# Cloudflare Inc. (NET) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Technology / Software. Price $278.92, market value $99.3 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Cloudflare Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 39.5×**. Each dollar of revenue is priced at 39.5×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 61.3×**. The shares trade at 61.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 0.4%** (5-yr avg 0.2%). Free cash flow equals 0.4% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been.

## Profitability
- **Gross margin: 72.6%**. Cloudflare Inc. keeps 72.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: -14.1%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -4.7%**. The company reported a net loss over the last twelve months.
- **Return on equity: -7.0%**. Return on equity is negative because earnings are negative.
- **Return on assets: -3.4%**. Each dollar of assets produces -3.4% of profit.

## Growth
- **Revenue growth (1 yr): 29.8%** (3-yr 30.5%/yr, 5-yr 38.1%/yr). Revenue grew 29.8% over the last year, against 38.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -26.1%**. Earnings per share fell 26.1%, slower than revenue, so margins compressed.

## Financial health
- **Current ratio: 1.98** (quick 1.98). Current assets cover the next year's liabilities 1.98 times.
- **Altman Z-score: 14.06**. A Z-score of 14.06 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Cloudflare Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (31 analysts). 31 analysts cover Cloudflare Inc.; the consensus is buy, with an average price target of $333.55 (+20% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 32.8%** (YTD 41.5%, 3-mo 11.5%). The shares are up 32.8% over twelve months including dividends.
- **From 52-week high: -16.0%** (75.6% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 1.64** (volatility 63%). Beta of 1.64 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NET · Page: https://foliofundamentals.com/stocks/net

Not investment advice.