NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
79.2 EUR
-0.45 (-0.56%)
1NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 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 priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make 1NFLX suitable 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.
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
With an excellent Return On Assets value of 18.99%, 1NFLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of 1NFLX (40.19%) is better than 92.16% of its industry peers.
With an excellent Return On Invested Capital value of 24.41%, 1NFLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1NFLX is significantly above the industry average of 9.50%.
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.
1NFLX's Profit Margin has improved in the last couple of years.
1NFLX's Operating Margin of 29.14% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Operating Margin has improved in the last couple of years.
1NFLX has a Gross Margin (48.09%) which is comparable to the rest of the industry.
1NFLX's Gross Margin has improved in the last couple of years.
| 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
1NFLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1NFLX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1NFLX has been reduced compared to 5 years ago.
The debt/assets ratio for 1NFLX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.85 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
1NFLX has a better Altman-Z score (10.85) than 92.16% of its industry peers.
1NFLX has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
1NFLX has a Debt to FCF ratio of 1.61. This is in the better half of the industry: 1NFLX outperforms 74.51% 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.
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/WACC2.49
WACC9.79%
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's Current ratio of 1.33 is fine compared to the rest of the industry. 1NFLX outperforms 70.59% 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 70.59% 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 22.16% on average per year.
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
1NFLX is valuated quite expensively with a Price/Earnings ratio of 39.01.
Based on the Price/Earnings ratio, 1NFLX is valued a bit cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, 1NFLX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 28.22 |
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 | 44.24 | ||
| EV/EBITDA | 13.96 |
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 26.35% in the coming years. This may justify a more expensive valuation.
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
WACC9.79%
ROIC/WACC2.49
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.