NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - Euronext Milan - US64110L1061 - Common Stock - Currency: EUR
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 44 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 expensively, but it does show have an excellent growth rating. These ratings would make 1NFLX suitable 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.
In the past 5 years 1NFLX has always been profitable.
Each year in the past 5 years 1NFLX had a positive operating cash flow.
1.2 Ratios
1NFLX has a Return On Assets of 17.80%. This is amongst the best in the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Return On Equity of 38.58% is amongst the best of the industry. 1NFLX outperforms 93.18% of its industry peers.
1NFLX has a Return On Invested Capital of 22.93%. This is amongst the best in the industry. 1NFLX outperforms 97.73% 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 8.55%.
The 3 year average ROIC (16.17%) for 1NFLX is below the current ROIC(22.93%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.8% | ||
| ROE | 38.58% | ||
| ROIC | 22.93% |
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
Looking at the Profit Margin, with a value of 23.07%, 1NFLX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1NFLX's Profit Margin has improved in the last couple of years.
1NFLX's Operating Margin of 27.71% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
Looking at the Gross Margin, with a value of 46.92%, 1NFLX is in line with its industry, outperforming 52.27% of the companies in the same industry.
1NFLX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.71% | ||
| PM (TTM) | 23.07% | ||
| GM | 46.92% |
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
1NFLX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.05 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
1NFLX has a Altman-Z score of 12.05. This is amongst the best in the industry. 1NFLX outperforms 97.73% of its industry peers.
1NFLX has a debt to FCF ratio of 2.02. This is a good value and a sign of high solvency as 1NFLX would need 2.02 years to pay back of all of its debts.
1NFLX has a better Debt to FCF ratio (2.02) than 77.27% of its industry peers.
1NFLX has a Debt/Equity ratio of 0.58. This is a neutral value indicating 1NFLX is somewhat dependend on debt financing.
1NFLX's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. 1NFLX outperforms 52.27% of its industry peers.
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 | 0.58 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 12.05 |
ROIC/WACC2.61
WACC8.77%
2.3 Liquidity
1NFLX has a Current Ratio of 1.20. 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 Current ratio (1.20) than 72.73% of its industry peers.
A Quick Ratio of 1.20 indicates that 1NFLX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, 1NFLX is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.84% over the past year.
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.
Looking at the last year, 1NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.00% in the last year.
The Revenue has been growing by 14.11% on average over the past years. This is quite good.
EPS 1Y (TTM)46.84%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%25.19%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
3.2 Future
The Earnings Per Share is expected to grow by 19.27% on average over the next years. This is quite good.
1NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.16% yearly.
EPS Next Y27.98%
EPS Next 2Y24.78%
EPS Next 3Y23.08%
EPS Next 5Y19.27%
Revenue Next Year13.98%
Revenue Next 2Y12.88%
Revenue Next 3Y12.25%
Revenue Next 5Y11.16%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 51.80, which means the current valuation is very expensive for 1NFLX.
Based on the Price/Earnings ratio, 1NFLX is valued a bit cheaper than 68.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1NFLX to the average of the S&P500 Index (28.79), we can say 1NFLX is valued expensively.
With a Price/Forward Earnings ratio of 35.50, 1NFLX can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as 1NFLX.
1NFLX is valuated expensively when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.8 | ||
| Fwd PE | 35.5 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1NFLX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.97 | ||
| EV/EBITDA | 16.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 23.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)1.41
EPS Next 2Y24.78%
EPS Next 3Y23.08%
5. Dividend
5.1 Amount
No dividends for 1NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (4/25/2025, 7:00:00 PM)
963.5
+39.8 (+4.31%)
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 Cap412.15B
Analysts80.74
Price Target1001.55 (3.95%)
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)6.61%
Min EPS beat(2)-0.27%
Max EPS beat(2)13.49%
EPS beat(4)3
Avg EPS beat(4)4.4%
Min EPS beat(4)-0.27%
Max EPS beat(4)13.49%
EPS beat(8)6
Avg EPS beat(8)5.37%
EPS beat(12)8
Avg EPS beat(12)1.45%
EPS beat(16)11
Avg EPS beat(16)6.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.52%
Revenue beat(12)0
Avg Revenue beat(12)-1.65%
Revenue beat(16)0
Avg Revenue beat(16)-1.76%
PT rev (1m)-3.56%
PT rev (3m)22.58%
EPS NQ rev (1m)2.52%
EPS NQ rev (3m)7.13%
EPS NY rev (1m)0.49%
EPS NY rev (3m)4.52%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.46%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.8 | ||
| Fwd PE | 35.5 | ||
| P/S | 11.67 | ||
| P/FCF | 62.97 | ||
| P/OCF | 59.06 | ||
| P/B | 19.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.91 |
EPS(TTM)18.6
EY1.93%
EPS(NY)27.14
Fwd EY2.82%
FCF(TTM)15.3
FCFY1.59%
OCF(TTM)16.31
OCFY1.69%
SpS82.56
BVpS49.38
TBVpS-16.47
PEG (NY)1.85
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.8% | ||
| ROE | 38.58% | ||
| ROCE | 26.27% | ||
| ROIC | 22.93% | ||
| ROICexc | 28.58% | ||
| ROICexgc | 496.42% | ||
| OM | 27.71% | ||
| PM (TTM) | 23.07% | ||
| GM | 46.92% | ||
| FCFM | 18.53% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.02 | ||
| Debt/EBITDA | 0.52 | ||
| Cap/Depr | 3.12% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.5% | ||
| Profit Quality | 80.32% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 12.05 |
F-Score8
WACC8.77%
ROIC/WACC2.61
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)46.84%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%25.19%
EPS Next Y27.98%
EPS Next 2Y24.78%
EPS Next 3Y23.08%
EPS Next 5Y19.27%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year13.98%
Revenue Next 2Y12.88%
Revenue Next 3Y12.25%
Revenue Next 5Y11.16%
EBIT growth 1Y41.41%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year30.43%
EBIT Next 3Y21.76%
EBIT Next 5Y18.17%
FCF growth 1Y153.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y141.85%
OCF growth 3Y165.66%
OCF growth 5YN/A