Roku Inc Stock Buy Hold or Sell Recommendation
| ROKU Stock | USD 69.20 0.52 0.76% |
Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Roku Inc is 'Cautious Hold'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Roku Inc given historical horizon and risk tolerance towards Roku. When Macroaxis issues a 'buy' or 'sell' recommendation for Roku Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
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 industry.
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
 |  |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Roku Trading Alerts and Improvement Suggestions
| Roku Inc had very high historical volatility over the last 90 days | |
| The company reported the previous year's revenue of 3.48 B. Net Loss for the year was (709.56 M) with profit before overhead, payroll, taxes, and interest of 1.44 B. | |
| Over 84.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: All You Need to Know About Roku Rating Upgrade to Buy |
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 | 0.25 | Value At Risk | -4.28 | Potential Upside | 5.67 | Standard Deviation | 3.86 |
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 Stock Institutional Investors
The Roku's institutional investors refer to entities that pool money to purchase Roku's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | T. Rowe Price Investment Management,inc. | 2024-09-30 | 2.1 M | Ing Investment Management Llc | 2024-06-30 | 2 M | Holocene Advisors, Lp | 2024-09-30 | 1.7 M | Citadel Advisors Llc | 2024-09-30 | 1.6 M | Westfield Capital Management Company, Lp | 2024-09-30 | 1.5 M | Squarepoint Ops Llc | 2024-06-30 | 1.3 M | Norges Bank | 2024-06-30 | 985.8 K | Charles Schwab Investment Management Inc | 2024-09-30 | 956 K | Renaissance Technologies Corp | 2024-09-30 | 939.8 K | Fmr Inc | 2024-09-30 | 14.6 M | Vanguard Group Inc | 2024-09-30 | 12.1 M |
Roku Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (14.1M) | (4.2M) | 3.6M | (56.5M) | 14.7M | 15.5M | |
| Investments | 42.4M | (81.3M) | (176.8M) | (40M) | (154.5M) | (146.8M) | |
| Change In Cash | 361.8M | 575.9M | 1.1B | (185.7M) | 104.6M | 99.4M | |
| Free Cash Flow | (70.9M) | 65.8M | 188.0M | (149.9M) | 173.2M | 181.9M | |
| Depreciation | 15.7M | 87.3M | 73.6M | 104.2M | 128.0M | 134.4M | |
| Other Non Cash Items | 531K | 524K | 95.5M | 236.0M | 474.5M | 498.3M | |
| Capital Expenditures | 84.6M | 82.4M | 40.0M | 161.7M | 82.6M | 60.2M | |
| Net Income | (59.9M) | (17.5M) | 242.4M | (498.0M) | (709.6M) | (674.1M) | |
| End Period Cash Flow | 517.3M | 1.1B | 2.1B | 2.0B | 2.1B | 2.2B | |
| Change To Netincome | 87.3M | 138.4M | 186.5M | 361.6M | 415.9M | 436.7M | |
| Change Receivables | (110.2M) | (196.0M) | (221.8M) | (10.9M) | (9.8M) | (10.3M) |
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 Entertainment 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 | 0.01 | |
β | Beta against Dow Jones | 1.87 | |
σ | Overall volatility | 3.63 | |
Ir | Information ratio | 0.03 |
Roku Volatility Alert
Roku Inc exhibits above-average semi-deviation for your current 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 | -0.0722 | -0.31 |
| Return On Asset | -0.031 | -0.14 |
| Profit Margin | (0.04) % | (1.27) % |
| Operating Margin | (0.02) % | (5.51) % |
| Current Valuation | 8.53 B | 16.62 B |
| Shares Outstanding | 127.89 M | 571.82 M |
| Shares Owned By Insiders | 0.61 % | 10.09 % |
| Shares Owned By Institutions | 83.62 % | 39.21 % |
| Number Of Shares Shorted | 8.93 M | 4.71 M |
| Price To Earning | 47.53 X | 28.72 X |
| Price To Book | 4.08 X | 9.51 X |
| Price To Sales | 2.58 X | 11.42 X |
| Revenue | 3.48 B | 9.43 B |
| Gross Profit | 1.44 B | 27.38 B |
| EBITDA | (570.67 M) | 3.9 B |
| Net Income | (709.56 M) | 570.98 M |
| Cash And Equivalents | 2.02 B | 2.7 B |
| Cash Per Share | 14.49 X | 5.01 X |
| Total Debt | 654.27 M | 5.32 B |
| Debt To Equity | 0.25 % | 48.70 % |
| Current Ratio | 3.15 X | 2.16 X |
| Book Value Per Share | 16.95 X | 1.93 K |
| Cash Flow From Operations | 255.86 M | 971.22 M |
| Short Ratio | 2.58 X | 4.00 X |
| Earnings Per Share | (1.19) X | 3.12 X |
| Price To Earnings To Growth | (0.37) X | 4.89 X |
| Target Price | 77.7 | |
| Number Of Employees | 3.15 K | 18.84 K |
| Beta | 2.07 | -0.15 |
| Market Capitalization | 10.05 B | 19.03 B |
| Total Asset | 4.26 B | 29.47 B |
| Retained Earnings | (1.3 B) | 9.33 B |
| Working Capital | 1.8 B | 1.48 B |
Note: Disposition of 1248 shares by Gilbert Fuchsberg of Roku subject to Rule 16b-3 [view details]
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.
Use Investing Ideas to Build Portfolios
In addition to having Roku in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies that are involved with the development and processing of raw materials such as silver or forestry. The Raw Materials theme has 15 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Raw Materials Theme or any other thematic opportunities.
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Additional Tools for Roku Stock Analysis
When running Roku's price analysis, check to measure Roku's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Roku is operating at the current time. Most of Roku's value examination focuses on studying past and present price action to predict the probability of Roku's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Roku's price. Additionally, you may evaluate how the addition of Roku to your portfolios can decrease your overall portfolio volatility.