NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
79.2 EUR
-0.45 (-0.56%)
Taking everything into account, 1NFLX scores 7 out of 10 in our fundamental rating. 1NFLX was compared to 51 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make 1NFLX a good candidate 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.
1NFLX had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of 1NFLX (40.19%) is better than 92.16% of its industry peers.
1NFLX's Return On Invested Capital of 24.41% is amongst the best of 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 9.50%.
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.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
Looking at the Operating Margin, with a value of 29.14%, 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 Operating Margin of 1NFLX has grown nicely.
Looking at the Gross Margin, with a value of 48.09%, 1NFLX is in line with its industry, outperforming 45.10% of the companies in the same 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.
1NFLX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1NFLX has an improved debt to assets ratio.
2.2 Solvency
1NFLX has an Altman-Z score of 10.85. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
1NFLX has a Altman-Z score of 10.85. This is amongst the best in the industry. 1NFLX outperforms 92.16% 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.
With a decent Debt to FCF ratio value of 1.61, 1NFLX is doing good in the industry, outperforming 74.51% of the companies in the same industry.
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 50.98% 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.85 |
ROIC/WACC2.5
WACC9.78%
2.3 Liquidity
1NFLX has a Current 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.
1NFLX has a better Current ratio (1.33) than 70.59% 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.
Looking at the Quick ratio, with a value of 1.33, 1NFLX is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.48% over the past year.
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 15.41% 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
1NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.77% yearly.
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
With a Price/Earnings ratio of 39.01, 1NFLX can be considered very expensive at the moment.
70.59% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.57, 1NFLX is valued a bit more expensive.
With a Price/Forward Earnings ratio of 28.22, 1NFLX can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NFLX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.04. 1NFLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 28.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1NFLX.
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 | 44.24 | ||
| EV/EBITDA | 13.96 |
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.
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
No dividends for 1NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1NFLX (12/23/2025, 7:00:00 PM)
79.2
-0.45 (-0.56%)
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 Cap336.54B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target113.1 (42.8%)
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)-90.41%
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 | 39.01 | ||
| Fwd PE | 28.22 | ||
| P/S | 9.14 | ||
| P/FCF | 44.24 | ||
| P/OCF | 41.43 | ||
| P/B | 15.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.96 |
EPS(TTM)2.03
EY2.56%
EPS(NY)2.81
Fwd EY3.54%
FCF(TTM)1.79
FCFY2.26%
OCF(TTM)1.91
OCFY2.41%
SpS8.66
BVpS5.18
TBVpS-1.33
PEG (NY)1.25
PEG (5Y)1.06
Graham Number15.38
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 | 10.85 |
F-Score8
WACC9.78%
ROIC/WACC2.5
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 Year34.38%
EBIT Next 3Y25.28%
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 for 1NFLX 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.
How financially healthy is NETFLIX INC?
The financial health rating of NETFLIX INC (1NFLX.MI) is 8 / 10.
Can you provide the expected EPS growth for 1NFLX stock?
The Earnings per Share (EPS) of NETFLIX INC (1NFLX.MI) is expected to grow by 31.21% in the next year.