NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
79.79 EUR
-0.09 (-0.11%)
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 44 industry peers in the Entertainment industry. 1NFLX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1NFLX is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, 1NFLX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1NFLX was profitable.
In the past year 1NFLX had a positive cash flow from operations.
Each year in the past 5 years 1NFLX has been profitable.
1NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1NFLX has a better Return On Assets (18.99%) than 100.00% of its industry peers.
1NFLX has a better Return On Equity (40.19%) than 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 24.41%, 1NFLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1NFLX is significantly above the industry average of 10.29%.
The last Return On Invested Capital (24.41%) for 1NFLX 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
1NFLX's Profit Margin of 24.05% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
1NFLX's Operating Margin of 29.14% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 48.09%, 1NFLX perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
1NFLX'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 1NFLX is creating value.
The number of shares outstanding for 1NFLX has been reduced compared to 1 year ago.
Compared to 5 years ago, 1NFLX has less shares outstanding
Compared to 1 year ago, 1NFLX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.88 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.88, 1NFLX belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
The Debt to FCF ratio of 1NFLX is 1.61, which is an excellent value as it means it would take 1NFLX, only 1.61 years of fcf income to pay off all of its debts.
1NFLX's Debt to FCF ratio of 1.61 is fine compared to the rest of the industry. 1NFLX outperforms 77.27% of its industry peers.
1NFLX has a Debt/Equity ratio of 0.56. This is a neutral value indicating 1NFLX is somewhat dependend on debt financing.
1NFLX's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. 1NFLX outperforms 56.82% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1NFLX, 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
A Current Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX's Current ratio of 1.33 is fine compared to the rest of the industry. 1NFLX outperforms 72.73% of its industry peers.
A Quick Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
The Quick ratio of 1NFLX (1.33) is better than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1NFLX 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, 1NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.41% in the last year.
Measured over the past years, 1NFLX shows a quite strong growth in Revenue. The Revenue has been growing by 14.11% on average per year.
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, 1NFLX 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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.11, which means the current valuation is very expensive for 1NFLX.
77.27% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1NFLX to the average of the S&P500 Index (26.51), we can say 1NFLX is valued slightly more expensively.
1NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 28.34.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NFLX indicates a somewhat cheap valuation: 1NFLX is cheaper than 63.64% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1NFLX to the average of the S&P500 Index (23.13), we can say 1NFLX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.11 | ||
| Fwd PE | 28.34 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is in line with the industry average.
1NFLX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.43 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
1NFLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1NFLX may justify a higher PE ratio.
1NFLX's earnings are expected to grow with 26.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.06
EPS Next 2Y29.16%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
No dividends for 1NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1NFLX (12/30/2025, 7:00:00 PM)
79.79
-0.09 (-0.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap339.05B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target113.1 (41.75%)
Short Float %N/A
Short RatioN/A
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)-5.55%
PT rev (3m)-90.25%
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 | 39.11 | ||
| Fwd PE | 28.34 | ||
| P/S | 9.18 | ||
| P/FCF | 44.43 | ||
| P/OCF | 41.61 | ||
| P/B | 15.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)2.04
EY2.56%
EPS(NY)2.82
Fwd EY3.53%
FCF(TTM)1.8
FCFY2.25%
OCF(TTM)1.92
OCFY2.4%
SpS8.69
BVpS5.2
TBVpS-1.34
PEG (NY)1.25
PEG (5Y)1.06
Graham Number15.45
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 / 1NFLX.MI FAQ
What is the ChartMill fundamental rating of NETFLIX INC (1NFLX.MI) stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1NFLX.MI.
What is the valuation status of NETFLIX INC (1NFLX.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to NETFLIX INC (1NFLX.MI). This can be considered as Fairly Valued.
How profitable is NETFLIX INC (1NFLX.MI) stock?
NETFLIX INC (1NFLX.MI) has a profitability rating of 9 / 10.
What are the PE and PB ratios of NETFLIX INC (1NFLX.MI) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (1NFLX.MI) is 39.11 and the Price/Book (PB) ratio is 15.35.