Cloudflare, Inc.NET
NYSE • Technology
$186.79
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+33.5% YoY
Gross Margin
71.2%
Health Score
5/10
D/E Ratio
2.54
Confidence
MEDIUM
Business Snapshot
Cloudflare provides content delivery network (CDN), cybersecurity, and cloud connectivity services, operating as a key player in the software-infrastructure space. Its primary revenue comes from subscription-based offerings that protect and accelerate websites and applications. The company competes in the large and competitive cloud-security market as a challenger to incumbents like Akamai and Fastly, leveraging a global edge network that provides a competitive moat through scale and network effects. Cloudflare has grown to a mid-to-large-cap scale with trailing twelve-month revenue of $2.33 billion, yet remains unprofitable on a GAAP basis. The defining characteristic is its founder-led culture and a heavy focus on developer-centric, usage-based pricing that drives high customer adoption.
Financial Health
Gross margin of 71.2% declined from 74.2% in the prior year, indicating some pricing or mix pressure, though it remains high for the infrastructure software industry. Net margin is unavailable due to a data-quality flag, but TTM net income of -$86.7 million confirms the company is still loss-making...
Risk Assessment
- VALUATION — Price-to-sales of 28.21x is among the highest in the software-infrastructure space; no P/E exists due to losses, making traditional value comparison impossible.
- DEBT / LIQUIDITY — Debt-to-equity of 2.54x indicates a highly leveraged balance sheet, which could pressure cash flows if interest rates remain elevated.
- 52-WEEK POSITION — Current price of $186.79 is 28% below the 52-week high of $260.00 and below the midpoint of the range ($205.23), signaling ongoing bearish momentum.
- TECHNICALS — RSI of 41.3 is neutral but price is below both the 50-day ($207.03) and 200-day ($204.11) moving averages, confirming a near-term downtrend.
- VALUATION DIVERGENCE — The FMP DCF fair value of $13.93 implies a huge premium; while not a direct risk, it highlights the disconnect between the current price and intrinsic value estimates....
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