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Roku (ROKU) Stock Analysis

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

Company Profile

Company profile fields for Roku (ROKU)
Profile ItemROKU
NameRoku, Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryEntertainment
GICS Sub-IndustryMovies & Entertainment
Market Capitalization23.93 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateSeptember 28, 2017
Security TypeCommon Stock

Price Performance

Cumulative Growth

ROKU
GSPC
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Roku (ROKU) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Roku (ROKU) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Roku (ROKU) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
Total Return (1Y)53.14%8.37%
Total Return (3Y, Annualized)24.44%9.50%
Total Return (5Y, Annualized)-10.44%-6.51%

Risk Profile

Drawdown History

ROKU
GSPC
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Roku (ROKU) 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

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Distribution of monthly total returns for Roku (ROKU) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
Volatility (1Y, Annualized)40.24%43.78%
Beta (5Y)2.060.92
Max Drawdown (5Y)-86.13%-69.17%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ROKU 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

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
Sharpe Ratio (1Y)1.210.10
Sortino Ratio (1Y)2.080.15

Profitability

ROE (TTM)

Roku (ROKU) posts ROE of 18.15%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

ROKU

Media & Entertainment industry group

18.15%

Group distribution
Max
49.92%
ROKU
18.15%
Q3
17.95%
Median
7.20%
Q1
-4.53%
Min
-26.31%
Largest peers
NFLX
53.46%
GOOGL
44.29%
GOOG
44.29%
SPOT
35.81%
META
32.26%
ROKU
18.15%
DIS
8.01%
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Where Roku (ROKU) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Roku (ROKU) keeps 9.34% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

ROKU

Media & Entertainment industry group

9.34%

Group distribution
Max
32.91%
Q3
11.75%
ROKU
9.34%
Median
5.04%
Q1
-4.17%
Min
-25.14%
Largest peers
GOOGL
50.03%
GOOG
50.03%
META
31.15%
NFLX
29.69%
SPOT
15.73%
ROKU
9.34%
DIS
8.70%
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Where Roku (ROKU) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Roku (ROKU) turns 11.90% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

ROKU

Media & Entertainment industry group

11.90%

Group distribution
Max
40.16%
Q3
18.72%
ROKU
11.90%
Median
8.63%
Q1
1.90%
Min
-22.08%
Largest peers
META
35.41%
NFLX
34.63%
GOOGL
31.81%
GOOG
31.81%
DIS
19.30%
SPOT
13.52%
ROKU
11.90%
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Where Roku (ROKU) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
ROE (TTM)18.15%7.20%
ROA (TTM)6.32%3.36%
Net Margin (TTM)9.34%5.04%
Operating Margin (TTM)11.90%8.63%
Gross Margin (TTM)45.34%50.97%

Growth

Revenue Growth

Roku (ROKU) grew revenue 15.18%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Roku (ROKU): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

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

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Roku (ROKU) doesn't report EPS Growth this period; the bars show the Media & Entertainment industry-group medians on their own.

Growth Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
Revenue Growth (YoY)15.18%4.57%
Revenue Growth (3Y CAGR)14.86%5.19%
EPS Growth (YoY)--1.00%
EPS Growth (3Y CAGR)--25.23%

Financial Strength

Current Ratio (MRQ)

Roku (ROKU) has current ratio of 2.70, 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.

ROKU

Media & Entertainment industry group

2.70

Group distribution
Max
4.69
ROKU
2.70
Q3
2.53
Median
1.52
Q1
0.95
Min
0.28
Largest peers
GOOGL
2.79
GOOG
2.79
ROKU
2.70
SPOT
2.13
META
1.90
NFLX
1.08
DIS
0.71
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Where Roku (ROKU) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Roku (ROKU) has debt-to-equity ratio of 0.13, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

ROKU

Media & Entertainment industry group

0.13

Group distribution
Max
3.65
Q3
1.69
Median
0.46
Q1
0.17
ROKU
0.13
Min
0.00
Largest peers
NFLX
0.60
META
0.42
DIS
0.39
GOOGL
0.22
GOOG
0.22
ROKU
0.13
SPOT
0.05
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Where Roku (ROKU) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
Current Ratio (MRQ)2.701.52
Debt / Equity (MRQ)0.130.46
Net Debt / EBITDA-3.051.29

Dividends

Dividend Yield (TTM)

Roku (ROKU) 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.

ROKU

Media & Entertainment industry group

0.00%

Group distribution
Max
1.33%
Q3
0.65%
ROKU
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
DIS
1.28%
META
0.35%
GOOG
0.31%
GOOGL
0.30%
ROKU
0.00%
NFLX
0.00%
SPOT
0.00%
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Where Roku (ROKU) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

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

ROKU

Media & Entertainment industry group

0.00%

Group distribution
Max
71.43%
Q3
28.98%
ROKU
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
DIS
30.93%
META
7.16%
GOOGL
4.49%
GOOG
4.49%
ROKU
0.00%
NFLX
0.00%
SPOT
0.00%
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Where Roku (ROKU) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Roku (ROKU) trades at P/E ratio of 46.26, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

ROKU

Media & Entertainment industry group

46.26

Group distribution
Max
51.21
ROKU
46.26
Q3
28.90
Median
17.98
Q1
11.53
Min
1.64
Largest peers
ROKU
46.26
SPOT
36.75
DIS
24.07
META
20.82
NFLX
18.33
GOOGL
14.87
GOOG
14.83
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Where Roku (ROKU) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Roku (ROKU) trades at 4.35 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

ROKU

Media & Entertainment industry group

4.35

Group distribution
Max
7.43
ROKU
4.35
Q3
3.82
Median
1.40
Q1
0.70
Min
0.00
Largest peers
GOOGL
7.43
GOOG
7.41
SPOT
6.59
META
6.46
NFLX
5.24
ROKU
4.35
DIS
2.04
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Where Roku (ROKU) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Roku (ROKU) trades at 7.89 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

ROKU

Media & Entertainment industry group

7.89

Group distribution
Max
11.45
ROKU
7.89
Q3
5.30
Median
1.84
Q1
0.77
Min
-2.61
Largest peers
SPOT
12.62
NFLX
8.89
ROKU
7.89
META
5.73
GOOGL
5.31
GOOG
5.29
DIS
1.84
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Where Roku (ROKU) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Roku (ROKU) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: ROKUIndustry group median
P/E Ratio (TTM)46.2617.98
P/S Ratio (TTM)4.351.40
P/B Ratio (MRQ)7.891.84
Free Cash Flow Yield (TTM)3.95%7.41%