NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - US64110L1061 - Common Stock
1050 EUR
+8.6 (+0.83%)
We assign a fundamental rating of 7 out of 10 to 1NFLX. 1NFLX was compared to 45 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 not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
1NFLX had a positive operating cash flow in the past year.
1NFLX had positive earnings in each of the past 5 years.
1NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NFLX has a better Return On Assets (19.30%) than 97.78% of its industry peers.
1NFLX has a better Return On Equity (41.07%) than 93.33% of its industry peers.
The Return On Invested Capital of 1NFLX (24.32%) is better than 95.56% 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 10.89%.
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
1NFLX has a Profit Margin of 24.58%. This is amongst the best in the industry. 1NFLX outperforms 95.56% 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 95.56% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
With a Gross Margin value of 48.49%, 1NFLX is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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
1NFLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1NFLX has been reduced compared to 1 year ago.
Compared to 5 years ago, 1NFLX has less shares outstanding
Compared to 1 year ago, 1NFLX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.69 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NFLX (13.69) is better 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.
1NFLX has a Debt to FCF ratio of 1.70. This is in the better half of the industry: 1NFLX outperforms 71.11% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that 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 44.44% 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 | 0.58 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 13.69 |
ROIC/WACC2.78
WACC8.76%
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 better Current ratio (1.34) than 68.89% of its industry peers.
A Quick Ratio of 1.34 indicates that 1NFLX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.34, 1NFLX is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
| 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.
1NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.86% yearly.
Looking at the last year, 1NFLX shows a quite strong growth in Revenue. The Revenue has grown by 14.84% in the last year.
The Revenue has been growing by 14.11% on average over the past years. This is quite good.
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
Based on estimates for the next years, 1NFLX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.86% on average per year.
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 Year15.86%
Revenue Next 2Y14.37%
Revenue Next 3Y13.24%
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.
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
A Price/Earnings ratio of 52.14 indicates a quite expensive valuation of 1NFLX.
62.22% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1NFLX to the average of the S&P500 Index (27.08), we can say 1NFLX is valued expensively.
With a Price/Forward Earnings ratio of 37.19, 1NFLX can be considered very expensive at the moment.
62.22% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.67. 1NFLX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.14 | ||
| Fwd PE | 37.19 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1NFLX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.18 | ||
| EV/EBITDA | 18.69 |
4.3 Compensation for Growth
The 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 26.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.5
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 (8/26/2025, 7:00:00 PM)
1050
+8.6 (+0.83%)
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 Cap446.18B
Analysts80
Price Target1158.56 (10.34%)
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)5.06%
PT rev (3m)14.82%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)2.46%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.14 | ||
| Fwd PE | 37.19 | ||
| P/S | 12.47 | ||
| P/FCF | 61.18 | ||
| P/OCF | 57.34 | ||
| P/B | 20.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.69 |
EPS(TTM)20.14
EY1.92%
EPS(NY)28.24
Fwd EY2.69%
FCF(TTM)17.16
FCFY1.63%
OCF(TTM)18.31
OCFY1.74%
SpS84.18
BVpS50.38
TBVpS-14.41
PEG (NY)1.5
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 | 13.69 |
F-Score7
WACC8.76%
ROIC/WACC2.78
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 Year15.86%
Revenue Next 2Y14.37%
Revenue Next 3Y13.24%
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