NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - BIT:1NFLX - US64110L1061 - Common Stock
1038.8 EUR
+10 (+0.97%)
Overall 1NFLX gets a fundamental rating of 7 out of 10. We evaluated 1NFLX against 44 industry peers in the Entertainment industry. 1NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. 1NFLX is valued quite expensively, but it does show have an excellent growth rating. 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.
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 (19.30%) than 97.87% of its industry peers.
The Return On Equity of 1NFLX (41.07%) is better than 89.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.32%, 1NFLX belongs to the top of the industry, outperforming 95.74% 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 9.22%.
The 3 year average ROIC (16.17%) for 1NFLX is below the current ROIC(24.32%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
1NFLX's Operating Margin of 29.51% is amongst the best of the industry. 1NFLX outperforms 97.87% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
Looking at the Gross Margin, with a value of 48.49%, 1NFLX is in line with its industry, outperforming 40.43% of the companies in the same 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.
1NFLX has less shares outstanding than it did 1 year ago.
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 13.65. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1NFLX (13.65) is better than 95.74% 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.
With a decent Debt to FCF ratio value of 1.70, 1NFLX is doing good in the industry, outperforming 74.47% 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.
The Debt to Equity ratio of 1NFLX (0.58) 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 | 13.65 |
ROIC/WACC2.82
WACC8.62%
2.3 Liquidity
1NFLX has a Current 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.
With a decent Current ratio value of 1.34, 1NFLX is doing good in the industry, outperforming 76.60% of the companies in the same industry.
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.
1NFLX's Quick ratio of 1.34 is fine compared to the rest of the industry. 1NFLX outperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
1NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.69%, 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.
The Revenue has grown by 14.84% in the past year. This is quite good.
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 21.86% on average over the next years. This is a very strong growth
1NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.01% yearly.
EPS Next Y34.81%
EPS Next 2Y28.83%
EPS Next 3Y26.05%
EPS Next 5Y21.86%
Revenue Next Year15.8%
Revenue Next 2Y14.33%
Revenue Next 3Y13.21%
Revenue Next 5Y12.01%
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.
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
A Price/Earnings ratio of 51.94 indicates a quite expensive valuation of 1NFLX.
Compared to the rest of the industry, the Price/Earnings ratio of 1NFLX indicates a somewhat cheap valuation: 1NFLX is cheaper than 61.70% of the companies listed in the same industry.
1NFLX is valuated expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 37.04, 1NFLX can be considered very expensive at the moment.
1NFLX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.86. 1NFLX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.94 | ||
| Fwd PE | 37.04 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA is on the same level as the industry average.
1NFLX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.94 | ||
| EV/EBITDA | 18.62 |
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 26.05% in the coming years.
PEG (NY)1.49
PEG (5Y)1.41
EPS Next 2Y28.83%
EPS Next 3Y26.05%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (9/19/2025, 7:00:00 PM)
1038.8
+10 (+0.97%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap441.42B
Analysts80.36
Price Target1159.5 (11.62%)
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)-0.91%
PT rev (3m)13.04%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)5%
EPS NY rev (1m)0%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.94 | ||
| Fwd PE | 37.04 | ||
| P/S | 12.43 | ||
| P/FCF | 60.94 | ||
| P/OCF | 57.11 | ||
| P/B | 20.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.62 |
EPS(TTM)20
EY1.93%
EPS(NY)28.04
Fwd EY2.7%
FCF(TTM)17.05
FCFY1.64%
OCF(TTM)18.19
OCFY1.75%
SpS83.6
BVpS50.03
TBVpS-14.31
PEG (NY)1.49
PEG (5Y)1.41
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 | 13.65 |
F-Score7
WACC8.62%
ROIC/WACC2.82
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 Y34.81%
EPS Next 2Y28.83%
EPS Next 3Y26.05%
EPS Next 5Y21.86%
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 3Y13.21%
Revenue Next 5Y12.01%
EBIT growth 1Y42.28%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year38.09%
EBIT Next 3Y25.42%
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