NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - Euronext Milan - US64110L1061 - Common Stock - Currency: EUR
Overall 1NFLX gets a fundamental rating of 7 out of 10. We evaluated 1NFLX against 43 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 valued quite expensive, but it does show an excellent growth. This makes 1NFLX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
1NFLX had positive earnings in the past year.
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
With an excellent Return On Assets value of 17.80%, 1NFLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1NFLX's Return On Equity of 38.58% is amongst the best of the industry. 1NFLX outperforms 90.70% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.93%, 1NFLX belongs to the top of the industry, outperforming 97.67% 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 9.53%.
The 3 year average ROIC (16.17%) for 1NFLX is below the current ROIC(22.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.8% | ||
| ROE | 38.58% | ||
| ROIC | 22.93% |
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 23.07%, 1NFLX belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
1NFLX's Operating Margin of 27.71% is amongst the best of the industry. 1NFLX outperforms 97.67% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
1NFLX has a Gross Margin (46.92%) which is in line with its industry peers.
1NFLX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.71% | ||
| PM (TTM) | 23.07% | ||
| GM | 46.92% |
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
Compared to 5 years ago, 1NFLX has less shares outstanding
1NFLX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.65 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NFLX (12.65) is better than 97.67% of its industry peers.
The Debt to FCF ratio of 1NFLX is 2.02, which is a good value as it means it would take 1NFLX, 2.02 years of fcf income to pay off all of its debts.
1NFLX's Debt to FCF ratio of 2.02 is fine compared to the rest of the industry. 1NFLX outperforms 69.77% of its industry peers.
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 46.51% 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 | 0.58 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 12.65 |
ROIC/WACC2.62
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.20 indicates that 1NFLX should not have too much problems paying its short term obligations.
The Current ratio of 1NFLX (1.20) is better than 69.77% of its industry peers.
1NFLX has a Quick Ratio of 1.20. 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 1.20. This is in the better half of the industry: 1NFLX outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.84% 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 15.00%.
The Revenue has been growing by 14.11% on average over the past years. This is quite good.
EPS 1Y (TTM)46.84%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%25.19%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
3.2 Future
1NFLX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.27% yearly.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y27.98%
EPS Next 2Y24.78%
EPS Next 3Y23.08%
EPS Next 5Y19.27%
Revenue Next Year14.38%
Revenue Next 2Y13.18%
Revenue Next 3Y12.42%
Revenue Next 5Y11.16%
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 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
The Price/Earnings ratio is 54.52, which means the current valuation is very expensive for 1NFLX.
Based on the Price/Earnings ratio, 1NFLX is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
1NFLX is valuated expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 37.37, the valuation of 1NFLX can be described as expensive.
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 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.52 | ||
| Fwd PE | 37.37 |
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 | 65.95 | ||
| EV/EBITDA | 17.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 23.08% in the coming years.
PEG (NY)1.95
PEG (5Y)1.48
EPS Next 2Y24.78%
EPS Next 3Y23.08%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (5/2/2025, 7:00:00 PM)
1014.6
+54.7 (+5.7%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.17%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap431.78B
Analysts80.74
Price Target1007.69 (-0.68%)
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)6.61%
Min EPS beat(2)-0.27%
Max EPS beat(2)13.49%
EPS beat(4)3
Avg EPS beat(4)4.4%
Min EPS beat(4)-0.27%
Max EPS beat(4)13.49%
EPS beat(8)6
Avg EPS beat(8)5.37%
EPS beat(12)8
Avg EPS beat(12)1.45%
EPS beat(16)11
Avg EPS beat(16)6.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.52%
Revenue beat(12)0
Avg Revenue beat(12)-1.65%
Revenue beat(16)0
Avg Revenue beat(16)-1.76%
PT rev (1m)-2.97%
PT rev (3m)23.33%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)7.13%
EPS NY rev (1m)0.49%
EPS NY rev (3m)4.52%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.52 | ||
| Fwd PE | 37.37 | ||
| P/S | 12.22 | ||
| P/FCF | 65.95 | ||
| P/OCF | 61.86 | ||
| P/B | 20.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.95 |
EPS(TTM)18.61
EY1.83%
EPS(NY)27.15
Fwd EY2.68%
FCF(TTM)15.38
FCFY1.52%
OCF(TTM)16.4
OCFY1.62%
SpS83
BVpS49.64
TBVpS-16.56
PEG (NY)1.95
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.8% | ||
| ROE | 38.58% | ||
| ROCE | 26.27% | ||
| ROIC | 22.93% | ||
| ROICexc | 28.58% | ||
| ROICexgc | 496.42% | ||
| OM | 27.71% | ||
| PM (TTM) | 23.07% | ||
| GM | 46.92% | ||
| FCFM | 18.53% |
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-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.02 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 3.12% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.5% | ||
| Profit Quality | 80.32% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 12.65 |
F-Score8
WACC8.74%
ROIC/WACC2.62
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)46.84%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%25.19%
EPS Next Y27.98%
EPS Next 2Y24.78%
EPS Next 3Y23.08%
EPS Next 5Y19.27%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year14.38%
Revenue Next 2Y13.18%
Revenue Next 3Y12.42%
Revenue Next 5Y11.16%
EBIT growth 1Y41.41%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year30.43%
EBIT Next 3Y21.76%
EBIT Next 5Y18.17%
FCF growth 1Y153.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y141.85%
OCF growth 3Y165.66%
OCF growth 5YN/A