Seek Returns

Cloudflare (NET) Stock Analysis

This is a peer-relative look at Cloudflare (NET): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Cloudflare (NET)
Profile ItemNET
NameCloudflare, Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryInternet Services & Infrastructure
Market Capitalization96.32 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateSeptember 13, 2019
Security TypeCommon Stock

Price Performance

Cumulative Growth

NET
GSPC
Loading price history…
Cloudflare (NET) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Cloudflare (NET) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Cloudflare (NET) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
Total Return (1Y)27.13%-3.00%
Total Return (3Y, Annualized)68.21%8.28%
Total Return (5Y, Annualized)7.66%-7.91%

Risk Profile

Drawdown History

NET
GSPC
Loading price history…
Cloudflare (NET) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Cloudflare (NET) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
Volatility (1Y, Annualized)67.16%61.69%
Beta (5Y)1.341.06
Max Drawdown (5Y)-82.58%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NET is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
Sharpe Ratio (1Y)0.34-0.13
Sortino Ratio (1Y)0.48-0.19

Profitability

ROE (TTM)

Cloudflare (NET) has negative ROE of -17.00%. That can come from trailing losses or negative book equity, so it is a warning state rather than a clean capital-efficiency measure.

NET

Software & Services industry group

-17.00%

Group distribution
Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
NET
-17.00%
Min
-50.52%
Largest peers
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
SAP
18.18%
PANW
1.74%
NET
-17.00%
Loading chart…
Where Cloudflare (NET) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Cloudflare (NET) has negative net margin of -8.75%. The trailing period ended in a net loss, so the bottom-line conversion read is a warning rather than a profitability strength.

NET

Software & Services industry group

-8.75%

Group distribution
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
NET
-8.75%
Min
-33.17%
Largest peers
PLTR
50.34%
MSFT
41.17%
ORCL
26.36%
SAP
20.41%
IBM
15.99%
PANW
2.67%
NET
-8.75%
Loading chart…
Where Cloudflare (NET) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Cloudflare (NET) has negative operating margin of -7.27%. Core operations were loss-making before interest and taxes over the trailing period.

NET

Software & Services industry group

-7.27%

Group distribution
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
NET
-7.27%
Min
-30.45%
Largest peers
MSFT
49.76%
PLTR
46.89%
ORCL
35.63%
SAP
29.50%
IBM
16.97%
PANW
5.40%
NET
-7.27%
Loading chart…
Where Cloudflare (NET) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
ROE (TTM)-17.00%6.59%
ROA (TTM)-2.00%2.45%
Net Margin (TTM)-8.75%4.63%
Operating Margin (TTM)-7.27%8.73%
Gross Margin (TTM)71.90%70.07%

Growth

Revenue Growth

Cloudflare (NET) grew revenue 29.85%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

Loading chart…
Cloudflare (NET): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

No usable EPS growth is available for Cloudflare (NET) this period, so the earnings-momentum read is skipped.

Loading chart…
Cloudflare (NET) doesn't report EPS Growth this period; the bars show the Software & Services industry-group medians on their own.

Growth Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
Revenue Growth (YoY)29.85%14.22%
Revenue Growth (3Y CAGR)30.51%13.52%
EPS Growth (YoY)--7.85%
EPS Growth (3Y CAGR)--18.19%

Financial Strength

Current Ratio (MRQ)

Cloudflare (NET) has current ratio of 3.80, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

NET

Software & Services industry group

3.80

Group distribution
Max
5.11
NET
3.80
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
Largest peers
PLTR
7.10
NET
3.80
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
Loading chart…
Where Cloudflare (NET) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Cloudflare (NET) has debt-to-equity ratio of 3.21, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

NET

Software & Services industry group

3.21

Group distribution
NET
3.21
Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
Largest peers
NET
3.21
ORCL
2.52
IBM
1.85
MSFT
0.28
SAP
0.23
PANW
0.09
PLTR
0.02
Loading chart…
Where Cloudflare (NET) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
Current Ratio (MRQ)3.801.67
Debt / Equity (MRQ)3.210.40
Net Debt / EBITDA--0.17

Dividends

Dividend Yield (TTM)

Cloudflare (NET) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

NET

Software & Services industry group

0.00%

Group distribution
NET
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.73%
ORCL
1.74%
SAP
1.03%
MSFT
0.69%
NET
0.00%
PLTR
0.00%
PANW
0.00%
Loading chart…
Where Cloudflare (NET) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Cloudflare (NET) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

NET

Software & Services industry group

0.00%

Group distribution
NET
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
57.51%
SAP
36.45%
ORCL
31.35%
MSFT
19.00%
NET
0.00%
PLTR
0.00%
PANW
0.00%
Loading chart…
Where Cloudflare (NET) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

No usable P/E ratio is available for Cloudflare (NET) this period, so the trailing-earnings valuation read is skipped.

NET

Software & Services industry group

--

Group distribution
Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
NET
--
Largest peers
PANW
784.60
PLTR
112.94
SAP
29.07
MSFT
27.69
IBM
20.90
ORCL
18.20
NET
--
Loading chart…
Cloudflare (NET) doesn’t report P/E ratio this period; the box shows the Software & Services group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Cloudflare (NET) trades at 35.24 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

NET

Software & Services industry group

35.24

Group distribution
NET
35.24
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
NET
35.24
PANW
22.37
MSFT
11.37
SAP
6.84
ORCL
5.04
IBM
3.31
Loading chart…
Where Cloudflare (NET) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Cloudflare (NET) trades at 65.73 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

NET

Software & Services industry group

65.73

Group distribution
NET
65.73
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
Largest peers
SAP
73.25
NET
65.73
PLTR
34.41
PANW
9.30
MSFT
8.38
IBM
6.52
ORCL
5.68
Loading chart…
Where Cloudflare (NET) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Cloudflare (NET) metric values compared with Software & Services industry-group medians
MetricCurrent stock: NETIndustry group median
P/E Ratio (TTM)--32.91
P/S Ratio (TTM)35.244.25
P/B Ratio (MRQ)65.734.30
Free Cash Flow Yield (TTM)0.83%3.98%