NETFLIX INC (NFC.DE) Stock Fundamental Analysis
Europe - FRA:NFC - US64110L1061 - Common Stock
976.4 EUR
+29 (+3.06%)
NFC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 43 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! 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.
Each year in the past 5 years NFC has been profitable.
In the past 5 years NFC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.99%, NFC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 40.19%, NFC belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.41%, NFC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NFC is significantly above the industry average of 10.60%.
The last Return On Invested Capital (24.41%) for NFC is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROIC | 24.41% |
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
Looking at the Profit Margin, with a value of 24.05%, NFC belongs to the top 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.
NFC has a Operating Margin of 29.14%. This is amongst the best in the industry. NFC outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of NFC has grown nicely.
NFC's Gross Margin of 48.09% is on the low side compared to the rest of the industry. NFC is outperformed by 60.47% of its industry peers.
In the last couple of years the Gross Margin of NFC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% |
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
NFC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NFC has an improved debt to assets ratio.
2.2 Solvency
NFC has an Altman-Z score of 12.56. This indicates that NFC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.56, NFC belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
The Debt to FCF ratio of NFC is 1.61, which is an excellent value as it means it would take NFC, only 1.61 years of fcf income to pay off all of its debts.
NFC has a better Debt to FCF ratio (1.61) than 79.07% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NFC is somewhat dependend on debt financing.
NFC's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. NFC outperforms 55.81% 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 12.56 |
ROIC/WACC2.85
WACC8.58%
2.3 Liquidity
NFC has a Current Ratio of 1.33. 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 (1.33) is better than 79.07% of its industry peers.
NFC has a Quick Ratio of 1.33. This is a normal value and indicates that NFC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NFC (1.33) is better than 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.48% over the past year.
NFC 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, NFC shows a quite strong growth in Revenue. The Revenue has grown by 15.41% in the last year.
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)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
The Earnings Per Share is expected to grow by 22.09% 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 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 47.12 indicates a quite expensive valuation of NFC.
Compared to the rest of the industry, the Price/Earnings ratio of NFC indicates a somewhat cheap valuation: NFC is cheaper than 69.77% of the companies listed in the same industry.
NFC is valuated expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.17, the valuation of NFC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NFC is on the same level as its industry peers.
NFC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.12 | ||
| Fwd PE | 34.17 |
4.2 Price Multiples
NFC's Enterprise Value to EBITDA ratio is in line with the industry average.
NFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.46 | ||
| EV/EBITDA | 16.83 |
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.
NFC's earnings are expected to grow with 26.30% in the coming years. This may justify a more expensive valuation.
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)10.43B
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)0
Avg EPS beat(2)-8.9%
Min EPS beat(2)-17.39%
Max EPS beat(2)-0.4%
EPS beat(4)1
Avg EPS beat(4)-1.14%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.49%
EPS beat(8)4
Avg EPS beat(8)0.94%
EPS beat(12)6
Avg EPS beat(12)-4.16%
EPS beat(16)10
Avg EPS beat(16)4.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.36%
Revenue beat(12)0
Avg Revenue beat(12)-1.67%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)1.91%
PT rev (3m)7.01%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.12 | ||
| Fwd PE | 34.17 | ||
| P/S | 11.05 | ||
| P/FCF | 53.46 | ||
| P/OCF | 50.07 | ||
| P/B | 18.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.83 |
EPS(TTM)20.72
EY2.12%
EPS(NY)28.57
Fwd EY2.93%
FCF(TTM)18.26
FCFY1.87%
OCF(TTM)19.5
OCFY2%
SpS88.35
BVpS52.86
TBVpS-13.62
PEG (NY)1.33
PEG (5Y)1.28
Graham Number156.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROCE | 27.97% | ||
| ROIC | 24.41% | ||
| ROICexc | 30.76% | ||
| ROICexgc | 340.72% | ||
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% | ||
| FCFM | 20.67% |
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-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 3.76% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.26% | ||
| Profit Quality | 85.96% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 12.56 |
F-Score8
WACC8.58%
ROIC/WACC2.85
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 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
EBIT Next 5Y21.46%
FCF growth 1Y57.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.12%
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.