NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
79.79 EUR
-0.09 (-0.11%)
We assign a fundamental rating of 7 out of 10 to 1NFLX. 1NFLX was compared to 44 industry peers in the Entertainment industry. 1NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. 1NFLX is growing strongly while it is still valued neutral. This is a good 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.
The Return On Invested Capital of 1NFLX (24.41%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NFLX is significantly above the industry average of 10.29%.
The 3 year average ROIC (16.17%) for 1NFLX is below the current ROIC(24.41%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 24.05%, 1NFLX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
With an excellent Operating Margin value of 29.14%, 1NFLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
1NFLX has a Gross Margin (48.09%) which is comparable to the rest of the industry.
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
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
The debt/assets ratio for 1NFLX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.88 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
1NFLX has a better Altman-Z score (10.88) than 93.18% 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 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.
With a Debt to Equity ratio value of 0.56, 1NFLX perfoms like the industry average, outperforming 56.82% of the companies in the same industry.
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 has a better Current ratio (1.33) than 72.73% of its industry peers.
1NFLX has a Quick Ratio of 1.33. This is a normal value and indicates that 1NFLX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.33, 1NFLX is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| 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.
1NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.11% yearly.
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
The Revenue is expected to grow by 11.77% on average over the next years. This is quite good.
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
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 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
With a Price/Earnings ratio of 39.11, 1NFLX can be considered very expensive at the moment.
1NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1NFLX is cheaper than 77.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. 1NFLX is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 28.34, 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 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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1NFLX.
1NFLX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.43 | ||
| EV/EBITDA | 14.02 |
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.
A more expensive valuation may be justified as 1NFLX's earnings are expected to grow with 26.35% in the coming years.
PEG (NY)1.25
PEG (5Y)1.06
EPS Next 2Y29.16%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| 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.