow model

Roku, Inc. has an earnings yield of 1.58%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Roku, Inc. is overvalued relative to its fair value price of 20.76 based on EBITDA multiple model

Roku, Inc. has an EV/EBITDA ratio of 48.30x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Roku, Inc. is overvalued relative to its fair value price of -32.23 based on Earnings Fair Value model

Roku, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Roku, Inc. has a price-to-book ratio of 7.96x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Roku, Inc. has a price-to-sales ratio of 4.31x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue