Cloudflare, Inc. (NET) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Technology · Software - Infrastructure
Is Cloudflare, Inc. a safe investment right now?
Cloudflare, Inc.'s Altman Z-Score of 10.07 places it in the safe zone. Fair value estimate is not available for this stock. Moat rating: 2.6/5 stars.
Could Cloudflare, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 10.07 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives NET's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.3801 | 1.2 | 0.46 |
| B · Retained Earnings / Total Assets | RE / TA | -0.1996 | 1.4 | -0.28 |
| C · EBIT / Total Assets | EBIT / TA | -0.0139 | 3.3 | -0.05 |
| D · Market Cap / Total Liabilities | MCap / TL | 15.9613 | 0.6 | 9.58 |
| E · Revenue / Total Assets | Rev / TA | 0.3592 | 1.0 | 0.36 |
How has NET's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 22.7 | Safe |
| 2023 | 22.31 | Safe |
| 2024 | 19.95 | Safe |
| 2025 | 10.07 | Safe |
Source: Calculated from NET's latest 10-K filing on SEC EDGAR.
What is Cloudflare, Inc. actually worth?
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Cloudflare, Inc. have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up NET's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is NET's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -9.0% | — |
| 2023 | -8.4% | Stable |
| 2024 | -2.8% | Rising |
| 2025 | -1.8% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Cloudflare, Inc.'s dividend safe?
Cloudflare, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $2.2B | $1.7B | $1.0B | Rising |
| Net Income | −$0.1B | −$0.1B | −$0.2B | Rising |
| Free Cash Flow | $0.3B | $0.2B | −$0.0B | Rising |
| Gross Margin | 74.5% | 77.3% | 76.1% | Stable |
Recent events that affect our NET analysis
NET earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.23. Revenue estimate: $622.7M.
NET analyst consensus: 69% bullish (24 of 35 analysts)
7 Strong Buy, 17 Buy, 9 Hold, 1 Sell, 1 Strong Sell. Consensus target: $231.85 (11.7% upside).
NET filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
NET beat EPS estimates by 3.2%
Reported EPS: $0.28 vs estimate $0.27.
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET beat EPS estimates by 15.4%
Reported EPS: $0.27 vs estimate $0.23.
NET filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET beat EPS estimates by 15.5%
Reported EPS: $0.21 vs estimate $0.18.
NET filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET missed EPS estimates by 1.6%
Reported EPS: $0.16 vs estimate $0.16.
NET filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
NET beat EPS estimates by 5.0%
Reported EPS: $0.19 vs estimate $0.18.
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
NET filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Cloudflare, Inc.
What is Cloudflare, Inc. stock price today?
Cloudflare, Inc. (NET) stock price is $207.56 as of the latest market close, traded on the NYSE exchange.
What does Cloudflare, Inc. do?
Cloudflare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. It provides a cloud-based security solution to secure a range of combination of platforms, including public and private cloud, on-premises, software-as-a-service applications, and Internet of things (IoT) devices; and application security products comprising web application firewall, bot management, distributed denial of service mitigation, API security, SSL/TLS encryption, client-side security, and security center products.
What is Cloudflare, Inc. market cap?
Cloudflare, Inc. has a market capitalization of $73.06B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is NET in?
Cloudflare, Inc. operates in the Technology sector, specifically within the Software - Infrastructure industry. It trades on the NYSE under the ticker symbol NET.
Is NET stock overvalued or undervalued?
We do not have sufficient earnings data to produce a reliable fair value estimate for Cloudflare, Inc. at this time. Stocks without stable earnings history are difficult to value using traditional models.
What is NET stock forecast and analyst target price?
Based on 31 Wall Street analysts, the consensus price target for Cloudflare, Inc. is $231.85, implying upside of 11.7% from the current price.
- Analyst High Target: $300.00
- Analyst Low Target: $135.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Cloudflare, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Cloudflare, Inc.:
- Revenue growth (current year est.): 29.2%
- EPS growth (current year est.): 20.6%
- Revenue growth (next year est.): 27.4%
- EPS growth (next year est.): 28.5%
What are Cloudflare, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $2.2B | Rising |
| Net Income | −$0.1B | Rising |
| Free Cash Flow | $0.3B | Rising |
| Gross Margin | 74.5% | Stable |
What is NET's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): 144.0x
How volatile is NET stock?
Cloudflare, Inc. has a beta of 1.88, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Cloudflare, Inc. have?
Cloudflare, Inc.'s balance sheet shows:
- Total Cash: $4.10B
- Total Debt: $3.52B
- Net Cash Position: $582.9M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Cloudflare, Inc.'s free cash flow?
Cloudflare, Inc. generated $388.0M in trailing twelve-month free cash flow (from $603.1M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Cloudflare, Inc. pay a dividend?
Cloudflare, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Cloudflare, Inc. at risk of going bankrupt?
Cloudflare, Inc.'s Altman Z-Score is 10.07, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Cloudflare, Inc. have a durable competitive advantage?
Cloudflare, Inc. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is NET's return on equity (ROE)?
Cloudflare, Inc.'s return on equity is -8.2%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy NET stock?
NET shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol NET
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is NET a value stock or speculative?
FairValueLabs classifies Cloudflare, Inc. as Pure Speculation. It lacks the financial stability or valuation margin typically required for value investing. This stock is considered high risk.
Who is the CEO of Cloudflare, Inc.?
The current CEO of Cloudflare, Inc. is Mr. Matthew Prince J.D..
What is NET's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-0.29
- Forward EPS (next 12 months est.): $1.44
- Analyst consensus EPS (this year): $1.12
- Analyst consensus EPS (next year): $1.44
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
NET analysis methodology: How we calculate fair value, Z-Scores, and moat ratings