US64110L1061 - Common Stock

Overall **NFLX** gets a fundamental rating of **6** out of 10. We evaluated **NFLX** against 76 industry peers in the **Entertainment** industry. While **NFLX** belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. **NFLX** has a decent growth rate and is not valued too expensively.

Each year in the past 5 years **NFLX** has been profitable.

In multiple years **NFLX** reported negative operating cash flow during the last 5 years.

With an excellent **Return On Assets** value of **8.36%**, **NFLX** belongs to the best of the industry, outperforming **92.00%** of the companies in the same industry.

With an excellent **Return On Equity** value of **18.60%**, **NFLX** belongs to the best of the industry, outperforming **94.67%** of the companies in the same industry.

The **Return On Invested Capital** of **NFLX** (**10.78%**) is better than **89.33%** 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 **7.77%**.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 8.36% | ||

ROE | 18.6% | ||

ROIC | 10.78% |

ROA(3y)9.25%

ROA(5y)7.58%

ROE(3y)26.28%

ROE(5y)25.32%

ROIC(3y)13.22%

ROIC(5y)10.81%

In the last couple of years the **Operating Margin** of **NFLX** has grown nicely.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 17.51% | ||

PM | 13.22% | ||

GM | 38.77% |

OM growth 3Y11.31%

OM growth 5Y19.95%

PM growth 3Y15.33%

PM growth 5Y24.34%

GM growth 3Y0.94%

GM growth 5Y2.68%

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so **NFLX** is still creating some value.

The number of shares outstanding for **NFLX** has been increased compared to 1 year ago.

The debt/assets ratio for **NFLX** has been reduced compared to a year ago.

With a **Debt to Equity ratio** value of **0.62**, **NFLX** perfoms like the industry average, outperforming **45.33%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.62 | ||

Debt/FCF | 3.4 | ||

Altman-Z | 5.2 |

ROIC/WACC48.15

WACC9.04%

A Current Ratio of **1.33** indicates that **NFLX** should not have too much problems paying its short term obligations.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 1.33 | ||

Quick Ratio | 1.33 |

The earnings per share for **NFLX** have decreased strongly by **-16.53%** in the last year.

The **Revenue** has been growing slightly by **3.53%** in the past year.

The **Revenue** has been growing by **22.01%** on average over the past years. This is a very strong growth!

EPS 1Y-16.53%

EPS 3Y34.06%

EPS 5Y51.42%

EPS growth Q2Q2.81%

Revenue growth 1Y3.53%

Revenue growth 3Y16.19%

Revenue growth 5Y22.01%

Revenue growth Q2Q2.72%

Based on estimates for the next years, **NFLX** will show a very strong growth in **Earnings Per Share**. The EPS will grow by **20.78%** on average per year.

The **Revenue** is expected to grow by **9.45%** on average over the next years. This is quite good.

EPS Next Y21.89%

EPS Next 2Y25.74%

EPS Next 3Y25.66%

EPS Next 5Y20.78%

Revenue Next Year6.71%

Revenue Next 2Y10%

Revenue Next 3Y10.35%

Revenue Next 5Y9.45%

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 decreasing.

With a **Price/Earnings** ratio of **40.21**, **NFLX** can be considered very expensive at the moment.

74.67% of the companies in the same industry are more expensive than **NFLX**, based on the **Price/Earnings** ratio.

The average S&P500 **Price/Earnings** ratio is at **25.59**. **NFLX** is valued rather expensively when compared to this.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 40.21 | ||

Fwd PE | 24 |

Based on the **Enterprise Value to EBITDA** ratio, **NFLX** is valued a bit cheaper than the industry average as 77.33% of the companies are valued more expensively.

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | 39.28 | ||

EV/EBITDA | 8.43 |

The high **PEG Ratio(NY)**, which compensates the Price/Earnings for growth, indicates **NFLX** does not grow enough to justify the current Price/Earnings ratio.

The excellent profitability rating of **NFLX** may justify a higher PE ratio.

