NETFLIX INC (NFC.DE) Stock Fundamental Analysis
FRA:NFC - Deutsche Boerse Ag - US64110L1061 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to NFC. NFC was compared to 43 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making NFC a very profitable company, without any liquidiy or solvency issues. NFC is valued quite expensive, but it does show an excellent growth. These ratings would make NFC suitable 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.
NFC had positive earnings in each of the past 5 years.
In the past 5 years NFC always reported a positive cash flow from operatings.
1.2 Ratios
NFC has a better Return On Assets (17.80%) than 97.67% of its industry peers.
NFC has a Return On Equity of 38.58%. This is amongst the best in the industry. NFC outperforms 88.37% of its industry peers.
With an excellent Return On Invested Capital value of 22.93%, NFC belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NFC is significantly above the industry average of 9.53%.
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's Profit Margin of 23.07% is amongst the best of the industry. NFC outperforms 95.35% of its industry peers.
In the last couple of years the Profit Margin of NFC has grown nicely.
With an excellent Operating Margin value of 27.71%, NFC belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
In the last couple of years the Operating Margin of NFC has grown nicely.
NFC has a Gross Margin (46.92%) which is in line with 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
The debt/assets ratio for NFC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.93 indicates that NFC is not in any danger for bankruptcy at the moment.
NFC has a Altman-Z score of 12.93. This is amongst the best in the industry. NFC outperforms 100.00% of its industry peers.
The Debt to FCF ratio of NFC is 2.02, which is a good value as it means it would take NFC, 2.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NFC (2.02) is better than 67.44% 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 44.19% of 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 | 2.02 | ||
| Altman-Z | 12.93 |
ROIC/WACC2.6
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.20 indicates that NFC should not have too much problems paying its short term obligations.
NFC has a better Current ratio (1.20) than 67.44% of its industry peers.
NFC has a Quick 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.
NFC's Quick ratio of 1.20 is fine compared to the rest of the industry. NFC outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.84% 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.
NFC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.00%.
The Revenue has been growing by 14.11% on average over the past years. This is quite good.
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
NFC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.27% yearly.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y27.98%
EPS Next 2Y24.78%
EPS Next 3Y23.08%
EPS Next 5Y19.27%
Revenue Next Year14.38%
Revenue Next 2Y13.18%
Revenue Next 3Y12.42%
Revenue Next 5Y11.16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.47, the valuation of NFC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NFC indicates a somewhat cheap valuation: NFC is cheaper than 62.79% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. NFC is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 37.32, the valuation of NFC can be described as expensive.
NFC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.86. NFC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.47 | ||
| Fwd PE | 37.32 |
4.2 Price Multiples
NFC's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NFC is valued a bit more expensive than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.85 | ||
| EV/EBITDA | 18.43 |
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.
A more expensive valuation may be justified as NFC's earnings are expected to grow with 23.08% in the coming years.
PEG (NY)1.95
PEG (5Y)1.48
EPS Next 2Y24.78%
EPS Next 3Y23.08%
5. Dividend
5.1 Amount
NFC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (5/2/2025, 7:00:00 PM)
1015.8
+28.6 (+2.9%)
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 Cap432.29B
Analysts81.05
Price Target1006.7 (-0.9%)
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)-0.19%
PT rev (3m)-2.41%
EPS NQ rev (1m)11.88%
EPS NQ rev (3m)12.26%
EPS NY rev (1m)0.49%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.36%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.47 | ||
| Fwd PE | 37.32 | ||
| P/S | 12.21 | ||
| P/FCF | 65.85 | ||
| P/OCF | 61.77 | ||
| P/B | 20.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.43 |
EPS(TTM)18.65
EY1.84%
EPS(NY)27.22
Fwd EY2.68%
FCF(TTM)15.42
FCFY1.52%
OCF(TTM)16.44
OCFY1.62%
SpS83.22
BVpS49.78
TBVpS-16.6
PEG (NY)1.95
PEG (5Y)1.48
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 | 12.93 |
F-Score8
WACC8.82%
ROIC/WACC2.6
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 Y27.98%
EPS Next 2Y24.78%
EPS Next 3Y23.08%
EPS Next 5Y19.27%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year14.38%
Revenue Next 2Y13.18%
Revenue Next 3Y12.42%
Revenue Next 5Y11.16%
EBIT growth 1Y41.41%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year30.43%
EBIT Next 3Y21.76%
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