82.2 USD
+1.33 (+1.64%)
At close: Feb 6, 2026
82.06 USD
-0.14 (-0.17%)
After Hours: 2/6/2026, 8:00:01 PM
Overall NFLX gets a fundamental rating of 7 out of 10. We evaluated NFLX against 80 industry peers in the Entertainment industry. NFLX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NFLX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, NFLX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- NFLX had positive earnings in the past year.
- In the past year NFLX had a positive cash flow from operations.
- In the past 5 years NFLX has always been profitable.
- NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NFLX has a better Return On Assets (19.75%) than 93.75% of its industry peers.
- NFLX's Return On Equity of 41.26% is amongst the best of the industry. NFLX outperforms 95.00% of its industry peers.
- The Return On Invested Capital of NFLX (25.95%) is better than 98.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NFLX is significantly above the industry average of 8.74%.
- The last Return On Invested Capital (25.95%) for NFLX is above the 3 year average (20.73%), which is a sign of increasing profitability.
| 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
- NFLX's Profit Margin of 24.30% is amongst the best of the industry. NFLX outperforms 95.00% of its industry peers.
- NFLX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 29.49%, NFLX belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
- NFLX's Operating Margin has improved in the last couple of years.
- NFLX has a Gross Margin of 48.49%. This is comparable to the rest of the industry: NFLX outperforms 57.50% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NFLX is creating value.
- Compared to 1 year ago, NFLX has more shares outstanding
- Compared to 5 years ago, NFLX has more shares outstanding
- The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 9.94 indicates that NFLX is not in any danger for bankruptcy at the moment.
- NFLX's Altman-Z score of 9.94 is amongst the best of the industry. NFLX outperforms 98.75% of its industry peers.
- The Debt to FCF ratio of NFLX is 1.53, which is an excellent value as it means it would take NFLX, only 1.53 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.53, NFLX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
- NFLX has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: NFLX outperforms 48.75% 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 | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 9.94 |
ROIC/WACC2.66
WACC9.75%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.19, NFLX is in line with its industry, outperforming 55.00% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
- NFLX has a Quick ratio (1.19) which is in line with 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 | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.43%, which is quite impressive.
- Measured over the past years, NFLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.92% on average per year.
- The Revenue has grown by 15.85% in the past year. This is quite good.
- NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
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
- NFLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.08% yearly.
- The Revenue is expected to grow by 10.32% on average over the next years. This is quite good.
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y20.08%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.32%
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
- With a Price/Earnings ratio of 32.49, NFLX can be considered very expensive at the moment.
- NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 77.50% of the companies in the same industry.
- NFLX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
- NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 25.68.
- 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.49 | ||
| Fwd PE | 25.68 |
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 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.92 | ||
| EV/EBITDA | 11.79 |
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.
- A more expensive valuation may be justified as NFLX's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)1.22
PEG (5Y)0.99
EPS Next 2Y24.07%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
82.2
+1.33 (+1.64%)
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 Change190.71%
Ins Owners0.02%
Ins Owner Change15.03%
Market Cap349.29B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.61
Price Target115.46 (40.46%)
Short Float %1.66%
Short Ratio1.49
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)-11.83%
PT rev (3m)-91.63%
EPS NQ rev (1m)-6.07%
EPS NQ rev (3m)-90.62%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-90.3%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.49 | ||
| Fwd PE | 25.68 | ||
| P/S | 7.73 | ||
| P/FCF | 36.92 | ||
| P/OCF | 34.42 | ||
| P/B | 13.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)2.53
EY3.08%
EPS(NY)3.2
Fwd EY3.89%
FCF(TTM)2.23
FCFY2.71%
OCF(TTM)2.39
OCFY2.91%
SpS10.63
BVpS6.26
TBVpS-1.45
PEG (NY)1.22
PEG (5Y)0.99
Graham Number18.88
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 | 9.94 |
F-Score7
WACC9.75%
ROIC/WACC2.66
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 5Y20.08%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.32%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year27.15%
EBIT Next 3Y20.8%
EBIT Next 5Y18.03%
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 8 / 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.