Cloudflare Z Score
| NET Stock | USD 195.85 10.68 5.77% |
What is Altman Z-Score?
The Altman Z-Score is one of the most widely-used financial formulas to predict bankruptcy risk. Developed by Edward Altman in 1968, this model combines five key financial ratios to generate a single score that indicates the likelihood of financial distress within two years.
How to Interpret Cloudflare Z-Score
Z-Score above 3.0: Safe zone - Low bankruptcy risk
Z-Score 2.7 - 3.0: Gray zone - Moderate risk
Z-Score 1.8 - 2.7: Warning zone - Elevated risk
Z-Score below 1.8: Distress zone - High bankruptcy risk
Why Cloudflare Z-Score Matters
Investors use the Z-Score to assess financial health before making investment decisions. A declining Z-Score over time may signal deteriorating fundamentals, while an improving score suggests strengthening financial position. The model evaluates five critical metrics: working capital to assets, retained earnings to assets, EBIT to assets, market value of equity to total liabilities, and sales to assets.
Cloudflare Z-Score Analysis
The module uses available fundamental data of Cloudflare to calculate the Altman Z score based on five fundamental metrics from the company's most recent public disclosure documents. Check out
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Cloudflare Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Cloudflare is extremely important. It helps to project a fair market value of Cloudflare Stock properly, considering its historical fundamentals such as Z Score. Since Cloudflare's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Cloudflare's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Cloudflare's interrelated accounts and indicators.
Click cells to compare fundamentals
Is there potential for Application Software market expansion? Will Cloudflare introduce new products? Factors like these will boost the valuation of Cloudflare. Anticipated expansion of Cloudflare directly elevates investor willingness to pay premium valuations. Understanding fair value requires weighing current performance against future potential. All the valuation information about Cloudflare listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.29) | Revenue Per Share | Quarterly Revenue Growth 0.336 | Return On Assets | Return On Equity |
Investors evaluate Cloudflare using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Cloudflare's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Analysts utilize numerous techniques to assess fundamental value, seeking to purchase shares when trading prices fall beneath estimated intrinsic worth. External factors like market trends, sector rotation, and investor psychology can cause Cloudflare's market price to deviate significantly from intrinsic value.
It's important to distinguish between Cloudflare's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Cloudflare should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Cloudflare's market price signifies the transaction level at which participants voluntarily complete trades.
Cloudflare 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Cloudflare's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Cloudflare.
| 11/17/2025 |
| 02/15/2026 |
If you would invest 0.00 in Cloudflare on November 17, 2025 and sell it all today you would earn a total of 0.00 from holding Cloudflare or generate 0.0% return on investment in Cloudflare over 90 days. Cloudflare is related to or competes with Unity Software, SERESCO 16, BYTES TECHGRP, Blackline, Dynatrace Holdings, DoubleVerify Holdings, and Aurora Mobile. CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide More
Cloudflare Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Cloudflare's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Cloudflare upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.1) | |||
| Maximum Drawdown | 19.4 | |||
| Value At Risk | (5.38) | |||
| Potential Upside | 5.77 |
Cloudflare Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cloudflare's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cloudflare's standard deviation. In reality, there are many statistical measures that can use Cloudflare historical prices to predict the future Cloudflare's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.52) | |||
| Treynor Ratio | (0.26) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cloudflare's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Cloudflare February 15, 2026 Technical Indicators
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| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.25) | |||
| Mean Deviation | 2.5 | |||
| Coefficient Of Variation | (1,338) | |||
| Standard Deviation | 3.4 | |||
| Variance | 11.54 | |||
| Information Ratio | (0.1) | |||
| Jensen Alpha | (0.32) | |||
| Total Risk Alpha | (0.52) | |||
| Treynor Ratio | (0.26) | |||
| Maximum Drawdown | 19.4 | |||
| Value At Risk | (5.38) | |||
| Potential Upside | 5.77 | |||
| Skewness | 0.1492 | |||
| Kurtosis | 1.45 |
Cloudflare Backtested Returns
Currently, Cloudflare is very steady. Cloudflare secures Sharpe Ratio (or Efficiency) of close to zero, which signifies that the company had a close to zero % return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Cloudflare, which you can use to evaluate the volatility of the firm. Please confirm Cloudflare's Standard Deviation of 3.4, mean deviation of 2.5, and Risk Adjusted Performance of (0.05) to double-check if the risk estimate we provide is consistent with the expected return of 0.0036%. The firm shows a Beta (market volatility) of 1.0, which signifies possible diversification benefits within a given portfolio. Cloudflare returns are very sensitive to returns on the market. As the market goes up or down, Cloudflare is expected to follow. Cloudflare right now shows a risk of 3.36%. Please confirm Cloudflare total risk alpha, skewness, as well as the relationship between the Skewness and day median price , to decide if Cloudflare will be following its price patterns.
