Is Roku Stock a Good Investment?
Roku Investment Advice | ROKU |
- Examine Roku's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Roku's leadership team and their track record. Good management can help Roku navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Roku's business and its evolving consumer preferences.
- Compare Roku's performance and market position to its competitors. Analyze how Roku is positioned in terms of product offerings, innovation, and market share.
- Check if Roku pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Roku's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Roku Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Roku Inc is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Roku Stock
Researching Roku's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 85.0% of the company shares are owned by institutional investors. The book value of Roku was at this time reported as 17.08. The company recorded a loss per share of 0.89. Roku Inc had not issued any dividends in recent years.
To determine if Roku is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Roku's research are outlined below:
| Roku Inc generated a negative expected return over the last 90 days | |
| Roku Inc has high historical volatility and very poor performance | |
| The company reported the previous year's revenue of 4.11 B. Net Loss for the year was (129.39 M) with profit before overhead, payroll, taxes, and interest of 1.81 B. | |
| Over 85.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Roku, Inc. Among Top Stocks to Buy from Ark Invests Portfolio |
Roku Quarterly Accounts Payable |
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Roku uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Roku Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Roku's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Roku's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Roku's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-02-21 | 2018-12-31 | 0.03 | 0.05 | 0.02 | 66 | ||
2018-11-07 | 2018-09-30 | -0.12 | -0.09 | 0.03 | 25 | ||
2019-11-06 | 2019-09-30 | -0.27 | -0.22 | 0.05 | 18 | ||
2022-02-17 | 2021-12-31 | 0.09 | 0.17 | 0.08 | 88 | ||
2018-05-09 | 2018-03-31 | -0.15 | -0.07 | 0.08 | 53 | ||
2022-07-28 | 2022-06-30 | -0.69 | -0.82 | -0.13 | 18 | ||
2019-08-07 | 2019-06-30 | -0.22 | -0.08 | 0.14 | 63 | ||
2020-08-05 | 2020-06-30 | -0.5 | -0.35 | 0.15 | 30 |
Roku Target Price Consensus
Roku target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Roku's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 30 | Buy |
Most Roku analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Roku stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Roku Inc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationRoku Target Price Projection
Roku's current and average target prices are 72.14 and 79.55, respectively. The current price of Roku is the price at which Roku Inc is currently trading. On the other hand, Roku's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Roku Target Price
Roku Analyst Ratings
Roku's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Roku stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Roku's financials, market performance, and future outlook by experienced professionals. Roku's historical ratings below, therefore, can serve as a valuable tool for investors.Know Roku's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Roku is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Roku Inc backward and forwards among themselves. Roku's institutional investor refers to the entity that pools money to purchase Roku's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Renaissance Technologies Corp | 2024-12-31 | 1.3 M | Jacobs Levy Equity Management, Inc. | 2024-12-31 | 1.3 M | Citadel Advisors Llc | 2024-12-31 | 1.3 M | Two Sigma Investments Llc | 2024-12-31 | 1.2 M | Cadian Capital Management Lp | 2024-12-31 | 1.2 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 1.1 M | Westfield Capital Management Company, L.p. | 2024-12-31 | 1.1 M | Ubs Group Ag | 2024-12-31 | 1 M | Charles Schwab Investment Management Inc | 2024-12-31 | 990.9 K | Fmr Inc | 2024-12-31 | 19.2 M | Vanguard Group Inc | 2024-12-31 | 12.2 M |
Roku's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 9.83 B.Market Cap |
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Roku's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.03) | (0.03) | |
| Return On Capital Employed | (0.07) | (0.07) | |
| Return On Assets | (0.03) | (0.03) | |
| Return On Equity | (0.05) | (0.05) |
Determining Roku's profitability involves analyzing its financial statements and using various financial metrics to determine if Roku is a good buy. For example, gross profit margin measures Roku's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Roku's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Roku's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Roku Inc. Check Roku's Beneish M Score to see the likelihood of Roku's management manipulating its earnings.
