Now trading at a price of $60.46, Cloudflare has moved 1.1% so far today.
Cloudflare returned losses of -9.0% last year, with its stock price reaching a high of $76.07 and a low of $37.37. Over the same period, the stock underperformed the S&P 500 index by -17.0%. As of April 2023, the company's 50-day average price was $65.55. CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. Based in San Francisco, CA, the large-cap Technology company has 3,389 full time employees. Cloudflare has not offered a dividend during the last year.
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 | 78.0% | 77.0% | 78.0% | 76.0% |
| Operating Margins | -38% | -25% | -19% | -21% |
| Net Margins | -37.0% | -28.0% | -40.0% | -20.0% |
| 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 | -$0.59 |
| EPS Growth | n/a | 44.44% | -107.5% | 28.92% |
| Diluted Shares (k) | 146,306 | 299,774 | 314,543 | 326,332 |
| 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 |
| 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 has a pattern of improving cash flows and an excellent current ratio. Additionally, the company's financial statements display 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. Finally, we note that Cloudflare has weak revenue growth and a flat capital expenditure trend.
Cloudflare does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $0.45, the company has a forward P/E ratio of 145.7. In comparison, the average P/E ratio for the Technology sector is 27.16. Furthermore, Cloudflare is likely overvalued compared to the book value of its equity, since its P/B ratio of 31.43 is higher than the sector average of 6.23.
Cloudflare Has an Average Rating of Buy:
The 24 analysts following Cloudflare have set target prices ranging from $43.0 to $90.0 per share, for an average of $70.42 with a buy rating. As of April 2023, the company is trading -6.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Cloudflare has an average amount of shares sold short because 6.6% of the company's shares are sold short. Institutions own 89.2% of the company's shares, and the insider ownership rate stands at 0.97%, suggesting a small amount of insider investors. The largest shareholder is Morgan Stanley, whose 11% stake in the company is worth $1,942,063,246.
