Cloudflare Inc
NYSE:NET

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Cloudflare Inc Logo
Cloudflare Inc
NYSE:NET
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Price: 104.24 USD 8.05% Market Closed
Market Cap: 35.8B USD
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Intrinsic Value

The intrinsic value of one NET stock under the Base Case scenario is 20.91 USD. Compared to the current market price of 104.24 USD, Cloudflare Inc is Overvalued by 80%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

NET Intrinsic Value
20.91 USD
Overvaluation 80%
Intrinsic Value
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Cloudflare Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Cloudflare Inc

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Business Breakdown

Cloudflare Inc. is a pioneering technology company that emerged in 2009 with a bold vision: to build a better Internet. As the digital world grows increasingly complex, Cloudflare stands at the forefront, providing a comprehensive suite of services designed to enhance the performance, security, and reliability of websites and applications. By leveraging a robust global network, Cloudflare protects businesses from online threats, accelerates their web traffic, and ensures content is delivered efficiently worldwide. This makes it an essential partner for companies seeking to navigate the evolving landscape of digital infrastructure, especially as cyber threats and regulatory demands escalate....

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Cloudflare Inc

Current Assets 2.2B
Cash & Short-Term Investments 1.8B
Receivables 266.4m
Other Current Assets 73.6m
Non-Current Assets 898.9m
PP&E 548.1m
Intangibles 176.4m
Other Non-Current Assets 174.4m
Current Liabilities 641.6m
Accounts Payable 74.1m
Accrued Liabilities 177.7m
Other Current Liabilities 389.8m
Non-Current Liabilities 1.4B
Long-Term Debt 1.3B
Other Non-Current Liabilities 161.7m
Efficiency

Earnings Waterfall
Cloudflare Inc

Revenue
1.6B USD
Cost of Revenue
-353.3m USD
Gross Profit
1.2B USD
Operating Expenses
-1.4B USD
Operating Income
-162.9m USD
Other Expenses
69.1m USD
Net Income
-93.8m USD

Free Cash Flow Analysis
Cloudflare Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3 2024, Cloudflare achieved impressive revenue of $430.1 million, a 28% year-over-year increase, driven by the addition of 219 large customers, raising the total to 3,265. Operating income surged nearly 50%, leading to an operating margin of 14.8% and free cash flow of $45.3 million, reflecting operational efficiency. Looking ahead, the company expects Q4 revenue between $451 million and $452 million, up 25% year-over-year, and full-year revenue of approximately $1.661 billion to $1.662 billion, marking a growth of 28%. As Cloudflare navigates a transformative phase in its sales strategy, they foresee a stronger pipeline and improved customer adoption for their AI products.

What is Earnings Call?
Fundamental Scores

NET Profitability Score
Profitability Due Diligence

Cloudflare Inc's profitability score is 38/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
Exceptional Revenue Growth Forecast
ROE is Increasing
38/100
Profitability
Score

Cloudflare Inc's profitability score is 38/100. The higher the profitability score, the more profitable the company is.

NET Solvency Score
Solvency Due Diligence

Cloudflare Inc's solvency score is 55/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Short-Term Solvency
Negative Net Debt
Long-Term Solvency
55/100
Solvency
Score

Cloudflare Inc's solvency score is 55/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

NET Price Targets Summary
Cloudflare Inc

Wall Street analysts forecast NET stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for NET is 95.65 USD with a low forecast of 57.57 USD and a high forecast of 126 USD.

Lowest
Price Target
57.57 USD
45% Downside
Average
Price Target
95.65 USD
8% Downside
Highest
Price Target
126 USD
21% Upside
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Dividends

Cloudflare Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for NET is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Ownership

NET Insider Trading
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Profile

Cloudflare Inc Logo
Cloudflare Inc

Country

United States of America

Industry

Technology

Market Cap

35.8B USD

Dividend Yield

0%

Description

Cloudflare, Inc. engages in the provision of cloud-based services to secure websites. The company is headquartered in San Francisco, California and currently employs 3,063 full-time employees. The company went IPO on 2019-09-13. The firm's network serves as a scalable, unified control plane to deliver security, performance, and reliability across on-premise, hybrid, cloud, and software-as-a-service (SaaS) applications. The firm's integrated suite of products consists of solutions for an organization's external-facing infrastructure, such as Websites, applications, and application programming interfaces (APIs) to deliver security, performance, and reliability; solutions to serve an organization's internal resources, such as Internal networks and devices; developer-based solutions, and consumer offerings. Its security products include Cloud Firewall, Bot Management, Unmetered Mitigation, Cloudflare Orbit, SSL for SaaS, Dedicated & Custom Certs and others. Its performance products include Content Delivery, Intelligent Routing, Content Optimization and others.

Contact

CALIFORNIA
San Francisco
101 Townsend St
+18889935273.0
www.cloudflare.com

IPO

2019-09-13

Employees

3 063

Officers

Co-Founder, Chairman & CEO
Mr. Matthew Prince
Co-Founder, COO, President & Director
Ms. Michelle Zatlyn
Chief Financial Officer
Mr. Thomas Josef Seifert
Chief Legal Officer & Secretary
Mr. Douglas James Kramer
President of Revenue
Mr. Mark F. Anderson
Co-Founder
Mr. Lee Holloway
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VP of Finance & Chief Accounting Officer
Ms. Janel Riley
Chief Technology Officer
Mr. - John
Vice President of Strategic Finance, Treasury and Investor Relations
Mr. Philip Alan Winslow Jr., C.F.A., Jr.
Head of Governance Risk & Compliance
Ms. W. Ling
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See Also

Discover More
What is the Intrinsic Value of one NET stock?

The intrinsic value of one NET stock under the Base Case scenario is 20.91 USD.

Is NET stock undervalued or overvalued?

Compared to the current market price of 104.24 USD, Cloudflare Inc is Overvalued by 80%.

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