Cloudflare Operating Margin vs. Current Valuation
| NET Stock | USD 215.42 -5.94 -2.68% |
Cloudflare Operating Profit Margin | -0.0985 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.61 | 0.7443 |
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Margin and return metrics for Cloudflare describe how earnings relate to the capital employed. The dataset draws on income, revenue, and balance sheet disclosures. The profitability framework captures how margins evolve alongside revenue and cost dynamics. The metrics are informational and do not imply future performance.
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Macro event markers
Earnings Share -0.29 | Revenue Per Share | Quarterly Revenue Growth 0.336 | Return On Assets | Return On Equity |
Cloudflare's market price can diverge from book value, the accounting figure shown on Cloudflare's balance sheet. Cloudflare's market capitalization is 77.91 B. Cloudflare P/B of 54.39 reflects a market valuation far exceeding accounting equity. Enterprise value stands at 78.78 B. The intrinsic value concept focuses on underlying worth, which can diverge from market price and book value.
Value and price for Cloudflare may converge over time but can differ substantially in any given period. For Cloudflare, key inputs include a P/B ratio of 54.39, a profit margin of -4.72%, ROE of -8.16%, and revenue of 2.17 B. Cloudflare's market quotation reflects the latest level where a willing buyer met a willing seller. This content does not constitute investment advice or a recommendation.
Cloudflare Current Valuation vs. Operating Margin Fundamental Analysis
Peer-based valuation metrics position Cloudflare within its sector hierarchy. Cloudflare is rated below average in operating margin relative to competitors. It maintains a fifth standing in current valuation relative to competitors . Recent filings indicate that Operating Profit Margin continues advancing. Looking back, Cloudflare posted Operating Profit Margin of -0.0938 in the previous fiscal year. Comparative pricing ratios position Cloudflare within industry norms.Cloudflare Current Valuation vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Cloudflare |
| = | -0.07 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account all liquid assets, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Cloudflare |
| = | 78.78 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Cloudflare Current Valuation vs Competition
Cloudflare maintains a fifth standing in current valuation relative to competitors. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 769.19 Billion. Cloudflare retains roughly 78.78 Billion in current valuation claiming about 10% of equities under Information Technology sector.
Cloudflare Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cloudflare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cloudflare will eventually generate negative long term returns. The profitability progress is the general direction of Cloudflare's change in net profit over the period of time. It can combine multiple indicators of Cloudflare, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | End Of Year Estimate | ||
| Accumulated Other Comprehensive Income | 12.3 M | 12.9 M | |
| Net Interest Income | 122.5 M | 128.6 M | |
| Interest Income | 122.5 M | 128.6 M | |
| Operating Income | -203.3 M | -213.5 M | |
| Net Loss | -102.3 M | -107.4 M | |
| Income Before Tax | -92.7 M | -97.3 M | |
| Total Other Income Expense Net | 110.6 M | 116.1 M | |
| Net Loss | -102.3 M | -107.4 M | |
| Net Loss | -102.3 M | -107.4 M | |
| Income Tax Expense | 9.6 M | 10 M | |
| Non Operating Income Net Other | 17.8 M | 18.7 M | |
| Change To Netincome | 239.3 M | 251.3 M | |
| Net Loss | -0.29 | -0.31 | |
| Income Quality | -6.52 | -6.19 | |
| Net Income Per E B T | 1.10 | 1.07 |
Cloudflare Profitability Driver Comparison
Profitability drivers for Cloudflare are the financial and operational factors that most directly influence its earnings. Investors must contend with a wide range of external shocks - from regulatory changes to commodity price swings - that can disrupt Cloudflare's financial results.
Earnings Estimation Breakdown
For Cloudflare, the next projected earnings per share is 0.2679 based on current analyst consensus. The range of individual analyst forecasts runs from 0.24 to 0.32, reflecting varying views on Cloudflare's near-term business performance. Consensus EPS excludes non-recurring items and is calculated from trailing twelve-month operating results.Last Reported EPS
0.24 Lowest | Expected EPS | 0.32 Highest |
Earnings Projection Consensus
If consensus earnings estimates imply a fair value above Cloudflare's current price, the market may be discounting future earnings more aggressively than analysts. If the market price is ahead of the estimate, the implied premium may require strong execution to sustain. These valuation signals are best used as one input within a multi-method investment framework.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 35 | 76.72% | 0.0 | 0.2679 | -0.29 |
Earnings History
Professional analyst coverage of Cloudflare synthesizes management guidance, sector trends, and macro assumptions into a consensus EPS estimate. This consensus shapes investor expectations ahead of each earnings release and becomes the reference point for post-report reaction. We recommend reviewing consensus alongside fundamental valuation models before making allocation decisions.Cloudflare Quarterly Gross Profit | 456.2 Million |
Mean reversion in Cloudflare's price occurs when temporary dislocations - caused by sentiment extremes, news events, or liquidity shocks - correct back toward the stock's historical fair value.
