NETFLIX INC (NFC.DE) Stock Fundamental Analysis
FRA:NFC - Deutsche Boerse Ag - US64110L1061 - Common Stock - Currency: EUR
Overall NFC gets a fundamental rating of 7 out of 10. We evaluated NFC against 47 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 valued quite expensively, but it does show have an excellent growth rating. 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.
NFC had positive earnings in each of the past 5 years.
Each year in the past 5 years NFC had a positive operating cash flow.
1.2 Ratios
NFC's Return On Assets of 17.80% is amongst the best of the industry. NFC outperforms 100.00% of its industry peers.
The Return On Equity of NFC (38.58%) is better than 91.49% of its industry peers.
NFC has a better Return On Invested Capital (22.93%) than 97.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NFC is significantly above the industry average of 9.18%.
The 3 year average ROIC (16.17%) for NFC is below the current ROIC(22.93%), indicating increased profibility in the last year.
| 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
NFC has a Profit Margin of 23.07%. This is amongst the best in the industry. NFC outperforms 97.87% of its industry peers.
NFC's Profit Margin has improved in the last couple of years.
NFC has a Operating Margin of 27.71%. This is amongst the best in the industry. NFC outperforms 97.87% of its industry peers.
In the last couple of years the Operating Margin of NFC has grown nicely.
NFC's Gross Margin of 46.92% is in line compared to the rest of the industry. NFC outperforms 44.68% of its industry peers.
NFC's Gross Margin has improved in the last couple of years.
| 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
Compared to 1 year ago, NFC has an improved debt to assets ratio.
2.2 Solvency
NFC has an Altman-Z score of 13.30. This indicates that NFC is financially healthy and has little risk of bankruptcy at the moment.
NFC has a Altman-Z score of 13.30. This is amongst the best in the industry. NFC outperforms 95.74% of its industry peers.
NFC has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as NFC would need 2.02 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.02, NFC is doing good in the industry, outperforming 76.60% of the companies in the same industry.
NFC has a Debt/Equity ratio of 0.58. This is a neutral value indicating NFC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, NFC perfoms like the industry average, outperforming 46.81% 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 | 13.3 |
ROIC/WACC2.58
WACC8.9%
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.
With a decent Current ratio value of 1.20, NFC is doing good in the industry, outperforming 74.47% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that NFC should not have too much problems paying its short term obligations.
NFC has a better Quick ratio (1.20) than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
NFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.84%, which is quite impressive.
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%.
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)46.84%
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
The Earnings Per Share is expected to grow by 19.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y31.11%
EPS Next 2Y26.05%
EPS Next 3Y24.33%
EPS Next 5Y19.27%
Revenue Next Year14.35%
Revenue Next 2Y13.23%
Revenue Next 3Y12.46%
Revenue Next 5Y11.16%
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
With a Price/Earnings ratio of 56.39, NFC can be considered very expensive at the moment.
NFC's Price/Earnings ratio is a bit cheaper when compared to the industry. NFC is cheaper than 65.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, NFC is valued quite expensively.
The Price/Forward Earnings ratio is 37.87, which means the current valuation is very expensive for NFC.
NFC's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.15. NFC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.39 | ||
| Fwd PE | 37.87 |
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 | 68.19 | ||
| EV/EBITDA | 19.08 |
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 24.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)1.53
EPS Next 2Y26.05%
EPS Next 3Y24.33%
5. Dividend
5.1 Amount
No dividends for NFC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (6/2/2025, 10:49:21 AM)
1052.2
-0.2 (-0.02%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.17%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap447.78B
Analysts81.05
Price Target1011.05 (-3.91%)
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)0.43%
PT rev (3m)-1.99%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)11.91%
EPS NY rev (1m)2.44%
EPS NY rev (3m)2.94%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.39 | ||
| Fwd PE | 37.87 | ||
| P/S | 12.64 | ||
| P/FCF | 68.19 | ||
| P/OCF | 63.96 | ||
| P/B | 21.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.08 |
EPS(TTM)18.66
EY1.77%
EPS(NY)27.78
Fwd EY2.64%
FCF(TTM)15.43
FCFY1.47%
OCF(TTM)16.45
OCFY1.56%
SpS83.25
BVpS49.79
TBVpS-16.6
PEG (NY)1.81
PEG (5Y)1.53
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 | 13.3 |
F-Score8
WACC8.9%
ROIC/WACC2.58
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 Y31.11%
EPS Next 2Y26.05%
EPS Next 3Y24.33%
EPS Next 5Y19.27%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year14.35%
Revenue Next 2Y13.23%
Revenue Next 3Y12.46%
Revenue Next 5Y11.16%
EBIT growth 1Y41.41%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year33.47%
EBIT Next 3Y22.92%
EBIT Next 5Y18.17%
FCF growth 1Y153.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y141.85%
OCF growth 3Y165.66%
OCF growth 5YN/A