Roku (Germany) Buy Hold or Sell Recommendation
| R35 Stock | EUR 65.85 0.71 1.07% |
Assuming the 90 days horizon and your way above-average risk tolerance, our recommendation regarding Roku Inc is 'Sell'. Macroaxis provides Roku buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Roku positions.
Check out Roku Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Roku and provide practical buy, sell, or hold advice based on investors' constraints. Roku Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Roku |
Execute Roku Buy or Sell Advice
The Roku recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Roku Inc. Macroaxis does not own or have any residual interests in Roku Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Roku's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Roku Trading Alerts and Improvement Suggestions
| Roku Inc had very high historical volatility over the last 90 days | |
| The company reported the revenue of 3.13 B. Net Loss for the year was (498 M) with profit before overhead, payroll, taxes, and interest of 1.44 B. | |
| Over 81.0% of the company shares are owned by institutional investors |
Roku Returns Distribution Density
The distribution of Roku's historical returns is an attempt to chart the uncertainty of Roku's future price movements. The chart of the probability distribution of Roku daily returns describes the distribution of returns around its average expected value. We use Roku Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Roku returns is essential to provide solid investment advice for Roku.
| Mean Return | 0.33 | Value At Risk | -4.81 | Potential Upside | 7.41 | Standard Deviation | 3.82 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Roku historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Roku Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Roku or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Roku's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Roku stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.31 | |
β | Beta against Dow Jones | 0.09 | |
σ | Overall volatility | 3.60 | |
Ir | Information ratio | 0.05 |
Roku Volatility Alert
Roku Inc shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Roku's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Roku's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Roku Fundamentals Vs Peers
Comparing Roku's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Roku's direct or indirect competition across all of the common fundamentals between Roku and the related equities. This way, we can detect undervalued stocks with similar characteristics as Roku or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Roku's fundamental indicators could also be used in its relative valuation, which is a method of valuing Roku by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Roku to competition |
| Fundamentals | Roku | Peer Average |
| Return On Equity | -0.18 | -0.31 |
| Return On Asset | -0.0725 | -0.14 |
| Profit Margin | (0.16) % | (1.27) % |
| Operating Margin | (0.16) % | (5.51) % |
| Current Valuation | 5.42 B | 16.62 B |
| Shares Outstanding | 122.68 M | 571.82 M |
| Shares Owned By Insiders | 0.36 % | 10.09 % |
| Shares Owned By Institutions | 81.26 % | 39.21 % |
| Price To Book | 2.59 X | 9.51 X |
| Price To Sales | 1.96 X | 11.42 X |
| Revenue | 3.13 B | 9.43 B |
| Gross Profit | 1.44 B | 27.38 B |
| EBITDA | (382.96 M) | 3.9 B |
| Net Income | (498 M) | 570.98 M |
| Cash And Equivalents | 263.9 M | 2.7 B |
| Cash Per Share | 2.33 X | 5.01 X |
| Total Debt | 79.98 M | 5.32 B |
| Debt To Equity | 20.50 % | 48.70 % |
| Current Ratio | 2.76 X | 2.16 X |
| Book Value Per Share | 18.90 X | 1.93 K |
| Cash Flow From Operations | 11.79 M | 971.22 M |
| Earnings Per Share | (3.17) X | 3.12 X |
| Target Price | 462.12 | |
| Number Of Employees | 3.6 K | 18.84 K |
| Beta | 1.79 | -0.15 |
| Market Capitalization | 9.72 B | 19.03 B |
| Total Asset | 4.41 B | 29.47 B |
| Z Score | 72.6 | 8.72 |
| Net Asset | 4.41 B |
Roku Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Roku . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Roku Buy or Sell Advice
When is the right time to buy or sell Roku Inc? Buying financial instruments such as Roku Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Information and Resources on Investing in Roku Stock
When determining whether Roku Inc is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Roku Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Roku Inc Stock. Highlighted below are key reports to facilitate an investment decision about Roku Inc Stock:Check out Roku Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.