NETFLIX INC (NFC.DE) Stock Fundamental Analysis
FRA:NFC - Deutsche Boerse Ag - US64110L1061 - Common Stock - Currency: EUR
Taking everything into account, NFC scores 7 out of 10 in our fundamental rating. NFC was compared to 45 industry peers in the Entertainment industry. NFC gets an excellent profitability rating and is at the same time showing great financial health properties. NFC is growing strongly while it is still valued neutral. This is a good combination! With these ratings, NFC could be worth investigating further 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
NFC has a better Return On Assets (19.30%) than 100.00% of its industry peers.
The Return On Equity of NFC (41.07%) is better than 93.62% of its industry peers.
NFC has a Return On Invested Capital of 24.32%. This is amongst the best in the industry. NFC outperforms 97.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NFC is significantly above the industry average of 10.04%.
The 3 year average ROIC (16.17%) for NFC 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
With an excellent Profit Margin value of 24.58%, NFC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
NFC's Profit Margin has improved in the last couple of years.
The Operating Margin of NFC (29.51%) is better than 100.00% of its industry peers.
NFC's Operating Margin has improved in the last couple of years.
NFC has a Gross Margin (48.49%) which is comparable to the rest of the industry.
NFC'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
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
NFC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.02 indicates that NFC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.02, NFC belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
The Debt to FCF ratio of NFC is 1.70, which is an excellent value as it means it would take NFC, only 1.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NFC (1.70) is better than 72.34% of its industry peers.
NFC has a Debt/Equity ratio of 0.58. This is a neutral value indicating NFC is somewhat dependend on debt financing.
NFC has a Debt to Equity ratio (0.58) which is in line with its industry peers.
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 | 1.7 | ||
| Altman-Z | 13.02 |
ROIC/WACC2.8
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.34 indicates that NFC should not have too much problems paying its short term obligations.
The Current ratio of NFC (1.34) is better than 72.34% of its industry peers.
A Quick Ratio of 1.34 indicates that NFC should not have too much problems paying its short term obligations.
NFC has a Quick ratio of 1.34. This is in the better half of the industry: NFC outperforms 74.47% of its industry peers.
| 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.
Measured over the past years, NFC shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.86% on average per year.
NFC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.84%.
Measured over the past years, NFC shows a quite strong growth in Revenue. The Revenue has been growing by 14.11% on average per year.
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 20.15% on average over the next years. This is a very strong growth
Based on estimates for the next years, NFC will show a quite strong growth in Revenue. The Revenue will grow by 11.09% on average per year.
EPS Next Y31.57%
EPS Next 2Y26.62%
EPS Next 3Y24.69%
EPS Next 5Y20.15%
Revenue Next Year15.87%
Revenue Next 2Y14.37%
Revenue Next 3Y13.25%
Revenue Next 5Y11.09%
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 49.02, the valuation of NFC can be described as expensive.
65.96% of the companies in the same industry are more expensive than NFC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.82, NFC is valued quite expensively.
The Price/Forward Earnings ratio is 36.18, which means the current valuation is very expensive for NFC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NFC indicates a somewhat cheap valuation: NFC is cheaper than 61.70% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NFC to the average of the S&P500 Index (36.21), we can say NFC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.02 | ||
| Fwd PE | 36.18 |
4.2 Price Multiples
NFC's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 57.51 | ||
| EV/EBITDA | 17.58 |
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 NFC may justify a higher PE ratio.
A more expensive valuation may be justified as NFC's earnings are expected to grow with 24.69% in the coming years.
PEG (NY)1.55
PEG (5Y)1.33
EPS Next 2Y26.62%
EPS Next 3Y24.69%
5. Dividend
5.1 Amount
No dividends for NFC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (8/1/2025, 7:00:00 PM)
1008.8
-17.2 (-1.68%)
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 Cap428.67B
Analysts80.71
Price Target1103.78 (9.42%)
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)4.18%
PT rev (3m)9.64%
EPS NQ rev (1m)4.41%
EPS NQ rev (3m)-0.52%
EPS NY rev (1m)0.33%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.02 | ||
| Fwd PE | 36.18 | ||
| P/S | 11.73 | ||
| P/FCF | 57.51 | ||
| P/OCF | 53.9 | ||
| P/B | 19.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.58 |
EPS(TTM)20.58
EY2.04%
EPS(NY)27.88
Fwd EY2.76%
FCF(TTM)17.54
FCFY1.74%
OCF(TTM)18.72
OCFY1.86%
SpS86.04
BVpS51.49
TBVpS-14.73
PEG (NY)1.55
PEG (5Y)1.33
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 | 13.02 |
F-Score7
WACC8.7%
ROIC/WACC2.8
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 Y31.57%
EPS Next 2Y26.62%
EPS Next 3Y24.69%
EPS Next 5Y20.15%
Revenue 1Y (TTM)14.84%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%15.9%
Revenue Next Year15.87%
Revenue Next 2Y14.37%
Revenue Next 3Y13.25%
Revenue Next 5Y11.09%
EBIT growth 1Y42.28%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year33.47%
EBIT Next 3Y22.92%
EBIT Next 5Y19.31%
FCF growth 1Y99.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y96.35%
OCF growth 3Y165.66%
OCF growth 5YN/A