91.245 USD
-2.52 (-2.68%)
NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 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.
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 each of the past 5 years.
1.2 Ratios
NFLX has a better Return On Assets (18.99%) than 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 40.19%, NFLX belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Return On Invested Capital of NFLX (24.41%) 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 8.70%.
The 3 year average ROIC (16.17%) for NFLX is below the current ROIC(24.41%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 24.05%. This is amongst the best in the industry. NFLX outperforms 95.00% 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 97.50% of the companies in the same industry.
In the last couple of years the Operating Margin of NFLX has grown nicely.
The Gross Margin of NFLX (48.09%) 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 | 29.14% | ||
| 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.
Compared to 1 year ago, NFLX has less shares outstanding
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 10.88 indicates that NFLX is not in any danger for bankruptcy at the moment.
NFLX has a Altman-Z score of 10.88. This is amongst the best in the industry. NFLX outperforms 95.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.61, NFLX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that NFLX is somewhat dependend on debt financing.
NFLX has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: NFLX outperforms 50.00% 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.88 |
ROIC/WACC2.32
WACC10.54%
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.
Looking at the Current ratio, with a value of 1.33, NFLX is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX's Quick ratio of 1.33 is fine compared to the rest of the industry. NFLX outperforms 63.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
The Earnings Per Share has been growing by 36.86% on average over the past years. This is a very strong growth
Looking at the last year, NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.41% in the last year.
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
The Earnings Per Share is expected to grow by 22.16% on average over the next years. This is a very strong growth
Based on estimates for the next years, NFLX will show a quite strong growth in Revenue. The Revenue will grow by 11.77% on average per year.
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y22.16%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
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 38.18, NFLX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
NFLX is valuated rather expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.58, which means the current valuation is very expensive for NFLX.
Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than 76.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NFLX to the average of the S&P500 Index (23.13), we can say NFLX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 27.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 71.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.24 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
NFLX's 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 26.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.04
EPS Next 2Y29.16%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:NFLX (1/2/2026, 3:08:10 PM)
91.245
-2.52 (-2.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner Change-0.39%
Ins Owners0.03%
Ins Owner Change-0.1%
Market Cap387.72B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target130.94 (43.5%)
Short Float %N/A
Short Ratio2.63
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)-8.9%
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)-90.51%
PT rev (3m)-90.47%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-89.89%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-90.27%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.18 | ||
| Fwd PE | 27.58 | ||
| P/S | 8.94 | ||
| P/FCF | 43.24 | ||
| P/OCF | 40.5 | ||
| P/B | 14.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)2.39
EY2.62%
EPS(NY)3.31
Fwd EY3.63%
FCF(TTM)2.11
FCFY2.31%
OCF(TTM)2.25
OCFY2.47%
SpS10.21
BVpS6.11
TBVpS-1.57
PEG (NY)1.22
PEG (5Y)1.04
Graham Number18.12
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 | 10.88 |
F-Score8
WACC10.54%
ROIC/WACC2.32
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 Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y22.16%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year34.36%
EBIT Next 3Y25.65%
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 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 31.21% in the next year.