NETFLIX INC (NFC.DE) Stock Fundamental Analysis
Europe - FRA:NFC - US64110L1061 - Common Stock
976.4 EUR
+29 (+3.06%)
Taking everything into account, NFC scores 7 out of 10 in our fundamental rating. NFC was compared to 43 industry peers in the Entertainment industry. NFC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NFC is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NFC a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
NFC had positive earnings in the past year.
NFC had a positive operating cash flow in the past year.
Each year in the past 5 years NFC has been profitable.
Each year in the past 5 years NFC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NFC (19.30%) is better than 97.67% of its industry peers.
NFC has a Return On Equity of 41.07%. This is amongst the best in the industry. NFC outperforms 90.70% of its industry peers.
NFC's Return On Invested Capital of 24.32% is amongst the best of the industry. NFC outperforms 97.67% of its industry peers.
NFC had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 10.28%.
The last Return On Invested Capital (24.32%) for NFC is above the 3 year average (16.17%), which is a sign of increasing profitability.
| 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
NFC's Profit Margin of 24.58% is amongst the best of the industry. NFC outperforms 97.67% of its industry peers.
In the last couple of years the Profit Margin of NFC has grown nicely.
NFC has a better Operating Margin (29.51%) than 97.67% of its industry peers.
NFC's Operating Margin has improved in the last couple of years.
NFC has a worse Gross Margin (48.49%) than 62.79% of its industry peers.
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
NFC 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, 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 12.51 indicates that NFC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.51, NFC belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
NFC has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
NFC has a better Debt to FCF ratio (1.70) than 76.74% 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 of 0.58. This is comparable to the rest of the industry: NFC outperforms 53.49% of its industry peers.
Even though the debt/equity ratio score it not favorable for NFC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 12.51 |
ROIC/WACC2.83
WACC8.58%
2.3 Liquidity
NFC has a Current Ratio of 1.34. 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 (1.34) is better than 76.74% of its industry peers.
A Quick Ratio of 1.34 indicates that NFC should not have too much problems paying its short term obligations.
The Quick ratio of NFC (1.34) is better than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
NFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
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.
The Revenue has grown by 15.41% in the past year. This is quite good.
The Revenue has been growing by 14.11% on average over the past years. This is quite good.
EPS 1Y (TTM)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
3.2 Future
Based on estimates for the next years, NFC will show a very strong growth in Earnings Per Share. The EPS will grow by 22.09% on average per year.
Based on estimates for the next years, NFC will show a quite strong growth in Revenue. The Revenue will grow by 12.02% on average per year.
EPS Next Y35.4%
EPS Next 2Y29.03%
EPS Next 3Y26.3%
EPS Next 5Y22.09%
Revenue Next Year15.78%
Revenue Next 2Y14.3%
Revenue Next 3Y13.2%
Revenue Next 5Y12.02%
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.
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 47.10 indicates a quite expensive valuation of NFC.
Based on the Price/Earnings ratio, NFC is valued a bit cheaper than 67.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of NFC to the average of the S&P500 Index (26.10), we can say NFC is valued expensively.
NFC is valuated quite expensively with a Price/Forward Earnings ratio of 34.16.
NFC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. NFC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.1 | ||
| Fwd PE | 34.16 |
4.2 Price Multiples
NFC's Enterprise Value to EBITDA ratio is in line with 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 | 56.37 | ||
| EV/EBITDA | 16.73 |
4.3 Compensation for Growth
NFC's 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 26.30% in the coming years.
PEG (NY)1.33
PEG (5Y)1.28
EPS Next 2Y29.03%
EPS Next 3Y26.3%
5. Dividend
5.1 Amount
NFC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (10/31/2025, 7:00:00 PM)
976.4
+29 (+3.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap414.90B
Revenue(TTM)43.38B
Net Income(TTM)10.25B
Analysts80.71
Price Target1181.15 (20.97%)
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)1.45%
PT rev (3m)6.53%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)4.39%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.1 | ||
| Fwd PE | 34.16 | ||
| P/S | 11.49 | ||
| P/FCF | 56.37 | ||
| P/OCF | 52.83 | ||
| P/B | 19.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.73 |
EPS(TTM)20.73
EY2.12%
EPS(NY)28.58
Fwd EY2.93%
FCF(TTM)17.32
FCFY1.77%
OCF(TTM)18.48
OCFY1.89%
SpS84.95
BVpS50.84
TBVpS-14.54
PEG (NY)1.33
PEG (5Y)1.28
Graham Number153.99
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 12.51 |
F-Score7
WACC8.58%
ROIC/WACC2.83
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)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
EPS Next Y35.4%
EPS Next 2Y29.03%
EPS Next 3Y26.3%
EPS Next 5Y22.09%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.78%
Revenue Next 2Y14.3%
Revenue Next 3Y13.2%
Revenue Next 5Y12.02%
EBIT growth 1Y42.28%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
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
NETFLIX INC / NFC.DE FAQ
What is the ChartMill fundamental rating of NETFLIX INC (NFC.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to NFC.DE.
Can you provide the valuation status for NETFLIX INC?
ChartMill assigns a valuation rating of 4 / 10 to NETFLIX INC (NFC.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for NETFLIX INC?
NETFLIX INC (NFC.DE) has a profitability rating of 9 / 10.
What is the earnings growth outlook for NETFLIX INC?
The Earnings per Share (EPS) of NETFLIX INC (NFC.DE) is expected to grow by 35.4% in the next year.