NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - BIT:1NFLX - US64110L1061 - Common Stock
97.16 EUR
+2.01 (+2.11%)
We assign a fundamental rating of 8 out of 10 to 1NFLX. 1NFLX was compared to 45 industry peers in the Entertainment industry. 1NFLX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1NFLX is growing strongly while it also seems undervalued. This is an interesting combination With these ratings, 1NFLX could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1NFLX was profitable.
In the past year 1NFLX had a positive cash flow from operations.
In the past 5 years 1NFLX has always been profitable.
Each year in the past 5 years 1NFLX had a positive operating cash flow.
1.2 Ratios
1NFLX has a better Return On Assets (18.99%) than 100.00% of its industry peers.
1NFLX's Return On Equity of 40.19% is amongst the best of the industry. 1NFLX outperforms 93.33% of its industry peers.
With an excellent Return On Invested Capital value of 24.41%, 1NFLX belongs to the best of the industry, outperforming 100.00% 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 9.82%.
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 100.00% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
1NFLX has a Operating Margin of 29.14%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
1NFLX has a Gross Margin (48.09%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NFLX is creating value.
1NFLX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1NFLX has been reduced compared to 5 years ago.
1NFLX has a better debt/assets ratio than last year.
2.2 Solvency
1NFLX has an Altman-Z score of 3.63. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
1NFLX has a better Altman-Z score (3.63) than 86.67% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.61, 1NFLX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that 1NFLX is somewhat dependend on debt financing.
1NFLX has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
Although 1NFLX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 3.63 |
ROIC/WACC3.27
WACC7.47%
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 75.56% 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 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.48% over the past year.
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
1NFLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.82% yearly.
1NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.77% yearly.
EPS Next Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.70, which indicates a rather cheap valuation of 1NFLX.
97.78% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.51, 1NFLX is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.41, the valuation of 1NFLX can be described as very cheap.
Based on the Price/Forward Earnings ratio, 1NFLX is valued cheaply inside the industry as 97.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.98. 1NFLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.7 | ||
| Fwd PE | 3.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NFLX indicates a rather cheap valuation: 1NFLX is cheaper than 95.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NFLX indicates a rather cheap valuation: 1NFLX is cheaper than 82.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.34 | ||
| EV/EBITDA | 1.84 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of 1NFLX may justify a higher PE ratio.
A more expensive valuation may be justified as 1NFLX's earnings are expected to grow with 25.74% in the coming years.
PEG (NY)0.15
PEG (5Y)0.13
EPS Next 2Y29.04%
EPS Next 3Y25.74%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (11/18/2025, 7:00:00 PM)
97.16
+2.01 (+2.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap41.29B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target1178.91 (1113.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.67%
PT rev (3m)0.74%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)-2.94%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.7 | ||
| Fwd PE | 3.41 | ||
| P/S | 1.1 | ||
| P/FCF | 5.34 | ||
| P/OCF | 5 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.84 |
EPS(TTM)20.66
EY21.26%
EPS(NY)28.49
Fwd EY29.32%
FCF(TTM)18.21
FCFY18.74%
OCF(TTM)19.44
OCFY20.01%
SpS88.08
BVpS52.7
TBVpS-13.58
PEG (NY)0.15
PEG (5Y)0.13
Graham Number156.52
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 | 3.63 |
F-Score8
WACC7.47%
ROIC/WACC3.27
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 Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
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 8 / 10 to 1NFLX.MI.
What is the valuation status for 1NFLX stock?
ChartMill assigns a valuation rating of 9 / 10 to NETFLIX INC (1NFLX.MI). This can be considered as Undervalued.
How profitable is NETFLIX INC (1NFLX.MI) stock?
NETFLIX INC (1NFLX.MI) has a profitability rating of 9 / 10.
How financially healthy is NETFLIX INC?
The financial health rating of NETFLIX INC (1NFLX.MI) is 8 / 10.
Can you provide the expected EPS growth for 1NFLX stock?
The Earnings per Share (EPS) of NETFLIX INC (1NFLX.MI) is expected to grow by 30.93% in the next year.