NETFLIX INC (NFC.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NFC - US64110L1061 - Common Stock
73.08 EUR
+1.59 (+2.22%)
Overall NFC gets a fundamental rating of 7 out of 10. We evaluated NFC against 46 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes NFC very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year NFC was profitable.
- In the past year NFC had a positive cash flow from operations.
- 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 (19.75%) than 97.92% of its industry peers.
- Looking at the Return On Equity, with a value of 41.26%, NFC belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 25.95%, NFC belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
- NFC had an Average Return On Invested Capital over the past 3 years of 20.73%. This is significantly above the industry average of 9.28%.
- The 3 year average ROIC (20.73%) for NFC is below the current ROIC(25.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.75% | ||
| ROE | 41.26% | ||
| ROIC | 25.95% |
ROA(3y)15.7%
ROA(5y)13.56%
ROE(3y)34.24%
ROE(5y)31.33%
ROIC(3y)20.73%
ROIC(5y)17.83%
1.3 Margins
- NFC has a Profit Margin of 24.30%. This is amongst the best in the industry. NFC outperforms 97.92% of its industry peers.
- In the last couple of years the Profit Margin of NFC has grown nicely.
- The Operating Margin of NFC (29.49%) is better than 97.92% of its industry peers.
- NFC's Operating Margin has improved in the last couple of years.
- NFC's Gross Margin of 48.49% is in line compared to the rest of the industry. NFC outperforms 47.92% of its industry peers.
- NFC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.49% | ||
| PM (TTM) | 24.3% | ||
| GM | 48.49% |
OM growth 3Y18.3%
OM growth 5Y5.33%
PM growth 3Y19.6%
PM growth 5Y17.08%
GM growth 3Y7.19%
GM growth 5Y2.29%
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.
- The number of shares outstanding for NFC has been increased compared to 1 year ago.
- NFC has more shares outstanding than it did 5 years ago.
- NFC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 10.26 indicates that NFC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.26, NFC belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
- The Debt to FCF ratio of NFC is 1.53, which is an excellent value as it means it would take NFC, only 1.53 years of fcf income to pay off all of its debts.
- NFC has a Debt to FCF ratio of 1.53. This is in the better half of the industry: NFC outperforms 79.17% of its industry peers.
- NFC has a Debt/Equity ratio of 0.51. This is a neutral value indicating NFC is somewhat dependend on debt financing.
- The Debt to Equity ratio of NFC (0.51) is better than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 10.26 |
ROIC/WACC2.47
WACC10.52%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that NFC should not have too much problems paying its short term obligations.
- NFC has a better Current ratio (1.19) than 75.00% of its industry peers.
- NFC has a Quick Ratio of 1.19. This is a normal value and indicates that NFC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.19, NFC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- NFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.43%, 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 32.92% on average per year.
- The Revenue has grown by 15.85% in the past year. This is quite good.
- NFC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
EPS 1Y (TTM)27.43%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%31.15%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
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 20.08% on average per year.
- NFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.32% yearly.
EPS Next Y30.7%
EPS Next 2Y25.56%
EPS Next 3Y22.44%
EPS Next 5Y20.08%
Revenue Next Year13.71%
Revenue Next 2Y12.52%
Revenue Next 3Y11.69%
Revenue Next 5Y10.32%
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
- NFC is valuated quite expensively with a Price/Earnings ratio of 33.99.
- Based on the Price/Earnings ratio, NFC is valued a bit cheaper than 75.00% of the companies in the same industry.
- NFC is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 25.98, which means the current valuation is very expensive for NFC.
- Based on the Price/Forward Earnings ratio, NFC is valued a bit cheaper than 62.50% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NFC to the average of the S&P500 Index (25.98), we can say NFC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.99 | ||
| Fwd PE | 25.98 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as NFC.
- NFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.54 | ||
| EV/EBITDA | 12.3 |
4.3 Compensation for Growth
- NFC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 22.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)1.03
EPS Next 2Y25.56%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
- No dividends for NFC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
What is the valuation status of NETFLIX INC (NFC.DE) stock?
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.
Can you provide the financial health for NFC stock?
The financial health rating of NETFLIX INC (NFC.DE) is 7 / 10.