Qualtix Stock Brief
Cloudflare, Inc. (NET) stock analysis: business quality, valuation, and entry timing
Cloudflare operates a global network that provides security, performance, and developer services for websites and applications. High gross margins and growth come with thin operating profits and a high valuation. Public Qualtix model snapshot from 2026-10-26 for NET: business quality 52/100, a mixed model reading and valuation Expensive. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates NET with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
NET public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 30.6% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 15.1% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | -14.1% | Profitability margin | FMP, computed |
| Gross margin | 72.6% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | -6.9% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | -12.7% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $4.2B / Debt $3.5B | Balance-sheet context | FMP, reported |
| Market cap | $118.3B | Company size context | FMP, reported |
Qualtix view
- Business quality: 52/100, a mixed model reading.
- Valuation is currently labeled Expensive, so the stock needs stronger business evidence or a better price to improve the setup.
Today's verdict
- Today's model verdict and Entry Timing for NET update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-06-30.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business Quality and Valuation are shown above; the full brief adds the complete model view.
What weakens the current view
- Business quality remains below the model's stronger-company threshold (52/100).
- Valuation is currently labeled Expensive, so price still matters.
- Beta of 1.65 signals higher market sensitivity and potential volatility.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Start with the weaker Business Quality signal (52/100): review revenue durability, margins, cash generation, and balance-sheet pressure.
- Compare NET's Expensive valuation with sector peers and ask what growth or margin evidence would justify the premium.
- Compare NET with ZS and DDOG to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.