The Screen · Communication Services · Entertainment
Roku Inc
ROKU · USD · Market cap $23.4B · 3,600 employees
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally.
FAIL · Does not pass the screen
157.70 USD
At the last full screen 2026-09-02
Screened 2026-09-02 · the tape above runs as of 22:12 UTC · 11 Sep · two dates, stated on purpose · verdict and workings shown in full · never trimmed
The Label · The Season, Not the Day
This name holds its accumulation label.
Roku Inc holds its Accumulation at $157.70. Consolidating, no directional conviction, held for 56 days.
As held on the ledger · 2026-09-02
Phase
Accumulation
Quantitative state
Consolidating, no directional conviction, held for 56 days
Price at the screen
$157.70
Valuation
66.82 trailing · 40.20 forward price to earnings
Values screen
FAIL· score 70.0
Beta
2.04
The Workings
Five Screens, Shown in Full
Does not pass. Accounts receivable
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
11.80%
Below 33%
Interest-bearing debt is just 11.8% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
16.47%
Below 33%
Cash held in interest-bearing accounts and securities is 16.5% of assets, under the one-third limit.
Pass
Receivables
55.64%
Below 49%
Money owed to the company is 55.6% of assets, above the 49% limit.
Fail
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-02 screen. The gold marker is the market price at the same screen. The price runs 21.9% above the base estimate.
Third-party analyst targets: 20 covering, consensus Hold. The average target sits +1% from the screen price.
Reading the gap · Both our model and the Street see limited upside at this price.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-02 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Streaming platform priced well past its value
Millions tap a button on the sofa and land straight inside Roku's platform to pick their next show. The company sits on a narrow moat in a crowded streaming market, yet its shares trade at a 16 percent premium to our fair value with a forward multiple of 39 times earnings.
Revenue is still rising at 22 percent, but thin 4 percent profit margins and an 8 percent return on equity do not support the current price. The ethical screen clears, yet the numbers show no margin of safety and therefore no opportunity here.
Bigger device makers and content owners can squeeze platform economics at any time, and analyst targets sit well above our own valuation. Peak growth plus a high multiple often signals a value trap rather than a bargain.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-09-11Accumulation$157.70+9.6%Entry 5
The framework reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 9.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (22 analysts) rates it buy, with a mean price target of $152. Insiders have been net sellers over the past quarter.
The framework has shifted from markdown to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 0.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (22 analysts) rates it buy, with a mean price target of $152.
2026-07-18Markdown$143.66+0.0%Entry 3
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 22% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 46%. Our forward projection puts the odds of a 10% gain over the next month near 35%. The street (22 analysts) rates it buy, with a mean price target of $152.
2026-07-03Markdown$143.66+0.0%Entry 2
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markdown$143.66Entry 1
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
