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 19.46 places it in the safe zone. Our DCF model estimates intrinsic value at $0.00, suggesting the stock may be undervalued by 0%. Moat rating: 3.1/5 stars.
Could Cloudflare, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 19.46 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 | 0.4469 | 1.2 | 0.54 |
| B · Retained Earnings / Total Assets | RE / TA | -0.334 | 1.4 | -0.47 |
| C · EBIT / Total Assets | EBIT / TA | -0.0562 | 3.3 | -0.19 |
| D · Market Cap / Total Liabilities | MCap / TL | 31.9691 | 0.6 | 19.18 |
| E · Revenue / Total Assets | Rev / TA | 0.3928 | 1.0 | 0.39 |
How has NET's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2019 | 538.19 | Safe |
| 2020 | 412.21 | Safe |
| 2021 | 77.11 | Safe |
| 2022 | 28.27 | Safe |
| 2023 | 22.35 | Safe |
| 2024 | 21.87 | Safe |
| 2025 | 19.46 | Safe |
Source: Calculated from NET's latest 10-K filing on SEC EDGAR.
Cloudflare, Inc. — Traditional Valuation Does Not Apply
This stock does not have reliable earnings or cash flow history for fundamental valuation. The current price reflects market sentiment, momentum, or turnaround hopes rather than discountable cash flows. We provide risk metrics (Z-Score, financial health) but not a fair value estimate.
Free Cash Flow History
| Year | FCF | Growth |
|---|---|---|
| 2019 | $−0.0B | — |
| 2020 | $−0.1B | N/A |
| 2021 | $−0.1B | N/A |
| 2022 | $−0.1B | N/A |
| 2023 | $−0.0B | N/A |
| 2024 | $−0.0B | N/A |
| 2025 | $0.1B | N/A |
Source: FCF data from SEC EDGAR filings. Price via Yahoo Finance.
Does Cloudflare, Inc. have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up NET's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 1/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 5/5.
How stable is NET's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2019 | -4.1% | — |
| 2020 | -11.4% | Declining |
| 2021 | -8.7% | Rising |
| 2022 | -5.1% | Rising |
| 2023 | -5.8% | Stable |
| 2024 | -9.2% | Declining |
| 2025 | -7.4% | 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 | $1.3B | $1.0B | $0.4B | Rising |
| Net Income | −$0.2B | −$0.2B | −$0.1B | Declining |
| Free Cash Flow | $0.1B | −$0.0B | −$0.1B | Rising |
| Gross Margin | 76.3% | 76.1% | 76.6% | Stable |
Common questions about Cloudflare, Inc.
Is Cloudflare, Inc. at risk of going bankrupt?
Cloudflare, Inc.'s Altman Z-Score of 19.46 places it in the safe zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Cloudflare, Inc.'s intrinsic value based on DCF?
Our DCF model estimates Cloudflare, Inc.'s intrinsic value at $0.00 per share. The current margin of safety is 0.0%. This estimate is based on historical free cash flow trends and a risk-adjusted discount rate.
Does Cloudflare, Inc. have a competitive moat?
Cloudflare, Inc. receives a moat rating of 3.1 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Does Cloudflare, Inc. pay a dividend?
Cloudflare, Inc. does not currently pay a regular dividend, or has suspended its dividend. Check the dividend safety section for the latest status.
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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 20, 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