Earnings per Share Projection vs Actual
For Cloudflare, actual EPS provides a historical record of per-share profitability that investors use to identify trends. Expected EPS for Cloudflare projects this figure forward using guidance, industry dynamics, and financial analysis. The higher Cloudflare's EPS trajectory, the stronger its implied earnings quality relative to peers.Estimated Months Earnings per Share
Investors seeking income from Cloudflare should track EPS trends alongside dividend history to assess payout sustainability. EPS that outpaces dividend growth signals expanding coverage; EPS that lags dividend growth raises cut risk. Always complement EPS analysis with a review of operating leverage, working capital trends, and competitive positioning.Quarterly Analyst Estimates and Surprise Metrics
EPS surprise events for Cloudflare's have historically correlated with short-term return outliers - both upside and downside. The post-earnings drift effect means that initial surprise reactions can persist over subsequent trading sessions. Analyst estimates contributing to consensus are derived from fundamental models trained on trailing performance and management guidance.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
2026-02-10 | 2025-12-31 | 0.27 | 0.28 | 0.01 | 3 | ||
2025-10-30 | 2025-09-30 | 0.23 | 0.27 | 0.04 | 17 | ||
2025-07-31 | 2025-06-30 | 0.18 | 0.21 | 0.03 | 16 | ||
2025-05-08 | 2025-03-31 | 0.16 | 0.16 | 0.0 | 0 | ||
2025-02-06 | 2024-12-31 | 0.18 | 0.19 | 0.01 | 5 | ||
2024-11-07 | 2024-09-30 | -0.07 | -0.04 | 0.03 | 42 | ||
2024-08-01 | 2024-06-30 | 0.14 | 0.2 | 0.06 | 42 | ||
2024-05-02 | 2024-03-31 | 0.13 | 0.16 | 0.03 | 23 | ||
2024-02-08 | 2023-12-31 | 0.12 | 0.15 | 0.03 | 25 | ||
2023-11-02 | 2023-09-30 | 0.1 | 0.16 | 0.06 | 60 | ||
2023-08-03 | 2023-06-30 | 0.07 | 0.1 | 0.03 | 42 | ||
2023-04-27 | 2023-03-31 | 0.03 | 0.08 | 0.05 | 166 | ||
2023-02-09 | 2022-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2022-11-03 | 2022-09-30 | 0.0034 | 0.06 | 0.0566 | 1664 | ||
2022-08-04 | 2022-06-30 | -0.01 | -0.1954 | -0.1854 | 1854 | ||
2022-05-05 | 2022-03-31 | 0.0013 | 0.01 | 0.0087 | 669 | ||
2022-02-10 | 2021-12-31 | -0.0043 | -0.2419 | -0.2376 | 5525 | ||
2021-11-04 | 2021-09-30 | -0.04 | -0.3412 | -0.3012 | 753 | ||
2021-08-05 | 2021-06-30 | -0.04 | -0.02 | 0.02 | 50 | ||
2021-05-06 | 2021-03-31 | -0.03 | -0.03 | 0.0 | 0 | ||
2021-02-11 | 2020-12-31 | -0.04 | -0.02 | 0.02 | 50 | ||
2020-11-05 | 2020-09-30 | -0.05 | -0.02 | 0.03 | 60 | ||
2020-08-06 | 2020-06-30 | -0.06 | -0.03 | 0.03 | 50 | ||
2020-05-07 | 2020-03-31 | -0.06 | -0.04 | 0.02 | 33 | ||
2020-02-13 | 2019-12-31 | -0.07 | -0.06 | 0.01 | 14 | ||
2019-11-07 | 2019-09-30 | -0.15 | -0.16 | -0.01 | 6 | ||
2019-09-13 | 2019-06-30 | -0.2 | -0.06 | 0.14 | 70 |
Use Cloudflare in pair-trading
Using Cloudflare in a pair-trading setup can improve risk control because gains and losses are judged against a second position instead of against the market alone. The advantage is that adverse movement in one leg may be partly offset by the other when correlation and thesis alignment hold.
Cloudflare Pair Trading
Cloudflare Pair Trading Analysis
Using correlated positions as Cloudflare substitutes during tax-loss harvesting allows investors to capture a tax benefit without disrupting portfolio allocation. The key is finding instruments that track Cloudflare closely enough to maintain equivalent risk and return.
The correlation of Cloudflare with other assets is a key diversification metric. Pairing Cloudflare with uncorrelated or negatively correlated instruments can reduce overall portfolio volatility without necessarily reducing expected returns.
The combination of Correlation analysis and pair analysis offers hedging context for Cloudflare. Pair analysis can span stocks within the same sector or across different segments. The reliability of pair-based hedging varies with market conditions and correlation stability. All figures reflect recorded trading activity across periods.Use Investing Themes to Complement your Cloudflare position
With 77.91 Billion market cap in the Software—Infrastructure industry, Cloudflare works well as a mid-cap core holding around which broader thematic baskets can be built. Cloudflare mid-cap scale (77.91 Billion) within Software—Infrastructure helps compare substitutes, complements, and diversifiers that strengthen the overall Technology allocation.
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Artificial Intelligence
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The Artificial Intelligence Theme can be deployed as a buy-and-hold allocation or traded actively around individual position volatility.
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