NETFLIX INC (NFLX) Fundamental Analysis & Valuation
NASDAQ:NFLX • US64110L1061
Current stock price
92.58 USD
-2.25 (-2.37%)
At close:
93.1671 USD
+0.59 (+0.63%)
Pre-Market:
This NFLX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. NFLX Profitability Analysis
1.1 Basic Checks
- In the past year NFLX was profitable.
- NFLX had a positive operating cash flow in the past year.
- Each year in the past 5 years NFLX has been profitable.
- Each year in the past 5 years NFLX had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 21.92%, NFLX belongs to the best of the industry, outperforming 96.20% of the companies in the same industry.
- NFLX's Return On Equity of 42.97% is amongst the best of the industry. NFLX outperforms 97.47% of its industry peers.
- NFLX's Return On Invested Capital of 24.76% is amongst the best of the industry. NFLX outperforms 97.47% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NFLX is significantly below the industry average of 159.07%.
- The 3 year average ROIC (20.73%) for NFLX is below the current ROIC(24.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.92% | ||
| ROE | 42.97% | ||
| ROIC | 24.76% |
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 has a better Profit Margin (28.52%) than 94.94% of its industry peers.
- NFLX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 29.72%, NFLX belongs to the best 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.
- The Gross Margin of NFLX (49.03%) is comparable to the rest of the industry.
- NFLX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.72% | ||
| PM (TTM) | 28.52% | ||
| GM | 49.03% |
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. NFLX Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NFLX is creating value.
- Compared to 1 year ago, NFLX has less shares outstanding
- 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 10.56 indicates that NFLX is not in any danger for bankruptcy at the moment.
- NFLX's Altman-Z score of 10.56 is amongst the best of the industry. NFLX outperforms 98.73% of its industry peers.
- NFLX has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.21, NFLX belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
- A Debt/Equity ratio of 0.43 indicates that NFLX is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.43, NFLX perfoms like the industry average, outperforming 49.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.21 | ||
| Altman-Z | 10.56 |
ROIC/WACC2.77
WACC8.93%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that NFLX should not have too much problems paying its short term obligations.
- NFLX has a Current ratio of 1.41. This is in the better half of the industry: NFLX outperforms 62.03% of its industry peers.
- A Quick Ratio of 1.41 indicates that NFLX should not have too much problems paying its short term obligations.
- The Quick ratio of NFLX (1.41) is better than 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. NFLX Growth Analysis
3.1 Past
- NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.27%, which is quite impressive.
- The Earnings Per Share has been growing by 32.92% on average over the past years. This is a very strong growth
- NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.72%.
- 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)21.27%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%5.9%
Revenue 1Y (TTM)16.72%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%16.19%
3.2 Future
- The Earnings Per Share is expected to grow by 18.40% on average over the next years. This is quite good.
- NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.43% yearly.
EPS Next Y28.18%
EPS Next 2Y24.81%
EPS Next 3Y22.64%
EPS Next 5Y18.4%
Revenue Next Year13.98%
Revenue Next 2Y12.85%
Revenue Next 3Y11.93%
Revenue Next 5Y10.43%
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. NFLX Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 36.02, the valuation of NFLX can be described as expensive.
- Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than the industry average as 79.75% of the companies are valued more expensively.
- NFLX is valuated rather expensively when we compare the Price/Earnings ratio to 27.66, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 23.52 indicates a rather expensive valuation of NFLX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NFLX indicates a rather cheap valuation: NFLX is cheaper than 81.01% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 38.00. NFLX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.02 | ||
| Fwd PE | 23.52 |
4.2 Price Multiples
- NFLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NFLX is cheaper than 81.01% 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 73.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.86 | ||
| EV/EBITDA | 12.63 |
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 22.64% in the coming years.
PEG (NY)1.28
PEG (5Y)1.09
EPS Next 2Y24.81%
EPS Next 3Y22.64%
5. NFLX Dividend Analysis
5.1 Amount
- No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NFLX Fundamentals: All Metrics, Ratios and Statistics
92.58
-2.25 (-2.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)04-16 2026-04-16/amc
Earnings (Next)07-15 2026-07-15/amc
Inst Owners83.79%
Inst Owner Change0.15%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap390.89B
Revenue(TTM)46.89B
Net Income(TTM)13.37B
Analysts80.68
Price Target117.02 (26.4%)
Short Float %1.91%
Short Ratio1.76
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)-5.33%
Min EPS beat(2)-10.16%
Max EPS beat(2)-0.51%
EPS beat(4)0
Avg EPS beat(4)-7.11%
Min EPS beat(4)-17.39%
Max EPS beat(4)-0.4%
EPS beat(8)3
Avg EPS beat(8)-1.37%
EPS beat(12)6
Avg EPS beat(12)1.2%
EPS beat(16)8
Avg EPS beat(16)-0.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.29%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)0
Avg Revenue beat(16)-1.65%
PT rev (1m)1.35%
PT rev (3m)-9.99%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.02 | ||
| Fwd PE | 23.52 | ||
| P/S | 8.34 | ||
| P/FCF | 32.86 | ||
| P/OCF | 30.9 | ||
| P/B | 12.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.63 |
EPS(TTM)2.57
EY2.78%
EPS(NY)3.94
Fwd EY4.25%
FCF(TTM)2.82
FCFY3.04%
OCF(TTM)3
OCFY3.24%
SpS11.11
BVpS7.37
TBVpS-0.53
PEG (NY)1.28
PEG (5Y)1.09
Graham Number20.6469 (-77.7%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.92% | ||
| ROE | 42.97% | ||
| ROCE | 28.51% | ||
| ROIC | 24.76% | ||
| ROICexc | 33.08% | ||
| ROICexgc | 376.01% | ||
| OM | 29.72% | ||
| PM (TTM) | 28.52% | ||
| GM | 49.03% | ||
| FCFM | 25.37% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.21 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 4.4% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 40.67% | ||
| Profit Quality | 88.94% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 10.56 |
F-Score7
WACC8.93%
ROIC/WACC2.77
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)21.27%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%5.9%
EPS Next Y28.18%
EPS Next 2Y24.81%
EPS Next 3Y22.64%
EPS Next 5Y18.4%
Revenue 1Y (TTM)16.72%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%16.19%
Revenue Next Year13.98%
Revenue Next 2Y12.85%
Revenue Next 3Y11.93%
Revenue Next 5Y10.43%
EBIT growth 1Y25.19%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year28.05%
EBIT Next 3Y21.23%
EBIT Next 5Y18.31%
FCF growth 1Y71.24%
FCF growth 3Y80.14%
FCF growth 5Y37.44%
OCF growth 1Y73.1%
OCF growth 3Y71.1%
OCF growth 5Y33.13%
NETFLIX INC / NFLX Fundamental Analysis 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 6 / 10 to NETFLIX INC (NFLX). This can be considered as Fairly Valued.
How profitable is NETFLIX INC (NFLX) stock?
NETFLIX INC (NFLX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of NETFLIX INC (NFLX) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 36.02 and the Price/Book (PB) ratio is 12.56.
What is the earnings growth outlook for NETFLIX INC?
The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 28.18% in the next year.