NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
BIT:1NFLX - Euronext Milan - US64110L1061 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1NFLX. 1NFLX was compared to 45 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 valued quite expensively, but it does show have an excellent growth rating. 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.
In the past 5 years 1NFLX has always been profitable.
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 17.80%, 1NFLX belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
1NFLX has a Return On Equity of 38.58%. This is amongst the best in the industry. 1NFLX outperforms 91.11% of its industry peers.
With an excellent Return On Invested Capital value of 22.93%, 1NFLX belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
1NFLX had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 9.32%.
The last Return On Invested Capital (22.93%) for 1NFLX is above the 3 year average (16.17%), which is a sign of increasing profitability.
| 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
1NFLX has a Profit Margin of 23.07%. This is amongst the best in the industry. 1NFLX outperforms 95.56% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 27.71%, 1NFLX belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
1NFLX's Operating Margin has improved in the last couple of years.
1NFLX has a Gross Margin (46.92%) 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1NFLX is creating value.
1NFLX has less shares outstanding than it did 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
1NFLX has an Altman-Z score of 14.28. This indicates that 1NFLX is financially healthy and has little risk of bankruptcy at the moment.
1NFLX has a Altman-Z score of 14.28. This is amongst the best in the industry. 1NFLX outperforms 95.56% of its industry peers.
The Debt to FCF ratio of 1NFLX is 2.02, which is a good value as it means it would take 1NFLX, 2.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1NFLX (2.02) is better than 73.33% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that 1NFLX is somewhat dependend on debt financing.
1NFLX has a Debt to Equity ratio (0.58) which is comparable to the rest of the 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 | 0.58 | ||
| Debt/FCF | 2.02 | ||
| Altman-Z | 14.28 |
ROIC/WACC2.6
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.20 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX has a Current ratio of 1.20. This is in the better half of the industry: 1NFLX outperforms 73.33% of its industry peers.
1NFLX has a Quick 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's Quick ratio of 1.20 is fine compared to the rest of the industry. 1NFLX outperforms 73.33% of its industry peers.
| 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.
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)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
Based on estimates for the next years, 1NFLX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.15% on average per year.
The Revenue is expected to grow by 11.09% on average over the next years. This is quite good.
EPS Next Y31.14%
EPS Next 2Y26.15%
EPS Next 3Y24.35%
EPS Next 5Y20.15%
Revenue Next Year14.37%
Revenue Next 2Y13.28%
Revenue Next 3Y12.53%
Revenue Next 5Y11.09%
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
With a Price/Earnings ratio of 61.46, 1NFLX can be considered very expensive at the moment.
64.44% of the companies in the same industry are more expensive than 1NFLX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. 1NFLX is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 41.21 indicates a quite expensive valuation of 1NFLX.
The rest of the industry has a similar Price/Forward Earnings ratio as 1NFLX.
When comparing the Price/Forward Earnings ratio of 1NFLX to the average of the S&P500 Index (21.90), we can say 1NFLX is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.46 | ||
| Fwd PE | 41.21 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA is on the same level as 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 | 74.33 | ||
| EV/EBITDA | 20.77 |
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 24.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)1.67
EPS Next 2Y26.15%
EPS Next 3Y24.35%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (7/3/2025, 7:00:00 PM)
1103.8
+21.4 (+1.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.57%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap469.74B
Analysts80.7
Price Target1060.04 (-3.96%)
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)5.06%
PT rev (3m)2.07%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)11.91%
EPS NY rev (1m)0.02%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.46 | ||
| Fwd PE | 41.21 | ||
| P/S | 13.78 | ||
| P/FCF | 74.33 | ||
| P/OCF | 69.72 | ||
| P/B | 23.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.77 |
EPS(TTM)17.96
EY1.63%
EPS(NY)26.79
Fwd EY2.43%
FCF(TTM)14.85
FCFY1.35%
OCF(TTM)15.83
OCFY1.43%
SpS80.12
BVpS47.92
TBVpS-15.98
PEG (NY)1.97
PEG (5Y)1.67
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 | 14.28 |
F-Score8
WACC8.83%
ROIC/WACC2.6
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 Y31.14%
EPS Next 2Y26.15%
EPS Next 3Y24.35%
EPS Next 5Y20.15%
Revenue 1Y (TTM)15%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%12.51%
Revenue Next Year14.37%
Revenue Next 2Y13.28%
Revenue Next 3Y12.53%
Revenue Next 5Y11.09%
EBIT growth 1Y41.41%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year33.47%
EBIT Next 3Y22.92%
EBIT Next 5Y19.31%
FCF growth 1Y153.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y141.85%
OCF growth 3Y165.66%
OCF growth 5YN/A