Cloudflare, Inc. (NET) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Cloudflare, Inc.

CDW Corp.

Why is Cloudflare, Inc. ?

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 297.9
INTEREST(Q) Highest at USD 1.52 MM
OPERATING PROFIT(Q) Lowest at USD 4.54 MM

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 81.60%, its profits have risen by 38.3%

Consistent Returns over the last 3 years

Along with generating 81.60% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cloudflare, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cloudflare, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cloudflare, Inc.

86.85%

3.66

51.96%

S&P 500

20.12%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.13%

EBIT Growth (5y)

-56.75%

EBIT to Interest (avg)

-22.17

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.59

Tax Ratio

9.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

91.57%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

59.88

EV to EBIT

-405.40

EV to EBITDA

1285.68

EV to Capital Employed

124.11

EV to Sales

39.12

PEG Ratio

Dividend Yield

ROCE (Latest)

-30.61%

ROE (Latest)

-9.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 666.87 MM

NET PROFIT(HY)

Higher at USD -9.57 MM

ROCE(HY)

Highest at -8.16%

DEBT-EQUITY RATIO (HY)

Lowest at -40.59 %

NET SALES(Q)

Highest at USD 614.51 MM

CASH AND EQV(HY)

Highest at USD 8,158.5 MM

-10What is not working for the Company

INTEREST(HY)

At USD 5.8 MM has Grown at 101.49%

NET PROFIT(9M)

At USD -56.18 MM has Grown at -32.01%

OPERATING PROFIT(Q)

Lowest at USD -45.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.39 %

Here's what is working for Cloudflare, Inc.

Operating Cash Flow

Highest at USD 666.87 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 614.51 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Net Profit

Higher at USD -9.57 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Net Profit

At USD -9.57 MM has Grown at 65.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -40.59 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At USD 614.51 MM has Grown at 33.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 8,158.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Cloudflare, Inc.

Interest

At USD 5.8 MM has Grown at 101.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD -45.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -7.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales