NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
75.93 EUR
-0.97 (-1.26%)
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making 1NFLX a very profitable company, without any liquidiy or solvency issues. 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.
- 1NFLX had a positive operating cash flow in the past year.
- Each year in the past 5 years 1NFLX has been profitable.
- In the past 5 years 1NFLX always reported a positive cash flow from operatings.
1.2 Ratios
- 1NFLX has a Return On Assets of 18.99%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
- 1NFLX has a better Return On Equity (40.19%) than 91.67% of its industry peers.
- 1NFLX has a Return On Invested Capital of 24.41%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
- 1NFLX had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 9.05%.
- 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
- The Profit Margin of 1NFLX (24.05%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of 1NFLX has grown nicely.
- 1NFLX has a better Operating Margin (29.14%) than 100.00% of its industry peers.
- 1NFLX's Operating Margin has improved in the last couple of years.
- 1NFLX's Gross Margin of 48.09% is in line compared to the rest of the industry. 1NFLX outperforms 50.00% of its industry peers.
- In the last couple of years the Gross Margin of 1NFLX 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NFLX is creating value.
- Compared to 1 year ago, 1NFLX has less shares outstanding
- Compared to 5 years ago, 1NFLX has less shares outstanding
- The debt/assets ratio for 1NFLX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 10.40 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
- 1NFLX has a better Altman-Z score (10.40) than 95.83% of its industry peers.
- 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.
- The Debt to FCF ratio of 1NFLX (1.61) is better than 81.25% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that 1NFLX is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.56, 1NFLX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- Although 1NFLX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.4 |
ROIC/WACC2.32
WACC10.53%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
- 1NFLX has a Current ratio of 1.33. This is in the better half of the industry: 1NFLX outperforms 79.17% of its industry peers.
- A Quick Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
- 1NFLX has a better Quick ratio (1.33) than 79.17% 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.
- Measured over the past years, 1NFLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.86% on average per year.
- The Revenue has grown by 15.41% in the past year. This is quite good.
- The Revenue has been growing by 14.11% on average over the past years. This is quite good.
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
- Based on estimates for the next years, 1NFLX will show a very strong growth in Earnings Per Share. The EPS will grow by 21.58% on average per year.
- The Revenue is expected to grow by 11.63% on average over the next years. This is quite good.
EPS Next Y32.22%
EPS Next 2Y29.06%
EPS Next 3Y26.18%
EPS Next 5Y21.58%
Revenue Next Year15.95%
Revenue Next 2Y14.51%
Revenue Next 3Y13.46%
Revenue Next 5Y11.63%
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 36.86, which means the current valuation is very expensive for 1NFLX.
- 77.08% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Earnings ratio.
- 1NFLX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.38.
- The Price/Forward Earnings ratio is 26.71, which means the current valuation is very expensive for 1NFLX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NFLX indicates a somewhat cheap valuation: 1NFLX is cheaper than 64.58% of the companies listed in the same industry.
- 1NFLX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.86 | ||
| Fwd PE | 26.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NFLX is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1NFLX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.8 | ||
| EV/EBITDA | 13.2 |
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 1NFLX may justify a higher PE ratio.
- A more expensive valuation may be justified as 1NFLX's earnings are expected to grow with 26.18% in the coming years.
PEG (NY)1.14
PEG (5Y)1
EPS Next 2Y29.06%
EPS Next 3Y26.18%
5. Dividend
5.1 Amount
- 1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1NFLX (1/16/2026, 7:00:00 PM)
75.93
-0.97 (-1.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)01-20 2026-01-20/amc
Inst Owners79.69%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap322.65B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts79.61
Price Target112.18 (47.74%)
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)-1.15%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.44%
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)-4.23%
PT rev (3m)-90.42%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-89.85%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-90.2%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.86 | ||
| Fwd PE | 26.71 | ||
| P/S | 8.64 | ||
| P/FCF | 41.8 | ||
| P/OCF | 39.15 | ||
| P/B | 14.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.2 |
EPS(TTM)2.06
EY2.71%
EPS(NY)2.84
Fwd EY3.74%
FCF(TTM)1.82
FCFY2.39%
OCF(TTM)1.94
OCFY2.55%
SpS8.79
BVpS5.26
TBVpS-1.35
PEG (NY)1.14
PEG (5Y)1
Graham Number15.61
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 | 10.4 |
F-Score8
WACC10.53%
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 Y32.22%
EPS Next 2Y29.06%
EPS Next 3Y26.18%
EPS Next 5Y21.58%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.95%
Revenue Next 2Y14.51%
Revenue Next 3Y13.46%
Revenue Next 5Y11.63%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year34.36%
EBIT Next 3Y25.65%
EBIT Next 5Y21.31%
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 36.86 and the Price/Book (PB) ratio is 14.44.