NETFLIX INC (NFLX)
US64110L1061 - Common Stock
Overall NFLX gets a fundamental rating of 7 out of 10. We evaluated NFLX against 77 industry peers in the Entertainment industry. NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. NFLX is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make NFLX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NFLX was profitable.
NFLX had a positive operating cash flow in the past year.
In the past 5 years NFLX has always been profitable.
NFLX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NFLX has a Return On Assets of 11.10%. This is amongst the best in the industry. NFLX outperforms 93.51% of its industry peers.
NFLX's Return On Equity of 26.27% is amongst the best of the industry. NFLX outperforms 93.51% of its industry peers.
NFLX's Return On Invested Capital of 14.43% is amongst the best of the industry. NFLX outperforms 93.51% of its industry peers.
NFLX had an Average Return On Invested Capital over the past 3 years of 13.36%. This is significantly below the industry average of 37.63%.
The last Return On Invested Capital (14.43%) for NFLX is above the 3 year average (13.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 26.27% | ||
| ROIC | 14.43% |
ROA(3y)10.61%
ROA(5y)8.87%
ROE(3y)26.72%
ROE(5y)25.95%
ROIC(3y)13.36%
ROIC(5y)12.6%
1.3 Margins
Looking at the Profit Margin, with a value of 16.04%, NFLX belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
NFLX's Profit Margin has improved in the last couple of years.
NFLX has a better Operating Margin (20.62%) than 92.21% of its industry peers.
NFLX's Operating Margin has improved in the last couple of years.
NFLX has a Gross Margin (41.54%) which is in line with its industry peers.
NFLX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.62% | ||
| PM (TTM) | 16.04% | ||
| GM | 41.54% |
OM growth 3Y-3.22%
OM growth 5Y15.2%
PM growth 3Y13.23%
PM growth 5Y15.9%
GM growth 3Y-1.37%
GM growth 5Y2.4%
2. Health
2.1 Basic Checks
NFLX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NFLX has less shares outstanding
NFLX has less shares outstanding than it did 5 years ago.
NFLX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.50 indicates that NFLX is not in any danger for bankruptcy at the moment.
NFLX has a better Altman-Z score (7.50) than 96.10% of its industry peers.
NFLX has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as NFLX would need 2.10 years to pay back of all of its debts.
NFLX's Debt to FCF ratio of 2.10 is amongst the best of the industry. NFLX outperforms 88.31% of its industry peers.
NFLX has a Debt/Equity ratio of 0.69. This is a neutral value indicating NFLX is somewhat dependend on debt financing.
NFLX's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. NFLX outperforms 44.16% of its industry peers.
Even though the debt/equity ratio score it not favorable for NFLX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 7.5 |
ROIC/WACC1.6
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.12 indicates that NFLX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, NFLX is in line with its industry, outperforming 55.84% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX's Quick ratio of 1.12 is in line compared to the rest of the industry. NFLX outperforms 55.84% of its industry peers.
NFLX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.70% over the past year.
The Earnings Per Share has been growing by 34.98% on average over the past years. This is a very strong growth
NFLX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.67%.
NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.38% yearly.
EPS 1Y (TTM)20.7%
EPS 3Y25.4%
EPS 5Y34.98%
EPS growth Q2Q1658.33%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y10.5%
Revenue growth 5Y16.38%
Revenue growth Q2Q12.49%
3.2 Future
Based on estimates for the next years, NFLX will show a very strong growth in Earnings Per Share. The EPS will grow by 22.73% on average per year.
NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.31% yearly.
EPS Next Y45.88%
EPS Next 2Y34.25%
EPS Next 3Y29.08%
EPS Next 5Y22.73%
Revenue Next Year14.88%
Revenue Next 2Y13.56%
Revenue Next 3Y12.22%
Revenue Next 5Y10.31%
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
With a Price/Earnings ratio of 51.39, NFLX can be considered very expensive at the moment.
71.43% of the companies in the same industry are more expensive than NFLX, based on the Price/Earnings ratio.
NFLX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.83.
Based on the Price/Forward Earnings ratio of 35.23, the valuation of NFLX can be described as expensive.
NFLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 72.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NFLX to the average of the S&P500 Index (21.32), we can say NFLX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.39 | ||
| Fwd PE | 35.23 |
4.2 Price Multiples
NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 76.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 74.03% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.57 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
NFLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NFLX has an outstanding profitability rating, which may justify a higher PE ratio.
NFLX's earnings are expected to grow with 29.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)1.47
EPS Next 2Y34.25%
EPS Next 3Y29.08%
5. Dividend
5.1 Amount
No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NETFLIX INC
NASDAQ:NFLX (4/18/2024, 10:12:04 AM)
617.2
+3.51 (+0.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap267.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.39 | ||
| Fwd PE | 35.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.12
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.1% | ||
| ROE | 26.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.62% | ||
| PM (TTM) | 16.04% | ||
| GM | 41.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.7%
EPS 3Y25.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y45.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.67%
Revenue growth 3Y10.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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