NETFLIX INC (NFC.DE) Stock Fundamental Analysis
FRA:NFC - US64110L1061 - Common Stock
1035.2 EUR
-33.6 (-3.14%)
NFC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 44 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 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
NFC has a better Return On Assets (19.30%) than 97.73% of its industry peers.
NFC's Return On Equity of 41.07% is amongst the best of the industry. NFC outperforms 93.18% of its industry peers.
With an excellent Return On Invested Capital value of 24.32%, NFC belongs to the best of the industry, outperforming 95.45% 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 10.73%.
The 3 year average ROIC (16.17%) for NFC is below the current ROIC(24.32%), indicating increased profibility in the last year.
| 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 95.45% of its industry peers.
NFC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.51%, NFC belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of NFC has grown nicely.
NFC has a worse Gross Margin (48.49%) than 61.36% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NFC is creating value.
NFC has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 13.94 indicates that NFC is not in any danger for bankruptcy at the moment.
NFC's Altman-Z score of 13.94 is amongst the best of the industry. NFC outperforms 97.73% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.70, NFC is doing good in the industry, outperforming 72.73% 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.
NFC's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. NFC outperforms 47.73% 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 | 13.94 |
ROIC/WACC2.85
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.34 indicates that NFC should not have too much problems paying its short term obligations.
NFC's Current ratio of 1.34 is fine compared to the rest of the industry. NFC outperforms 70.45% of its industry peers.
NFC has a Quick 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.
NFC has a Quick ratio of 1.34. This is in the better half of the industry: NFC outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.69% over the past year.
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.
Looking at the last year, NFC shows a quite strong growth in Revenue. The Revenue has grown by 14.84% 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)46.69%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%47.34%
Revenue 1Y (TTM)14.84%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%15.9%
3.2 Future
NFC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.86% yearly.
Based on estimates for the next years, NFC will show a quite strong growth in Revenue. The Revenue will grow by 12.01% on average per year.
EPS Next Y34.81%
EPS Next 2Y28.83%
EPS Next 3Y26.05%
EPS Next 5Y21.86%
Revenue Next Year15.86%
Revenue Next 2Y14.37%
Revenue Next 3Y13.24%
Revenue Next 5Y12.01%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.63, the valuation of NFC can be described as expensive.
Based on the Price/Earnings ratio, NFC is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
NFC is valuated expensively when we compare the Price/Earnings ratio to 27.44, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 36.82, the valuation of NFC can be described as expensive.
63.64% of the companies in the same industry are more expensive than NFC, based on the Price/Forward Earnings ratio.
NFC is valuated expensively when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.63 | ||
| Fwd PE | 36.82 |
4.2 Price Multiples
NFC's Enterprise Value to EBITDA is on the same level as the industry average.
NFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.58 | ||
| EV/EBITDA | 19.1 |
4.3 Compensation for Growth
The 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 26.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)1.4
EPS Next 2Y28.83%
EPS Next 3Y26.05%
5. Dividend
5.1 Amount
NFC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (9/11/2025, 7:00:00 PM)
1035.2
-33.6 (-3.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.86%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap439.89B
Analysts80.36
Price Target1163.07 (12.35%)
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)5.37%
PT rev (3m)15.04%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)2.46%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.63 | ||
| Fwd PE | 36.82 | ||
| P/S | 12.35 | ||
| P/FCF | 60.58 | ||
| P/OCF | 56.78 | ||
| P/B | 20.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.1 |
EPS(TTM)20.05
EY1.94%
EPS(NY)28.11
Fwd EY2.72%
FCF(TTM)17.09
FCFY1.65%
OCF(TTM)18.23
OCFY1.76%
SpS83.81
BVpS50.16
TBVpS-14.35
PEG (NY)1.48
PEG (5Y)1.4
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%
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-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 | 13.94 |
F-Score7
WACC8.52%
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)46.69%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%47.34%
EPS Next Y34.81%
EPS Next 2Y28.83%
EPS Next 3Y26.05%
EPS Next 5Y21.86%
Revenue 1Y (TTM)14.84%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%15.9%
Revenue Next Year15.86%
Revenue Next 2Y14.37%
Revenue Next 3Y13.24%
Revenue Next 5Y12.01%
EBIT growth 1Y42.28%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year38.09%
EBIT Next 3Y25.42%
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