Cloudflare, Inc.

Technology
Computer Software: Prepackaged Software
www.cloudflare.com

Moat Score
Safety Score

Market Cap $38.47B
PE -410
Debt $1.29B
Cash $185.91M
EV $39.57B
FCF $195.86M

Earnings

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Sales & Net Margins

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Earnings	-$93.82M
EBIT	-$95.23M
ROE	-10%
ROA	-3%
FCF	$195.86M
Equity	$973.09M
Growth Stability	1
PE	-410.02
PB	39.53
P/FCF	196.4
P/S	24.47
Price/Cash	0
Debt/Equity	1.32
Debt/FCF	6.57
Net Margins	-5%
Gross Margins	78%
Op. Margins	-6%
Sales Growth YoY	28%
Sales Growth QoQ	7%
Sales CAGR	47%
FCF CAGR	1%
Equity CAGR	-0%
Earnings Growth YoY	-35%
Earnings Growth QoQ	2%

Sales CAGR 5Y	44%
FCF CAGR 5Y	4%
Equity CAGR 5Y	0%
Earnings CAGR 3Y	37%
Sales CAGR 3Y	37%
FCF CAGR 3Y	68%
Equity CAGR 3Y	16%
Market Cap	$38.47B
Revenue	$1.57B
Assets	$3.06B
Total Debt	$1.29B
Cash	$185.91M
Shares Outstanding	340.54M
EV	39.57B
Moat Score	8%
Safety Score	79%
Working Capital	1.52B
Current Ratio	3.37
Gross Profit	$1.22B
Shares Growth 3y	3%
Equity Growth QoQ	10%
Equity Growth YoY	39%

Assets & ROA

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Stockholders Equity & ROE

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Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.

SEC Filings

Direct access to Cloudflare, Inc. (NET) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cloudflare, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cloudflare, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Cloudflare, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cloudflare, Inc..

Years

Calculation mode

= $2.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$196M	$198M	$201M	$203M	$206M	$208M	$211M	$213M	$216M	$218M	$221M	$2.2B
DCF		$180M	$166M	$153M	$140M	$129M	$119M	$109M	$101M	$93M	$85M	$852M
Value	$2.1B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-8%	-45%	-37%	-28%	-40%	-20%	-14%	-5%
ROA	-	-	-13%	-8%	-5%	-7%	-6%	-3%
ROE	-	-	-15%	-15%	-32%	-31%	-24%	-10%

Bad Net Margins (-5.45%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-0	-5.21	-40.9	-71.77	9.17	6.57
Debt over Equity	-	-0	0	0.47	1.43	2.3	1.68	1.32
Growth Stability	-	-	-	-	-	-	-	1

Bad Debt/FCF ratio (6.57)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.32)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	43%	49%	50%	52%	49%	33%	44%
Earnings YoY growth	-	711%	21%	13%	118%	-26%	-5%	-
Equity YoY growth	-	90%	-739%	13%	-1%	-23%	22%	0%
FCF YoY growth	-	333%	20%	-11%	-61%	-29%	-800%	4%