NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - BIT:1NFLX - US64110L1061 - Common Stock
95.61 EUR
+0.46 (+0.48%)
Taking everything into account, 1NFLX scores 8 out of 10 in our fundamental rating. 1NFLX was compared to 45 industry peers in the Entertainment industry. 1NFLX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1NFLX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make 1NFLX a good candidate for value and 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.
In the past 5 years 1NFLX always reported a positive cash flow from operatings.
1.2 Ratios
1NFLX's Return On Assets of 18.99% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
The Return On Equity of 1NFLX (40.19%) is better than 93.33% of its industry peers.
The Return On Invested Capital of 1NFLX (24.41%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NFLX is significantly above the industry average of 9.82%.
The 3 year average ROIC (16.17%) for 1NFLX is below the current ROIC(24.41%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 24.05%, 1NFLX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
1NFLX has a Operating Margin of 29.14%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Operating Margin has improved in the last couple of years.
1NFLX has a Gross Margin of 48.09%. This is comparable to the rest of the industry: 1NFLX outperforms 42.22% of its industry peers.
In the last couple of years the Gross Margin of 1NFLX has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NFLX is creating value.
1NFLX has less shares outstanding than it did 1 year ago.
1NFLX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1NFLX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.63 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NFLX (3.63) is better than 86.67% of its industry peers.
The Debt to FCF ratio of 1NFLX is 1.61, which is an excellent value as it means it would take 1NFLX, only 1.61 years of fcf income to pay off all of its debts.
1NFLX has a Debt to FCF ratio of 1.61. This is in the better half of the industry: 1NFLX outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1NFLX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, 1NFLX is in line with its industry, outperforming 51.11% 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 3.63 |
ROIC/WACC3.27
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, 1NFLX is in the better half of the industry, outperforming 75.56% of the companies in the same industry.
1NFLX has a Quick Ratio of 1.33. This is a normal value and indicates that 1NFLX is financially healthy and should not expect problems in meeting 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
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.
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)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 22.82% 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 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.
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
Based on the Price/Earnings ratio of 4.63, the valuation of 1NFLX can be described as very cheap.
Based on the Price/Earnings ratio, 1NFLX is valued cheaper than 97.78% of the companies in the same industry.
1NFLX is valuated cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.36, which indicates a rather cheap valuation of 1NFLX.
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 35.39. 1NFLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.63 | ||
| Fwd PE | 3.36 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1NFLX is cheaper than 95.56% of the companies 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 | 5.25 | ||
| EV/EBITDA | 1.84 |
4.3 Compensation for Growth
1NFLX's 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.
1NFLX's earnings are expected to grow with 25.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)0.13
EPS Next 2Y29.04%
EPS Next 3Y25.74%
5. Dividend
5.1 Amount
No dividends for 1NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (11/19/2025, 7:00:00 PM)
95.61
+0.46 (+0.48%)
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 Cap40.63B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target1178.91 (1133.04%)
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 | 4.63 | ||
| Fwd PE | 3.36 | ||
| P/S | 1.09 | ||
| P/FCF | 5.25 | ||
| P/OCF | 4.92 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.84 |
EPS(TTM)20.66
EY21.61%
EPS(NY)28.49
Fwd EY29.8%
FCF(TTM)18.21
FCFY19.04%
OCF(TTM)19.44
OCFY20.33%
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
WACC7.46%
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 10 / 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.