NET NET

Name: NET Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 4, 2026

Price at analysis: $218.19

Crucible Score

48.9

C-

Quality × Value Composite

KQI — Quality

64.7

B-

Fundamental Quality Index

KVI — Value

29.5

Valuation Attractiveness Index

Crucible Verdict — NET

Cloudflare (NET) presents a classic growth-quality versus value disconnect, with strong moat durability (86) and growth profile (84) offset by weak financial metrics dragging the overall score to 48.9. The 16% premium to fair value looks steep given the poor financial quality score of just 36, despite an impressive 94% earnings beat rate. Insider selling signals caution ahead of what should be a compelling long-term story.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality⚠

36.5

Growth Profile⚠

83.7

Moat Durability

86.0

Management Effectiveness

55.1

Diversification & Resilience

48.0

Market Position

74.0

Weakest dimension: Financial Quality (36.5)

◆ KVI Value Dimensions

DCF Margin of Safety

30.8

FCF Yield & Cash Returns

14.8

Relative Valuation

20.8

Growth-Adjusted Value

35.0

Historical Valuation

70.2

Macro Context

9.7

◆ DCF Valuation Scenarios

Bear Case

$108.52

Base Case

$195.37

Bull Case

$336.84

Price at Analysis

$218.19

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$108.52	18.0%	18.0%	15.5%
🟢 Base	$195.37	22.0%	22.0%	14.5%
🟢 Bull	$336.84	26.0%	26.0%	13.5%

Key Assumptions: Revenue growth anchored to trailing 5-year CAGR of ~35% decelerating toward 15-25% over the projection period. WACC calculated using CAPM with 4.39% risk-free rate, beta of 2.03, and 5.5% ERP yielding ~15.6% cost of equity; given minimal equity weighting in capital structure, WACC ranges 13.5-15.5% across scenarios. Operating margins expected to expand from current negative levels toward 18-26% terminal margins as the company scales, reflecting the high-margin SaaS business model with significant operating leverage.

◆ Financial Snapshot

Profitability

Gross Margin74.7%

Operating Margin-9.4%

Net Margin-4.7%

ROIC-4.4%

ROE-3.6%

Balance Sheet

Balance SheetCR: 1.98

Cash Conversion

Capital IntensityCapex/Rev: 15.8%

Altman Z-Score10.25 (Safe)

Piotroski F-Score2/9 (Weak)

Growth

Revenue CAGR34.8% CAGR

Earnings CAGRInsufficient data

Growth ConsistencyCV: 0.23

Segment BreadthInsufficient segments

Quarterly TrendMargin↑, Exp↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOMatthew Prince · 16 years

CEO Ownership53.1%

Compensation0% performance-based

Insider ActivitySelling

Earnings Beat Rate94% (21/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 4, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.