NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - Euronext Milan - US64110L1061 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1NFLX. 1NFLX was compared to 47 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making 1NFLX a very profitable company, without any liquidiy or solvency issues. 1NFLX is growing strongly while it is still valued neutral. This is a good combination! These ratings could make 1NFLX a good candidate 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.
Each year in the past 5 years 1NFLX has been profitable.
Each year in the past 5 years 1NFLX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.30%, 1NFLX belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
Looking at the Return On Equity, with a value of 41.07%, 1NFLX belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
1NFLX has a better Return On Invested Capital (24.32%) than 95.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NFLX is significantly above the industry average of 10.35%.
The last Return On Invested Capital (24.32%) for 1NFLX is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.3% | ||
| ROE | 41.07% | ||
| ROIC | 24.32% |
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
The Profit Margin of 1NFLX (24.58%) is better than 97.87% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
The Operating Margin of 1NFLX (29.51%) is better than 97.87% of its industry peers.
1NFLX's Operating Margin has improved in the last couple of years.
1NFLX has a Gross Margin (48.49%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1NFLX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.51% | ||
| PM (TTM) | 24.58% | ||
| GM | 48.49% |
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
1NFLX has less shares outstanding than it did 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 13.23. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1NFLX (13.23) is better than 97.87% of its industry peers.
1NFLX has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.70, 1NFLX is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
1NFLX has a Debt/Equity ratio of 0.58. This is a neutral value indicating 1NFLX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, 1NFLX is in line with its industry, outperforming 42.55% of the companies in the same 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 | 0.58 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 13.23 |
ROIC/WACC2.74
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 1NFLX should not have too much problems paying its short term obligations.
The Current ratio of 1NFLX (1.34) is better than 72.34% of its industry peers.
A Quick Ratio of 1.34 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX's Quick ratio of 1.34 is fine compared to the rest of the industry. 1NFLX outperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.69% 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.
1NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.84%.
1NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.11% yearly.
EPS 1Y (TTM)46.69%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%47.34%
Revenue 1Y (TTM)14.84%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%15.9%
3.2 Future
The Earnings Per Share is expected to grow by 20.15% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1NFLX will show a quite strong growth in Revenue. The Revenue will grow by 11.09% on average per year.
EPS Next Y31.57%
EPS Next 2Y26.62%
EPS Next 3Y24.69%
EPS Next 5Y20.15%
Revenue Next Year14.43%
Revenue Next 2Y13.4%
Revenue Next 3Y12.59%
Revenue Next 5Y11.09%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 49.94, the valuation of 1NFLX can be described as expensive.
Based on the Price/Earnings ratio, 1NFLX is valued a bit cheaper than the industry average as 63.83% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1NFLX to the average of the S&P500 Index (27.91), we can say 1NFLX is valued expensively.
Based on the Price/Forward Earnings ratio of 36.86, the valuation of 1NFLX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1NFLX.
The average S&P500 Price/Forward Earnings ratio is at 37.11. 1NFLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.94 | ||
| Fwd PE | 36.86 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1NFLX.
1NFLX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.67 | ||
| EV/EBITDA | 17.93 |
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.
A more expensive valuation may be justified as 1NFLX's earnings are expected to grow with 24.69% in the coming years.
PEG (NY)1.58
PEG (5Y)1.35
EPS Next 2Y26.62%
EPS Next 3Y24.69%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (7/29/2025, 7:00:00 PM)
1016.2
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.57%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap432.46B
Analysts80.71
Price Target1102.76 (8.52%)
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)1
Avg EPS beat(2)6.54%
Min EPS beat(2)-0.4%
Max EPS beat(2)13.49%
EPS beat(4)2
Avg EPS beat(4)4.08%
Min EPS beat(4)-0.4%
Max EPS beat(4)13.49%
EPS beat(8)5
Avg EPS beat(8)3.72%
EPS beat(12)7
Avg EPS beat(12)0.86%
EPS beat(16)11
Avg EPS beat(16)7.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.35%
Revenue beat(12)0
Avg Revenue beat(12)-1.57%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)7.51%
PT rev (3m)9.43%
EPS NQ rev (1m)4.49%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0.33%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.94 | ||
| Fwd PE | 36.86 | ||
| P/S | 11.96 | ||
| P/FCF | 58.67 | ||
| P/OCF | 54.99 | ||
| P/B | 19.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.93 |
EPS(TTM)20.35
EY2%
EPS(NY)27.57
Fwd EY2.71%
FCF(TTM)17.32
FCFY1.7%
OCF(TTM)18.48
OCFY1.82%
SpS84.95
BVpS50.84
TBVpS-14.54
PEG (NY)1.58
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.3% | ||
| ROE | 41.07% | ||
| ROCE | 27.86% | ||
| ROIC | 24.32% | ||
| ROICexc | 30.03% | ||
| ROICexgc | 292.03% | ||
| OM | 29.51% | ||
| PM (TTM) | 24.58% | ||
| GM | 48.49% | ||
| FCFM | 20.39% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 3.6% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.23% | ||
| Profit Quality | 82.95% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 13.23 |
F-Score7
WACC8.89%
ROIC/WACC2.74
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)46.69%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%47.34%
EPS Next Y31.57%
EPS Next 2Y26.62%
EPS Next 3Y24.69%
EPS Next 5Y20.15%
Revenue 1Y (TTM)14.84%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%15.9%
Revenue Next Year14.43%
Revenue Next 2Y13.4%
Revenue Next 3Y12.59%
Revenue Next 5Y11.09%
EBIT growth 1Y42.28%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year33.47%
EBIT Next 3Y22.92%
EBIT Next 5Y19.31%
FCF growth 1Y99.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y96.35%
OCF growth 3Y165.66%
OCF growth 5YN/A