Evaluate Roku's management efficiency
Roku Inc has return on total asset (ROA) of (0.0273) % which means that it has lost $0.0273 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0537) %, meaning that it created substantial loss on money invested by shareholders. Roku's management efficiency ratios could be used to measure how well Roku manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.03 in 2025. Return On Capital Employed is likely to drop to -0.07 in 2025. Change To Liabilities is likely to gain to about 218.9 M in 2025, whereas Total Current Liabilities is likely to drop slightly above 632.5 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 17.24 | 18.10 | |
| Tangible Book Value Per Share | 15.93 | 16.72 | |
| Enterprise Value Over EBITDA | 41.41 | 43.48 | |
| Price Book Value Ratio | 4.31 | 6.06 | |
| Enterprise Value Multiple | 41.41 | 43.48 | |
| Price Fair Value | 4.31 | 6.06 | |
| Enterprise Value | 10.4 B | 9.3 B |
Understanding the management dynamics of Roku Inc allows us to gauge its ability to sustain growth and profitability. This comprehensive analysis aids in determining the stock's value.
Beta 2.118 |
Basic technical analysis of Roku Stock
As of the 20th of March, Roku holds the Variance of 13.2, coefficient of variation of (1,579), and Risk Adjusted Performance of (0.05). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Roku, as well as the relationship between them.Roku's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Roku insiders, such as employees or executives, is commonly permitted as long as it does not rely on Roku's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Roku insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Roku's Outstanding Corporate Bonds
Roku issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Roku Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Roku bonds can be classified according to their maturity, which is the date when Roku Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Roku's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Roku's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 2.76 | |||
| Coefficient Of Variation | (1,579) | |||
| Standard Deviation | 3.63 | |||
| Variance | 13.2 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | 0.1598 | |||
| Treynor Ratio | (0.16) | |||
| Maximum Drawdown | 21.34 | |||
| Value At Risk | (5.88) | |||
| Potential Upside | 5.25 | |||
| Skewness | 0.8574 | |||
| Kurtosis | 2.48 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 2.76 | |||
| Coefficient Of Variation | (1,579) | |||
| Standard Deviation | 3.63 | |||
| Variance | 13.2 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | 0.1598 | |||
| Treynor Ratio | (0.16) | |||
| Maximum Drawdown | 21.34 | |||
| Value At Risk | (5.88) | |||
| Potential Upside | 5.25 | |||
| Skewness | 0.8574 | |||
| Kurtosis | 2.48 |
Consider Roku's intraday indicators
Roku intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Roku stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Roku Corporate Filings
F4 | 5th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 14th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 13th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 12th of February 2025 Other Reports | ViewVerify |
Roku Stock media impact
Far too much social signal, news, headlines, and media speculation about Roku that are available to investors today. That information is available publicly through Roku media outlets and privately through word of mouth or via Roku internal channels. However, regardless of the origin, that massive amount of Roku data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Roku news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Roku relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Roku's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Roku alpha.
Roku Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Roku can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Roku Inc Historical Investor Sentiment
Investor biases related to Roku's public news can be used to forecast risks associated with an investment in Roku. The trend in average sentiment can be used to explain how an investor holding Roku can time the market purely based on public headlines and social activities around Roku Inc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Roku's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Roku and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Roku news discussions. The higher the estimate score, the more favorable the investor's outlook on Roku.
Roku Maximum Pain Price Across June 20th 2025 Option Contracts
Roku's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Roku close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Roku's options.
Roku Corporate Management
| Matthew Banks | Corporate VP | Profile | |
| Kamilah MitchellThomas | VP People | Profile | |
| Stephen JD | Executive Officer | Profile | |
| Gilbert Fuchsberg | Partnerships Subscriptions | Profile | |
| Ilya Asnis | Senior OS | Profile |
Additional Tools for Roku Stock Analysis
When running Roku's price analysis, check to measure Roku's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Roku is operating at the current time. Most of Roku's value examination focuses on studying past and present price action to predict the probability of Roku's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Roku's price. Additionally, you may evaluate how the addition of Roku to your portfolios can decrease your overall portfolio volatility.