Auto-correlation | 0.09 |
Virtually no predictability
Cloudflare has virtually no predictability. Overlapping area represents the amount of predictability between Cloudflare time series from 17th of November 2025 to 1st of January 2026 and 1st of January 2026 to 15th of February 2026. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Cloudflare price movement. The serial correlation of 0.09 indicates that less than 9.0% of current Cloudflare price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.09 | |
| Spearman Rank Test | -0.06 | |
| Residual Average | 0.0 | |
| Price Variance | 111.1 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
| Competition |
Based on the company's disclosures, Cloudflare has a Z Score of 0.0. This is 100.0% lower than that of the Software sector and about the same as Information Technology (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.
Cloudflare ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Cloudflare's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cloudflare's managers, analysts, and investors.Environmental | Governance | Social |
Cloudflare Institutional Holders
Institutional Holdings refers to the ownership stake in Cloudflare that is held by large financial organizations, pension funds or endowments. Institutions may hold large blocks of Cloudflare's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Cloudflare's value.| Shares | Amvescap Plc. | 2025-06-30 | 3.9 M | Franklin Resources Inc | 2025-06-30 | 3.5 M | American Century Companies Inc | 2025-06-30 | 3 M | Legal & General Group Plc | 2025-06-30 | 2.9 M | Ubs Asset Mgmt Americas Inc | 2025-06-30 | 2.8 M | Norges Bank | 2025-06-30 | 2.8 M | Ing Investment Management Llc | 2025-06-30 | 2.6 M | Gilder Gagnon Howe & Co Llc | 2025-06-30 | 2 M | 1832 Asset Management L.p | 2025-06-30 | 1.9 M | Capital World Investors | 2025-06-30 | 40.8 M | Vanguard Group Inc | 2025-06-30 | 31.5 M |
Cloudflare Fundamentals
| Return On Equity | -0.0816 | ||||
| Return On Asset | -0.0269 | ||||
| Profit Margin | (0.05) % | ||||
| Operating Margin | (0.08) % | ||||
| Current Valuation | 68.33 B | ||||
| Shares Outstanding | 317.32 M | ||||
| Shares Owned By Insiders | 0.73 % | ||||
| Shares Owned By Institutions | 89.50 % | ||||
| Number Of Shares Shorted | 9.25 M | ||||
| Price To Earning | (23.01) X | ||||
| Price To Book | 47.23 X | ||||
| Price To Sales | 31.79 X | ||||
| Revenue | 2.17 B | ||||
| Gross Profit | 1.62 B | ||||
| EBITDA | (207.21 M) | ||||
| Net Income | (102.27 M) | ||||
| Cash And Equivalents | 943.54 M | ||||
| Cash Per Share | 4.98 X | ||||
| Total Debt | 4.58 B | ||||
| Debt To Equity | 2.64 % | ||||
| Current Ratio | 5.35 X | ||||
| Book Value Per Share | 4.15 X | ||||
| Cash Flow From Operations | 603.11 M | ||||
| Short Ratio | 2.39 X | ||||
| Earnings Per Share | (0.29) X | ||||
| Price To Earnings To Growth | 2.35 X | ||||
| Target Price | 232.27 | ||||
| Number Of Employees | 4.84 K | ||||
| Beta | 1.98 | ||||
| Market Capitalization | 68.92 B | ||||
| Total Asset | 6.04 B | ||||
| Retained Earnings | (1.2 B) | ||||
| Working Capital | 1.48 B | ||||
| Current Asset | 132.02 M | ||||
| Current Liabilities | 39.93 M | ||||
| Net Asset | 6.04 B |
About Cloudflare Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Cloudflare's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cloudflare using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cloudflare based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Additional Tools for Cloudflare Stock Analysis
When running Cloudflare's price analysis, check to measure Cloudflare'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 Cloudflare is operating at the current time. Most of Cloudflare's value examination focuses on studying past and present price action to predict the probability of Cloudflare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cloudflare's price. Additionally, you may evaluate how the addition of Cloudflare to your portfolios can decrease your overall portfolio volatility.