Exploring the Growth Potential of NASDAQ:NFLX as It Nears a Breakout.

Exploring Growth Potential: NETFLIX INC (NASDAQ:NFLX) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and NETFLIX INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected NETFLIX INC on our screen for growth with base formation, suggesting it merits a closer look.

A Closer Look at Growth for NASDAQ:NFLX

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NFLX has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 70.39% over the past year.
• NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.98% yearly.
• The Revenue has grown by 13.00% in the past year. This is quite good.
• The Revenue has been growing by 16.38% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 24.29% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 10.95% on average over the next years. This is quite good.

Health Assessment of NASDAQ:NFLX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NFLX has earned a 7 out of 10:

• An Altman-Z score of 8.13 indicates that NFLX is not in any danger for bankruptcy at the moment.
• NFLX's Altman-Z score of 8.13 is amongst the best of the industry. NFLX outperforms 98.61% of its industry peers.
• NFLX has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as NFLX would need 2.05 years to pay back of all of its debts.
• NFLX's Debt to FCF ratio of 2.05 is amongst the best of the industry. NFLX outperforms 83.33% 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.
• 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.

A Closer Look at Profitability for NASDAQ:NFLX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:NFLX, the assigned 8 is a significant indicator of profitability:

• NFLX has a better Return On Assets (14.45%) than 95.83% of its industry peers.
• NFLX has a Return On Equity of 32.08%. This is amongst the best in the industry. NFLX outperforms 93.06% of its industry peers.
• With an excellent Return On Invested Capital value of 18.37%, NFLX belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
• The 3 year average ROIC (13.36%) for NFLX is below the current ROIC(18.37%), indicating increased profibility in the last year.
• The Profit Margin of NFLX (19.54%) is better than 95.83% of its industry peers.
• In the last couple of years the Profit Margin of NFLX has grown nicely.
• The Operating Margin of NFLX (23.82%) is better than 95.83% of its industry peers.
• NFLX's Operating Margin has improved in the last couple of years.
• NFLX's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:NFLX

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:NFLX currently has a 7 as setup rating:

NFLX has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of NFLX contains the most current fundamental analsysis.

Our latest full technical report of NFLX contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.