NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - BIT:1NFLX - US64110L1061 - Common Stock
1067.4 EUR
+9.8 (+0.93%)
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 45 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 shows excellent growth, but is valued quite expensive already. These ratings would make 1NFLX suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
1NFLX had positive earnings in the past year.
In the past year 1NFLX had a positive cash flow from operations.
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
1NFLX's Return On Assets of 19.30% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
The Return On Equity of 1NFLX (41.07%) is better than 93.33% of its industry peers.
1NFLX has a Return On Invested Capital of 24.32%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1NFLX is significantly above the industry average of 10.27%.
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 100.00% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.51%, 1NFLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1NFLX's Operating Margin has improved in the last couple of years.
1NFLX has a Gross Margin of 48.49%. This is comparable 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 | 29.51% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NFLX is creating value.
The number of shares outstanding for 1NFLX has been reduced compared to 1 year ago.
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 13.76. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
1NFLX has a better Altman-Z score (13.76) than 95.56% of its industry peers.
The Debt to FCF ratio of 1NFLX is 1.70, which is an excellent value as it means it would take 1NFLX, only 1.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.70, 1NFLX belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that 1NFLX is somewhat dependend on debt financing.
1NFLX has a Debt to Equity ratio (0.58) 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 | 0.58 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 13.76 |
ROIC/WACC2.86
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX has a Current ratio of 1.34. This is in the better half of the industry: 1NFLX outperforms 80.00% of its industry peers.
1NFLX has a Quick Ratio of 1.34. This is a normal value and indicates that 1NFLX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1NFLX (1.34) is better than 80.00% 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.
The Earnings Per Share has been growing by 36.86% on average over the past years. This is a very strong growth
Looking at the last year, 1NFLX shows a quite strong growth in Revenue. The Revenue has grown by 14.84% in the last year.
Measured over the past years, 1NFLX shows a quite strong growth in Revenue. The Revenue has been growing by 14.11% on average per year.
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 22.09% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.02% on average over the next years. This is quite good.
EPS Next Y34.91%
EPS Next 2Y28.88%
EPS Next 3Y26.19%
EPS Next 5Y22.09%
Revenue Next Year15.8%
Revenue Next 2Y14.33%
Revenue Next 3Y13.22%
Revenue Next 5Y12.02%
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
1NFLX is valuated quite expensively with a Price/Earnings ratio of 53.00.
Compared to the rest of the industry, the Price/Earnings ratio of 1NFLX indicates a somewhat cheap valuation: 1NFLX is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.77. 1NFLX is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 37.77 indicates a quite expensive valuation of 1NFLX.
1NFLX's Price/Forward Earnings ratio is in line with the industry average.
1NFLX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53 | ||
| Fwd PE | 37.77 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is in line with the industry average.
1NFLX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.19 | ||
| EV/EBITDA | 18.81 |
4.3 Compensation for Growth
1NFLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1NFLX may justify a higher PE ratio.
1NFLX's earnings are expected to grow with 26.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.52
PEG (5Y)1.44
EPS Next 2Y28.88%
EPS Next 3Y26.19%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (10/21/2025, 7:00:00 PM)
1067.4
+9.8 (+0.93%)
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 Cap453.57B
Analysts80.71
Price Target1171.02 (9.71%)
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)0.99%
PT rev (3m)10.47%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)4.39%
EPS NY rev (1m)0.07%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53 | ||
| Fwd PE | 37.77 | ||
| P/S | 12.68 | ||
| P/FCF | 62.19 | ||
| P/OCF | 58.28 | ||
| P/B | 21.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.81 |
EPS(TTM)20.14
EY1.89%
EPS(NY)28.26
Fwd EY2.65%
FCF(TTM)17.16
FCFY1.61%
OCF(TTM)18.31
OCFY1.72%
SpS84.19
BVpS50.38
TBVpS-14.41
PEG (NY)1.52
PEG (5Y)1.44
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 | 13.76 |
F-Score7
WACC8.49%
ROIC/WACC2.86
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 Y34.91%
EPS Next 2Y28.88%
EPS Next 3Y26.19%
EPS Next 5Y22.09%
Revenue 1Y (TTM)14.84%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%15.9%
Revenue Next Year15.8%
Revenue Next 2Y14.33%
Revenue Next 3Y13.22%
Revenue Next 5Y12.02%
EBIT growth 1Y42.28%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
EBIT Next 5Y21.46%
FCF growth 1Y99.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y96.35%
OCF growth 3Y165.66%
OCF growth 5YN/A