NETFLIX INC (NFC.DE) Stock Fundamental Analysis
FRA:NFC - Deutsche Boerse Ag - US64110L1061 - Common Stock - Currency: EUR
NFC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 44 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making NFC a very profitable company, without any liquidiy or solvency issues. NFC is valued quite expensively, but it does show have an excellent growth rating. These ratings would make NFC suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NFC was profitable.
NFC had a positive operating cash flow in the past year.
In the past 5 years NFC has always been profitable.
In the past 5 years NFC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NFC (17.80%) is better than 100.00% of its industry peers.
NFC has a better Return On Equity (38.58%) than 93.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.93%, NFC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NFC is significantly above the industry average of 8.11%.
The last Return On Invested Capital (22.93%) for NFC is above the 3 year average (16.17%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 23.07%, NFC belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
In the last couple of years the Profit Margin of NFC has grown nicely.
NFC has a better Operating Margin (27.71%) than 97.73% of its industry peers.
NFC's Operating Margin has improved in the last couple of years.
NFC has a Gross Margin of 46.92%. This is comparable to the rest of the industry: NFC outperforms 40.91% of its industry peers.
In the last couple of years the Gross Margin of NFC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NFC is creating value.
Compared to 1 year ago, NFC has less shares outstanding
Compared to 5 years ago, NFC has less shares outstanding
The debt/assets ratio for NFC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 13.61 indicates that NFC is not in any danger for bankruptcy at the moment.
The Altman-Z score of NFC (13.61) is better than 97.73% of its industry peers.
The Debt to FCF ratio of NFC is 2.02, which is a good value as it means it would take NFC, 2.02 years of fcf income to pay off all of its debts.
NFC has a Debt to FCF ratio of 2.02. This is in the better half of the industry: NFC outperforms 72.73% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that NFC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, NFC is in line with its industry, outperforming 47.73% of the companies in the same industry.
Although NFC 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 | 13.61 |
ROIC/WACC2.59
WACC8.86%
2.3 Liquidity
NFC has a Current Ratio of 1.20. This is a normal value and indicates that NFC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NFC (1.20) is better than 72.73% of its industry peers.
A Quick Ratio of 1.20 indicates that NFC should not have too much problems paying its short term obligations.
NFC has a Quick ratio of 1.20. This is in the better half of the industry: NFC outperforms 72.73% 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.
The Earnings Per Share has been growing by 36.86% on average over the past years. This is a very strong growth
NFC 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
NFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.80% yearly.
The Revenue is expected to grow by 11.04% on average over the next years. This is quite good.
EPS Next Y31.14%
EPS Next 2Y26.15%
EPS Next 3Y24.35%
EPS Next 5Y19.8%
Revenue Next Year14.37%
Revenue Next 2Y13.28%
Revenue Next 3Y12.53%
Revenue Next 5Y11.04%
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 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 57.97, which means the current valuation is very expensive for NFC.
NFC's Price/Earnings ratio is a bit cheaper when compared to the industry. NFC is cheaper than 65.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. NFC is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 38.87 indicates a quite expensive valuation of NFC.
NFC's Price/Forward Earnings is on the same level as the industry average.
NFC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.97 | ||
| Fwd PE | 38.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NFC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NFC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.12 | ||
| EV/EBITDA | 19.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NFC has an outstanding profitability rating, which may justify a higher PE ratio.
NFC's earnings are expected to grow with 24.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)1.57
EPS Next 2Y26.15%
EPS Next 3Y24.35%
5. Dividend
5.1 Amount
No dividends for NFC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (6/20/2025, 5:28:51 PM)
1065.4
+13.4 (+1.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.57%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap453.40B
Analysts80.7
Price Target1059.45 (-0.56%)
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)4.79%
PT rev (3m)1.97%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)11.91%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.97 | ||
| Fwd PE | 38.87 | ||
| P/S | 13 | ||
| P/FCF | 70.12 | ||
| P/OCF | 65.77 | ||
| P/B | 21.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.61 |
EPS(TTM)18.38
EY1.73%
EPS(NY)27.41
Fwd EY2.57%
FCF(TTM)15.19
FCFY1.43%
OCF(TTM)16.2
OCFY1.52%
SpS81.98
BVpS49.03
TBVpS-16.35
PEG (NY)1.86
PEG (5Y)1.57
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 | 13.61 |
F-Score8
WACC8.86%
ROIC/WACC2.59
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 Y31.14%
EPS Next 2Y26.15%
EPS Next 3Y24.35%
EPS Next 5Y19.8%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year14.37%
Revenue Next 2Y13.28%
Revenue Next 3Y12.53%
Revenue Next 5Y11.04%
EBIT growth 1Y41.41%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year33.47%
EBIT Next 3Y22.92%
EBIT Next 5Y19.08%
FCF growth 1Y153.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y141.85%
OCF growth 3Y165.66%
OCF growth 5YN/A