Cloudflare Profit Margin vs. Cash And Equivalents

NET Stock  USD 113.60  1.29  1.12%   
Based on the measurements of profitability obtained from Cloudflare's financial statements, Cloudflare may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Cloudflare's ability to earn profits and add value for shareholders.

Cloudflare Net Profit Margin

(0.15)

At this time, Cloudflare's Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 26.23 in 2024, whereas Days Sales Outstanding is likely to drop 43.70 in 2024. At this time, Cloudflare's Accumulated Other Comprehensive Income is comparatively stable compared to the past year. Net Interest Income is likely to gain to about 53.2 M in 2024, whereas Income Before Tax is likely to drop (186.8 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.620.7632
Significantly Down
Pretty Stable
For Cloudflare profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cloudflare to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cloudflare utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cloudflare's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cloudflare over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Cloudflare Stock please use our How to Invest in Cloudflare guide.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cloudflare. If investors know Cloudflare will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cloudflare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.28)
Revenue Per Share
4.629
Quarterly Revenue Growth
0.282
Return On Assets
(0.03)
Return On Equity
(0.11)
The market value of Cloudflare is measured differently than its book value, which is the value of Cloudflare that is recorded on the company's balance sheet. Investors also form their own opinion of Cloudflare's value that differs from its market value or its book value, called intrinsic value, which is Cloudflare's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cloudflare's market value can be influenced by many factors that don't directly affect Cloudflare's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cloudflare's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cloudflare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cloudflare's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Cloudflare Cash And Equivalents vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cloudflare's current stock value. Our valuation model uses many indicators to compare Cloudflare value to that of its competitors to determine the firm's financial worth.
Cloudflare is regarded fourth in profit margin category among its peers. It is rated below average in cash and equivalents category among its peers . At this time, Cloudflare's Net Loss is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cloudflare by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cloudflare Cash And Equivalents vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Cloudflare

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.06) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Cloudflare

Cash

 = 

Bank Deposits

+

Liquidities

 = 
204.18 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Cloudflare Cash And Equivalents Comparison

Cloudflare is currently under evaluation in cash and equivalents category among its peers.

Cloudflare Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cloudflare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cloudflare will eventually generate negative long term returns. The profitability progress is the general direction of Cloudflare's change in net profit over the period of time. It can combine multiple indicators of Cloudflare, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive IncomeM2.1 M
Net Interest Income50.6 M53.2 M
Interest Income56.3 M59.1 M
Operating Income-185.5 M-176.2 M
Net Loss-202 M-191.9 M
Income Before Tax-177.9 M-186.8 M
Total Other Income Expense Net7.6 MM
Net Loss-174 M-182.7 M
Net Loss-183.9 M-193.1 M
Income Tax Expense6.1 M6.4 M
Non Operating Income Net Other17.8 M18.7 M
Change To Netincome239.3 M251.3 M
Net Loss(0.55)(0.58)
Income Quality(1.38)(1.31)
Net Income Per E B T 1.03  1.12 

Cloudflare Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cloudflare. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cloudflare position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cloudflare's important profitability drivers and their relationship over time.

Use Cloudflare in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cloudflare position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cloudflare will appreciate offsetting losses from the drop in the long position's value.

Cloudflare Pair Trading

Cloudflare Pair Trading Analysis

The ability to find closely correlated positions to Cloudflare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cloudflare when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cloudflare - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cloudflare to buy it.
The correlation of Cloudflare is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cloudflare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cloudflare moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cloudflare can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cloudflare position

In addition to having Cloudflare in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Sovereign ETFs
Sovereign ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Sovereign ETFs theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sovereign ETFs Theme or any other thematic opportunities.
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Additional Tools for Cloudflare Stock Analysis

When running Cloudflare's price analysis, check to measure Cloudflare'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 Cloudflare is operating at the current time. Most of Cloudflare's value examination focuses on studying past and present price action to predict the probability of Cloudflare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cloudflare's price. Additionally, you may evaluate how the addition of Cloudflare to your portfolios can decrease your overall portfolio volatility.