NETFLIX INC (NFLX) Stock Fundamental Analysis
USA - NASDAQ:NFLX - US64110L1061 - Common Stock
1153.81 USD
-3.69 (-0.32%)
NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 79 industry peers in the Entertainment industry. NFLX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NFLX is not overvalued while it is showing excellent growth. This is an interesting combination. This makes NFLX very considerable 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
Looking at the Return On Assets, with a value of 18.99%, NFLX belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
NFLX has a better Return On Equity (40.19%) than 94.94% of its industry peers.
With an excellent Return On Invested Capital value of 24.41%, NFLX belongs to the best of the industry, outperforming 98.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NFLX is significantly above the industry average of 9.10%.
The last Return On Invested Capital (24.41%) for NFLX is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROIC | 24.41% |
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
NFLX's Profit Margin of 24.05% is amongst the best of the industry. NFLX outperforms 94.94% of its industry peers.
NFLX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.14%, NFLX belongs to the top of the industry, outperforming 97.47% of the companies in the same industry.
In the last couple of years the Operating Margin of NFLX has grown nicely.
With a Gross Margin value of 48.09%, NFLX perfoms like the industry average, outperforming 58.23% of the companies in the same industry.
NFLX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NFLX is creating value.
NFLX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NFLX has been reduced compared to 5 years ago.
Compared to 1 year ago, NFLX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.82 indicates that NFLX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.82, NFLX belongs to the top of the industry, outperforming 93.67% of the companies in the same industry.
The Debt to FCF ratio of NFLX is 1.61, which is an excellent value as it means it would take NFLX, only 1.61 years of fcf income to pay off all of its debts.
NFLX has a Debt to FCF ratio of 1.61. This is in the better half of the industry: NFLX outperforms 79.75% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NFLX is somewhat dependend on debt financing.
The Debt to Equity ratio of NFLX (0.56) is comparable to the rest of the 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 12.82 |
ROIC/WACC2.83
WACC8.63%
2.3 Liquidity
NFLX has a Current Ratio of 1.33. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting its short term obligations.
NFLX's Current ratio of 1.33 is in line compared to the rest of the industry. NFLX outperforms 59.49% of its industry peers.
NFLX has a Quick Ratio of 1.33. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NFLX (1.33) is better than 62.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.48% over the past year.
NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.86% yearly.
The Revenue has grown by 15.41% 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 14.11% yearly.
EPS 1Y (TTM)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
3.2 Future
NFLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.82% yearly.
NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.77% yearly.
EPS Next Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
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
With a Price/Earnings ratio of 48.20, NFLX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than 72.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. NFLX is valued rather expensively when compared to this.
NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 34.94.
69.62% of the companies in the same industry are more expensive than NFLX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.43. NFLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.2 | ||
| Fwd PE | 34.94 |
4.2 Price Multiples
NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 64.56% 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 64.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.68 | ||
| EV/EBITDA | 17.26 |
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.
A more expensive valuation may be justified as NFLX's earnings are expected to grow with 25.74% in the coming years.
PEG (NY)1.56
PEG (5Y)1.31
EPS Next 2Y29.04%
EPS Next 3Y25.74%
5. Dividend
5.1 Amount
No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NFLX (11/13/2025, 3:00:05 PM)
1153.81
-3.69 (-0.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change-1.83%
Ins Owners0.03%
Ins Owner Change-0.1%
Market Cap490.29B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target1379.47 (19.56%)
Short Float %1.43%
Short Ratio1.79
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)0
Avg EPS beat(2)-8.9%
Min EPS beat(2)-17.39%
Max EPS beat(2)-0.4%
EPS beat(4)1
Avg EPS beat(4)-1.14%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.49%
EPS beat(8)4
Avg EPS beat(8)0.94%
EPS beat(12)6
Avg EPS beat(12)-4.16%
EPS beat(16)10
Avg EPS beat(16)4.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.36%
Revenue beat(12)0
Avg Revenue beat(12)-1.67%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)0.03%
PT rev (3m)7.7%
EPS NQ rev (1m)0.95%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)-2.94%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.2 | ||
| Fwd PE | 34.94 | ||
| P/S | 11.3 | ||
| P/FCF | 54.68 | ||
| P/OCF | 51.21 | ||
| P/B | 18.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.26 |
EPS(TTM)23.94
EY2.07%
EPS(NY)33.02
Fwd EY2.86%
FCF(TTM)21.1
FCFY1.83%
OCF(TTM)22.53
OCFY1.95%
SpS102.08
BVpS61.08
TBVpS-15.73
PEG (NY)1.56
PEG (5Y)1.31
Graham Number181.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROCE | 27.97% | ||
| ROIC | 24.41% | ||
| ROICexc | 30.76% | ||
| ROICexgc | 340.72% | ||
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% | ||
| FCFM | 20.67% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 3.76% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.26% | ||
| Profit Quality | 85.96% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 12.82 |
F-Score8
WACC8.63%
ROIC/WACC2.83
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)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
EPS Next Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
EBIT Next 5Y21.45%
FCF growth 1Y57.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.12%
OCF growth 3Y165.66%
OCF growth 5YN/A
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 for 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.
What are the PE and PB ratios of NETFLIX INC (NFLX) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 48.2 and the Price/Book (PB) ratio is 18.89.