PEG (NY)1.84

PEG (5Y)0.78

EPS Next 2Y25.74%

EPS Next 3Y25.66%

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | N/A |

**NETFLIX INC**

NASDAQ:NFLX (9/27/2023, 7:00:01 PM)

After market: 378.34 +0.75 (+0.2%)**377.59**

**-1.66 (-0.44%) **

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupMedia & Entertainment

GICS IndustryEntertainment

Earnings (Last)07-19 2023-07-19/amc

Earnings (Next)10-16 2023-10-16/amc

Inst Owners84.66%

Inst Owner Change-7.92%

Ins Owners0%

Ins Owner Change0%

Market Cap167.33B

Analysts77.6

Price Target472.7 (25.19%)

Dividend

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | N/A |

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)5.73%

Min EPS beat(2)-1.31%

Max EPS beat(2)12.77%

EPS beat(4)2

Avg EPS beat(4)-4.85%

Min EPS beat(4)-73.76%

Max EPS beat(4)42.88%

Revenue beat(2)2

Avg Revenue beat(2)97212.5%

Min Revenue beat(2)96665.2%

Max Revenue beat(2)97759.8%

Revenue beat(4)4

Avg Revenue beat(4)97867.7%

Min Revenue beat(4)96665.2%

Max Revenue beat(4)99056.6%

PT rev (1m)0.01%

PT rev (3m)26.72%

EPS NQ rev (1m)0.04%

EPS NQ rev (3m)10.21%

EPS NY rev (1m)0.01%

EPS NY rev (3m)7.33%

Revenue NQ rev (1m)-99.9%

Revenue NQ rev (3m)-99.9%

Revenue NY rev (1m)0.1%

Revenue NY rev (3m)-0.54%

Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 40.21 | ||

Fwd PE | 24 | ||

P/S | 5.21 | ||

P/FCF | 39.28 | ||

P/OCF | 36.22 | ||

P/B | 7.33 | ||

P/tB | N/A | ||

EV/EBITDA | 8.43 |

EPS(TTM)9.39

EY2.49%

EPS(NY)15.73

Fwd EY4.17%

FCF(TTM)9.61

FCFY2.55%

OCF(TTM)10.42

OCFY2.76%

SpS72.5

BVpS51.52

TBVpS-21.86

PEG (NY)1.84

PEG (5Y)0.78

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 8.36% | ||

ROE | 18.6% | ||

ROCE | 13.35% | ||

ROIC | 10.78% | ||

ROICexc | 13.54% | ||

ROICexgc | 435.25% | ||

OM | 17.51% | ||

PM | 13.22% | ||

GM | 38.77% | ||

FCFM | 13.26% |

ROA(3y)9.25%

ROA(5y)7.58%

ROE(3y)26.28%

ROE(5y)25.32%

ROIC(3y)13.22%

ROIC(5y)10.81%

ROICexc(3y)16.51%

ROICexc(5y)13.46%

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)16.36%

ROCE(5y)13.38%

ROICexcg growth 3YN/A

ROICexcg growth 5Y4.87%

ROICexc growth 3Y11.37%

ROICexc growth 5Y15.78%

OM growth 3Y11.31%

OM growth 5Y19.95%

PM growth 3Y15.33%

PM growth 5Y24.34%

GM growth 3Y0.94%

GM growth 5Y2.68%

F-Score6

Asset Turnover0.63

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.62 | ||

Debt/FCF | 3.4 | ||

Debt/EBITDA | 0.69 | ||

Cap/Depr | 2.42% | ||

Cap/Sales | 1.12% | ||

Profit Quality | 100.33% | ||

Current Ratio | 1.33 | ||

Quick Ratio | 1.33 | ||

Altman-Z | 5.2 |

F-Score6

WACC9.04%

ROIC/WACC48.15

Cap/Depr(3y)3.87%

Cap/Depr(5y)3.42%

Cap/Sales(3y)1.68%

Cap/Sales(5y)1.53%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

Growth

EPS 1Y-16.53%

EPS 3Y34.06%

EPS 5Y51.42%

EPS growth Q2Q2.81%

EPS Next Y21.89%

EPS Next 2Y25.74%

EPS Next 3Y25.66%

EPS Next 5Y20.78%

Revenue growth 1Y3.53%

Revenue growth 3Y16.19%

Revenue growth 5Y22.01%

Revenue growth Q2Q2.72%

Revenue Next Year6.71%

Revenue Next 2Y10%

Revenue Next 3Y10.35%

Revenue Next 5Y9.45%

EBIT growth 1Y-5.26%

EBIT growth 3Y29.33%

EBIT growth 5Y46.35%

EBIT Next Year35.68%

EBIT Next 3Y28.27%

EBIT Next 5Y21.73%

FCF growth 1Y206.43%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y151.12%

OCF growth 3YN/A

OCF growth 5YN/A