Roku Inc. Class A Common Stock (ROKU)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Roku as a student of Graham and Buffett. The business is a streaming platform and device seller. Filed results show a real turn: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.4 billion and net income $164.2 million, or diluted EPS $1.08. That follows fiscal Q1 2026 revenue of $1.2 billion and net income of $85.7 million. The longer filed record shows revenue rising from $3.5 billion in fiscal year 2023 to $4.1 billion in fiscal year 2024 to $4.7 billion in fiscal year 2025, while net income went from a $709.6 million loss in fiscal year 2023 to a $129.4 million loss in fiscal year 2024 to $88.4 million of profit in fiscal year 2025. The Lynch category is TURNAROUND because it returned to profit after a loss within three years. Financial health is decent: D/E 0.17, Altman Z 8.54, Piotroski 8/9, and trailing FCF $709.9 million, a 3.1% FCF yield. But quality is not obviously wide-moat. ROCE is only 4.25%, while ROE is 13.12%. Valuation gives me pause. At the 2026-10-13 close of $152.66, FairStock calculates P/E 64.41, P/B 8.02, EV/EBITDA 29.64, PEG 0.20, and Graham Number $31.94, implying a margin of safety of -377.96%. Its FairStock Score is 31/100. The company earns money and has cash flow, but the price already discounts a lot of future success. I would want the profit trend and return on capital to prove durable before calling this a bargain. Beta 2.05 also tells me the market can swing this stock sharply.

In plain English: Roku runs a TV streaming platform and sells streaming players and Roku-branded TVs, making money from advertising, platform fees, and device sales. The business looks stronger than a few years ago because it has turned from large losses to real profits, with fiscal Q2 2026, the quarter ended 2026-06-30, showing $164.2 million of net income on $1.4 billion of revenue. Still, at the 2026-10-13 close of $152.66, the stock looks expensive compared with the company's current profits and asset value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer