NETFLIX INC (NFLX) Stock Fundamental Analysis
NASDAQ:NFLX • US64110L1061
96.24 USD
+11.65 (+13.77%)
At close: Feb 27, 2026
95.02 USD
-1.22 (-1.27%)
Pre-Market: 3/2/2026, 9:12:07 AM
We assign a fundamental rating of 7 out of 10 to NFLX. NFLX was compared to 80 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 would make NFLX suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year NFLX was profitable.
- In the past year NFLX had a positive cash flow from operations.
- Each year in the past 5 years NFLX has been profitable.
- NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.75%, NFLX belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- NFLX has a better Return On Equity (41.26%) than 97.50% of its industry peers.
- The Return On Invested Capital of NFLX (25.95%) is better than 100.00% of its industry peers.
- NFLX had an Average Return On Invested Capital over the past 3 years of 20.73%. This is significantly above the industry average of 7.29%.
- The 3 year average ROIC (20.73%) for NFLX 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
- The Profit Margin of NFLX (24.30%) is better than 93.75% of its industry peers.
- In the last couple of years the Profit Margin of NFLX has grown nicely.
- The Operating Margin of NFLX (29.49%) is better than 97.50% of its industry peers.
- In the last couple of years the Operating Margin of NFLX has grown nicely.
- The Gross Margin of NFLX (48.49%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of NFLX has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NFLX is creating value.
- The number of shares outstanding for NFLX has been reduced compared to 1 year ago.
- NFLX has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.12 indicates that NFLX is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 11.12, NFLX belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
- NFLX has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
- The Debt to FCF ratio of NFLX (1.53) is better than 82.50% of its industry peers.
- NFLX has a Debt/Equity ratio of 0.51. This is a neutral value indicating NFLX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.51, NFLX is in line with its industry, outperforming 48.75% of the companies in the same industry.
- 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 | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 11.12 |
ROIC/WACC2.87
WACC9.04%
2.3 Liquidity
- NFLX has a Current Ratio of 1.19. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting its short term obligations.
- NFLX has a Current ratio (1.19) which is comparable to the rest of the industry.
- NFLX has a Quick Ratio of 1.19. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.19, NFLX perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
- The current and quick ratio evaluation for NFLX is rather negative, while it does have 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 | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 27.43% over the past year.
- The Earnings Per Share has been growing by 32.92% on average over the past years. This is a very strong growth
- The Revenue has grown by 15.85% in the past year. This is quite good.
- Measured over the past years, NFLX shows a quite strong growth in Revenue. The Revenue has been growing by 12.57% on average per year.
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, NFLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.67% on average per year.
- Based on estimates for the next years, NFLX will show a quite strong growth in Revenue. The Revenue will grow by 10.66% on average per year.
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y18.67%
Revenue Next Year13.45%
Revenue Next 2Y12.54%
Revenue Next 3Y11.66%
Revenue Next 5Y10.66%
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.
- 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
- The Price/Earnings ratio is 38.04, which means the current valuation is very expensive for NFLX.
- Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than 78.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.07, NFLX is valued a bit more expensive.
- The Price/Forward Earnings ratio is 30.06, which means the current valuation is very expensive for NFLX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 75.00% of the companies listed in the same industry.
- NFLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.05.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.04 | ||
| Fwd PE | 30.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than 75.00% of the companies in the same industry.
- NFLX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 66.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.95 | ||
| EV/EBITDA | 13.69 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of NFLX may justify a higher PE ratio.
- NFLX's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)1.16
EPS Next 2Y24.07%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
96.24
+11.65 (+13.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20 2026-01-20/amc
Earnings (Next)04-15 2026-04-15/amc
Inst Owners79.69%
Inst Owner Change752.19%
Ins Owners0.02%
Ins Owner Change12.24%
Market Cap406.34B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.23
Price Target115.45 (19.96%)
Short Float %1.81%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0
Avg EPS beat(2)-8.95%
Min EPS beat(2)-17.39%
Max EPS beat(2)-0.51%
EPS beat(4)1
Avg EPS beat(4)-1.21%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.44%
EPS beat(8)4
Avg EPS beat(8)1.71%
EPS beat(12)6
Avg EPS beat(12)1.94%
EPS beat(16)9
Avg EPS beat(16)1.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.29%
Revenue beat(8)0
Avg Revenue beat(8)-1.43%
Revenue beat(12)0
Avg Revenue beat(12)-1.62%
Revenue beat(16)0
Avg Revenue beat(16)-1.73%
PT rev (1m)-11.2%
PT rev (3m)-91.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.29%
EPS NY rev (1m)-3.07%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.04 | ||
| Fwd PE | 30.06 | ||
| P/S | 8.99 | ||
| P/FCF | 42.95 | ||
| P/OCF | 40.04 | ||
| P/B | 15.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)2.53
EY2.63%
EPS(NY)3.2
Fwd EY3.33%
FCF(TTM)2.24
FCFY2.33%
OCF(TTM)2.4
OCFY2.5%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.43
PEG (5Y)1.16
Graham Number18.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.75% | ||
| ROE | 41.26% | ||
| ROCE | 29.87% | ||
| ROIC | 25.95% | ||
| ROICexc | 32.56% | ||
| ROICexgc | 417.11% | ||
| OM | 29.49% | ||
| PM (TTM) | 24.3% | ||
| GM | 48.49% | ||
| FCFM | 20.94% |
ROA(3y)15.7%
ROA(5y)13.56%
ROE(3y)34.24%
ROE(5y)31.33%
ROIC(3y)20.73%
ROIC(5y)17.83%
ROICexc(3y)26.07%
ROICexc(5y)22.05%
ROICexgc(3y)685.89%
ROICexgc(5y)N/A
ROCE(3y)23.87%
ROCE(5y)20.52%
ROICexgc growth 3Y16.79%
ROICexgc growth 5YN/A
ROICexc growth 3Y32.05%
ROICexc growth 5Y8.93%
OM growth 3Y18.3%
OM growth 5Y5.33%
PM growth 3Y19.6%
PM growth 5Y17.08%
GM growth 3Y7.19%
GM growth 5Y2.29%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 4.11% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 11.12 |
F-Score7
WACC9.04%
ROIC/WACC2.87
Cap/Depr(3y)3.1%
Cap/Depr(5y)3.27%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.35%
Profit Quality(3y)97.89%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.43%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%31.15%
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y18.67%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.45%
Revenue Next 2Y12.54%
Revenue Next 3Y11.66%
Revenue Next 5Y10.66%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year28.28%
EBIT Next 3Y21.35%
EBIT Next 5Y18.54%
FCF growth 1Y36.68%
FCF growth 3Y80.14%
FCF growth 5Y37.44%
OCF growth 1Y37.87%
OCF growth 3Y71.1%
OCF growth 5Y33.13%
NETFLIX INC / NFLX FAQ
What is the ChartMill fundamental rating of NETFLIX INC (NFLX) stock?
ChartMill assigns a fundamental rating of 7 / 10 to NFLX.
What is the valuation status of NETFLIX INC (NFLX) stock?
ChartMill assigns a valuation rating of 5 / 10 to NETFLIX INC (NFLX). This can be considered as Fairly Valued.
What is the profitability of NFLX stock?
NETFLIX INC (NFLX) has a profitability rating of 9 / 10.
How financially healthy is NETFLIX INC?
The financial health rating of NETFLIX INC (NFLX) is 9 / 10.
What is the expected EPS growth for NETFLIX INC (NFLX) stock?
The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 26.69% in the next year.