NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
77.41 EUR
+0.57 (+0.74%)
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 45 industry peers in the Entertainment industry. 1NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. 1NFLX is not overvalued while it is showing excellent growth. This is an interesting combination. This makes 1NFLX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1NFLX was profitable.
1NFLX had a positive operating cash flow in the past year.
1NFLX had positive earnings in each of the past 5 years.
1NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NFLX has a Return On Assets of 18.99%. This is amongst the best in the industry. 1NFLX outperforms 97.78% of its industry peers.
1NFLX has a better Return On Equity (40.19%) than 88.89% of its industry peers.
With an excellent Return On Invested Capital value of 24.41%, 1NFLX belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
1NFLX had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 9.60%.
The last Return On Invested Capital (24.41%) for 1NFLX is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROIC | 24.41% |
ROA(3y)12.2%
ROA(5y)11.02%
ROE(3y)27.7%
ROE(5y)28.07%
ROIC(3y)16.17%
ROIC(5y)15.85%
1.3 Margins
1NFLX has a Profit Margin of 24.05%. This is amongst the best in the industry. 1NFLX outperforms 97.78% of its industry peers.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
With an excellent Operating Margin value of 29.14%, 1NFLX belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
1NFLX's Gross Margin of 48.09% is in line compared to the rest of the industry. 1NFLX outperforms 42.22% of its industry peers.
1NFLX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% |
OM growth 3Y8.59%
OM growth 5Y15.63%
PM growth 3Y9.04%
PM growth 5Y19.25%
GM growth 3Y3.42%
GM growth 5Y3.77%
2. Health
2.1 Basic Checks
1NFLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1NFLX has less shares outstanding
The number of shares outstanding for 1NFLX has been reduced compared to 5 years ago.
Compared to 1 year ago, 1NFLX has an improved debt to assets ratio.
2.2 Solvency
1NFLX has an Altman-Z score of 10.59. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.59, 1NFLX belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
1NFLX has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
1NFLX has a better Debt to FCF ratio (1.61) than 77.78% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1NFLX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, 1NFLX perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for 1NFLX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.59 |
ROIC/WACC2.33
WACC10.46%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX has a better Current ratio (1.33) than 73.33% of its industry peers.
A Quick Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX has a Quick ratio of 1.33. This is in the better half of the industry: 1NFLX outperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
Measured over the past years, 1NFLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.86% on average per year.
Looking at the last year, 1NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.41% in the last year.
The Revenue has been growing by 14.11% on average over the past years. This is quite good.
EPS 1Y (TTM)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
3.2 Future
The Earnings Per Share is expected to grow by 22.16% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.77% on average over the next years. This is quite good.
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y22.16%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
Revenue Next 5Y11.77%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.76, 1NFLX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1NFLX is valued a bit cheaper than 75.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, 1NFLX is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.34 indicates a quite expensive valuation of 1NFLX.
Based on the Price/Forward Earnings ratio, 1NFLX is valued a bit cheaper than 62.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1NFLX to the average of the S&P500 Index (23.57), we can say 1NFLX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 27.34 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA is on the same level as the industry average.
1NFLX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.86 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1NFLX has an outstanding profitability rating, which may justify a higher PE ratio.
1NFLX's earnings are expected to grow with 26.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)1.02
EPS Next 2Y29.16%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
No dividends for 1NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1NFLX (1/7/2026, 7:00:00 PM)
77.41
+0.57 (+0.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners79.69%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap328.94B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target113.1 (46.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.9%
Min EPS beat(2)-17.39%
Max EPS beat(2)-0.4%
EPS beat(4)1
Avg EPS beat(4)-1.14%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.49%
EPS beat(8)4
Avg EPS beat(8)0.94%
EPS beat(12)6
Avg EPS beat(12)-4.16%
EPS beat(16)10
Avg EPS beat(16)4.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.36%
Revenue beat(12)0
Avg Revenue beat(12)-1.67%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)-5.55%
PT rev (3m)-90.34%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-89.9%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-90.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.76 | ||
| Fwd PE | 27.34 | ||
| P/S | 8.86 | ||
| P/FCF | 42.86 | ||
| P/OCF | 40.14 | ||
| P/B | 14.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)2.05
EY2.65%
EPS(NY)2.83
Fwd EY3.66%
FCF(TTM)1.81
FCFY2.33%
OCF(TTM)1.93
OCFY2.49%
SpS8.74
BVpS5.23
TBVpS-1.35
PEG (NY)1.21
PEG (5Y)1.02
Graham Number15.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROCE | 27.97% | ||
| ROIC | 24.41% | ||
| ROICexc | 30.76% | ||
| ROICexgc | 340.72% | ||
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% | ||
| FCFM | 20.67% |
ROA(3y)12.2%
ROA(5y)11.02%
ROE(3y)27.7%
ROE(5y)28.07%
ROIC(3y)16.17%
ROIC(5y)15.85%
ROICexc(3y)20.02%
ROICexc(5y)19.87%
ROICexgc(3y)637.19%
ROICexgc(5y)N/A
ROCE(3y)18.53%
ROCE(5y)18.16%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y14.95%
ROICexc growth 5Y21.57%
OM growth 3Y8.59%
OM growth 5Y15.63%
PM growth 3Y9.04%
PM growth 5Y19.25%
GM growth 3Y3.42%
GM growth 5Y3.77%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 3.76% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.26% | ||
| Profit Quality | 85.96% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 10.59 |
F-Score8
WACC10.46%
ROIC/WACC2.33
Cap/Depr(3y)2.68%
Cap/Depr(5y)3.36%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.44%
Profit Quality(3y)81.18%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y22.16%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year34.36%
EBIT Next 3Y25.65%
EBIT Next 5Y21.45%
FCF growth 1Y57.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.12%
OCF growth 3Y165.66%
OCF growth 5YN/A
NETFLIX INC / 1NFLX.MI FAQ
What is the ChartMill fundamental rating of NETFLIX INC (1NFLX.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1NFLX.MI.
What is the valuation status of NETFLIX INC (1NFLX.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to NETFLIX INC (1NFLX.MI). This can be considered as Fairly Valued.
How profitable is NETFLIX INC (1NFLX.MI) stock?
NETFLIX INC (1NFLX.MI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of NETFLIX INC (1NFLX.MI) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (1NFLX.MI) is 37.76 and the Price/Book (PB) ratio is 14.81.