NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - Euronext Milan - US64110L1061 - Common Stock - Currency: EUR
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 49 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 shows excellent growth, but is valued quite expensive already. 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.
1NFLX had positive earnings in each of the past 5 years.
Each year in the past 5 years 1NFLX had a positive operating cash flow.
1.2 Ratios
1NFLX has a Return On Assets of 17.80%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
The Return On Equity of 1NFLX (38.58%) is better than 91.84% of its industry peers.
1NFLX has a Return On Invested Capital of 22.93%. This is amongst the best in the industry. 1NFLX outperforms 97.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NFLX is significantly above the industry average of 9.64%.
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
1NFLX has a Profit Margin of 23.07%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
1NFLX has a Operating Margin of 27.71%. 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 46.92%. This is comparable to the rest of the industry: 1NFLX outperforms 46.94% of 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
The number of shares outstanding for 1NFLX has been reduced compared to 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 13.25 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.25, 1NFLX belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
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 has a Debt to FCF ratio of 2.02. This is in the better half of the industry: 1NFLX outperforms 75.51% of its industry peers.
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 in line with its industry peers.
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 | 2.02 | ||
| Altman-Z | 13.25 |
ROIC/WACC2.53
WACC9.07%
2.3 Liquidity
1NFLX has a Current 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.
Looking at the Current ratio, with a value of 1.20, 1NFLX is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.20, 1NFLX is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
1NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.84%, 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 15.00% 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)46.84%
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
Based on estimates for the next years, 1NFLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.27% on average per year.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y31.11%
EPS Next 2Y26.05%
EPS Next 3Y24.33%
EPS Next 5Y19.27%
Revenue Next Year14.35%
Revenue Next 2Y13.23%
Revenue Next 3Y12.46%
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
Based on the Price/Earnings ratio of 56.15, the valuation of 1NFLX can be described as expensive.
1NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1NFLX is cheaper than 65.31% of the companies in the same industry.
1NFLX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.91.
A Price/Forward Earnings ratio of 37.71 indicates a quite expensive valuation of 1NFLX.
1NFLX's Price/Forward Earnings is on the same level as the industry average.
1NFLX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.15 | ||
| Fwd PE | 37.71 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is in line with the industry average.
1NFLX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.91 | ||
| EV/EBITDA | 18.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1NFLX may justify a higher PE ratio.
1NFLX's earnings are expected to grow with 24.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)1.52
EPS Next 2Y26.05%
EPS Next 3Y24.33%
5. Dividend
5.1 Amount
No dividends for 1NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (5/20/2025, 7:00:00 PM)
1050.6
-2 (-0.19%)
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 Cap447.10B
Analysts81.05
Price Target1009.03 (-3.96%)
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)0.75%
PT rev (3m)-2.49%
EPS NQ rev (1m)9.16%
EPS NQ rev (3m)11.92%
EPS NY rev (1m)2.44%
EPS NY rev (3m)2.94%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.15 | ||
| Fwd PE | 37.71 | ||
| P/S | 12.59 | ||
| P/FCF | 67.91 | ||
| P/OCF | 63.7 | ||
| P/B | 21.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.99 |
EPS(TTM)18.71
EY1.78%
EPS(NY)27.86
Fwd EY2.65%
FCF(TTM)15.47
FCFY1.47%
OCF(TTM)16.49
OCFY1.57%
SpS83.47
BVpS49.93
TBVpS-16.65
PEG (NY)1.8
PEG (5Y)1.52
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 | 13.25 |
F-Score8
WACC9.07%
ROIC/WACC2.53
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 Y31.11%
EPS Next 2Y26.05%
EPS Next 3Y24.33%
EPS Next 5Y19.27%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year14.35%
Revenue Next 2Y13.23%
Revenue Next 3Y12.46%
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