Shares of Large-cap technology company Cloudflare moved 6.9% this evening, and are now trading at $69.52 per share. The average analyst target price for the stock is $63.78.
CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide.
Based on its trailing earning per share of -0.58, Cloudflare has a trailing 12 month Price to Earnings (P/E) ratio of -119.9 NET has a forward P/E ratio of 165.5.
The company has a price to earnings growth (PEG) ratio of 3.08. A number between 0 and 1 could mean that the market is undervaluing Cloudflare's estimated growth potential
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged
| 2020-02-10 | 2021-02-25 | 2022-03-01 | 2023-02-24 | |
|---|---|---|---|---|
| Revenue (k) | $287,022 | $431,059 | $656,426 | $975,241 |
| Gross Margins | 77.9% | 76.6% | 77.6% | 76.2% |
| Operating Margins | -37.6% | -24.8% | -19.4% | -20.6% |
| Net Margins | -36.87% | -27.69% | -39.66% | -19.83% |
| Net Income (k) | -$105,828 | -$119,370 | -$260,309 | -$193,381 |
| Net Interest Expense (k) | $4,675 | -$18,376 | -$47,264 | $9,893 |
| Depreciation & Amort. (k) | -$29,479 | -$49,387 | -$66,607 | -$102,335 |
| Earnings Per Share | -$0.72 | -$0.4 | -$0.83 | -$0.58 |
| EPS Growth | n/a | 44.44% | -107.5% | 30.12% |
| Diluted Shares (k) | 146,306 | 299,774 | 314,543 | 289,519 |
| Free Cash Flow (k) | $4,372 | $39,246 | $157,634 | $267,201 |
| Capital Expenditures | -$43,289 | -$56,375 | -$92,986 | -$143,606 |
| Net Current Assets (k) | $584,876 | $566,243 | $395,144 | -$76,060 |
| Current Ratio | 8.22 | 7.99 | 6.78 | 4.74 |
| Long Term Debt (k) | $10,506 | $383,275 | $1,146,877 | $1,436,192 |
| LT Debt to Equity | 0.01 | 0.47 | 1.41 | 2.3 |
Cloudflare benefits from growing revenues and increasing reinvestment in the business, a pattern of improving cash flows, and an excellent current ratio. The company's financial statements show wider gross margins than its peer group and positive EPS growth. However, the firm suffers from consistently negative margins with a positive growth rate and high levels of debt.
