NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - Euronext Milan - US64110L1061 - Common Stock - Currency: EUR
Overall 1NFLX gets a fundamental rating of 7 out of 10. We evaluated 1NFLX against 46 industry peers in the Entertainment industry. 1NFLX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1NFLX is valued quite expensive, but it does show an excellent growth. This makes 1NFLX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
1NFLX had positive earnings in the past year.
1NFLX had a positive operating cash flow in the past year.
1NFLX had positive earnings in each of the past 5 years.
In the past 5 years 1NFLX always reported a positive cash flow from operatings.
1.2 Ratios
1NFLX's Return On Assets of 16.24% is amongst the best of the industry. 1NFLX outperforms 97.83% of its industry peers.
The Return On Equity of 1NFLX (35.21%) is better than 91.30% of its industry peers.
1NFLX has a Return On Invested Capital of 21.21%. This is amongst the best in the industry. 1NFLX outperforms 97.83% 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 8.15%.
The 3 year average ROIC (16.17%) for 1NFLX is below the current ROIC(21.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 35.21% | ||
| ROIC | 21.21% |
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 22.34% is amongst the best of the industry. 1NFLX outperforms 95.65% of its industry peers.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
1NFLX has a better Operating Margin (26.71%) than 93.48% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
1NFLX has a Gross Margin (46.06%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1NFLX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.71% | ||
| PM (TTM) | 22.34% | ||
| GM | 46.06% |
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
1NFLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1NFLX has been reduced compared to 1 year ago.
The number of shares outstanding for 1NFLX has been reduced compared to 5 years ago.
Compared to 1 year ago, 1NFLX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.94 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.94, 1NFLX belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
1NFLX has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as 1NFLX would need 2.25 years to pay back of all of its debts.
1NFLX's Debt to FCF ratio of 2.25 is amongst the best of the industry. 1NFLX outperforms 80.43% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1NFLX is somewhat dependend on debt financing.
1NFLX has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: 1NFLX outperforms 54.35% 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 | 2.25 | ||
| Altman-Z | 9.94 |
ROIC/WACC2.42
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.22 indicates that 1NFLX should not have too much problems paying its short term obligations.
The Current ratio of 1NFLX (1.22) is better than 67.39% of its industry peers.
1NFLX has a Quick Ratio of 1.22. This is a normal value and indicates that 1NFLX is financially healthy and should not expect problems in meeting its short term obligations.
1NFLX has a better Quick ratio (1.22) than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
1NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.11%, 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
The Revenue has grown by 15.65% 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)65.11%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%102.37%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%16%
3.2 Future
1NFLX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.30% yearly.
The Revenue is expected to grow by 10.85% on average over the next years. This is quite good.
EPS Next Y27.36%
EPS Next 2Y24.9%
EPS Next 3Y23%
EPS Next 5Y18.3%
Revenue Next Year13.93%
Revenue Next 2Y12.95%
Revenue Next 3Y12.25%
Revenue Next 5Y10.85%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 43.73 indicates a quite expensive valuation of 1NFLX.
1NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1NFLX is cheaper than 67.39% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1NFLX is valued a bit more expensive.
1NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 34.33.
1NFLX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1NFLX is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.73 | ||
| Fwd PE | 34.33 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1NFLX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.58 | ||
| EV/EBITDA | 14.4 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1NFLX has an outstanding profitability rating, which may justify a higher PE ratio.
1NFLX's earnings are expected to grow with 23.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)1.19
EPS Next 2Y24.9%
EPS Next 3Y23%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (3/7/2025, 7:00:00 PM)
798.5
-87.9 (-9.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.17%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap341.57B
Analysts80.38
Price Target1038.54 (30.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)1.61%
Min EPS beat(2)-0.27%
Max EPS beat(2)3.48%
EPS beat(4)3
Avg EPS beat(4)4.64%
Min EPS beat(4)-0.27%
Max EPS beat(4)14.46%
EPS beat(8)5
Avg EPS beat(8)3.52%
EPS beat(12)8
Avg EPS beat(12)1.96%
EPS beat(16)11
Avg EPS beat(16)7.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.58%
Revenue beat(12)0
Avg Revenue beat(12)-1.74%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)0.36%
PT rev (3m)39.49%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-5.75%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.73 | ||
| Fwd PE | 34.33 | ||
| P/S | 9.51 | ||
| P/FCF | 53.58 | ||
| P/OCF | 50.38 | ||
| P/B | 14.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.4 |
EPS(TTM)18.26
EY2.29%
EPS(NY)23.26
Fwd EY2.91%
FCF(TTM)14.9
FCFY1.87%
OCF(TTM)15.85
OCFY1.99%
SpS83.98
BVpS53.28
TBVpS-16.6
PEG (NY)1.6
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 35.21% | ||
| ROCE | 24.3% | ||
| ROIC | 21.21% | ||
| ROICexc | 27.31% | ||
| ROICexgc | 1084.06% | ||
| OM | 26.71% | ||
| PM (TTM) | 22.34% | ||
| GM | 46.06% | ||
| FCFM | 17.75% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.25 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 2.81% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 15.44 | ||
| Cash Conversion | 28.26% | ||
| Profit Quality | 79.46% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 9.94 |
F-Score8
WACC8.76%
ROIC/WACC2.42
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)65.11%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%102.37%
EPS Next Y27.36%
EPS Next 2Y24.9%
EPS Next 3Y23%
EPS Next 5Y18.3%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%16%
Revenue Next Year13.93%
Revenue Next 2Y12.95%
Revenue Next 3Y12.25%
Revenue Next 5Y10.85%
EBIT growth 1Y49.81%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year30.31%
EBIT Next 3Y22.08%
EBIT Next 5Y18.36%
FCF growth 1Y-0.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.2%
OCF growth 3Y165.66%
OCF growth 5YN/A