NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NFLX - US64110L1061 - Common Stock
81.06 EUR
+0.98 (+1.22%)
We assign a fundamental rating of 7 out of 10 to 1NFLX. 1NFLX was compared to 48 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
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.
Looking at the Return On Equity, with a value of 40.19%, 1NFLX belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Invested Capital of 1NFLX (24.41%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1NFLX is significantly above the industry average of 10.43%.
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
1NFLX's Profit Margin of 24.05% is amongst the best of the industry. 1NFLX outperforms 100.00% of its industry peers.
1NFLX's Profit Margin has improved in the last couple of years.
The Operating Margin of 1NFLX (29.14%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of 1NFLX has grown nicely.
The Gross Margin of 1NFLX (48.09%) 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.
1NFLX has less shares outstanding than it did 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 10.89 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
1NFLX has a better Altman-Z score (10.89) than 93.75% 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 better Debt to FCF ratio (1.61) than 77.08% 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 52.08% of the companies in the same industry.
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 | 10.89 |
ROIC/WACC2.83
WACC8.62%
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.
With a decent Current ratio value of 1.33, 1NFLX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that 1NFLX should not have too much problems paying its short term obligations.
1NFLX has a Quick ratio of 1.33. This is in the better half of the industry: 1NFLX outperforms 75.00% of its industry peers.
| 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.
1NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.86% yearly.
1NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.41%.
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
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.
Based on estimates for the next years, 1NFLX will show a quite strong growth in Revenue. The Revenue will grow by 11.77% on average per year.
EPS Next Y30.97%
EPS Next 2Y29.03%
EPS Next 3Y26.26%
EPS Next 5Y22.16%
Revenue Next Year15.91%
Revenue Next 2Y14.42%
Revenue Next 3Y13.34%
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
Based on the Price/Earnings ratio of 39.74, the valuation of 1NFLX can be described as expensive.
1NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. 1NFLX is cheaper than 70.83% of the companies in the same industry.
1NFLX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 28.76, 1NFLX can be considered very expensive at the moment.
1NFLX's Price/Forward Earnings ratio is in line with the industry average.
1NFLX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.74 | ||
| Fwd PE | 28.76 |
4.2 Price Multiples
1NFLX's Enterprise Value to EBITDA ratio is in line with the industry average.
1NFLX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45 | ||
| 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.
1NFLX's earnings are expected to grow with 26.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)1.08
EPS Next 2Y29.03%
EPS Next 3Y26.26%
5. Dividend
5.1 Amount
1NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1NFLX (12/12/2025, 7:00:00 PM)
81.06
+0.98 (+1.22%)
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 Cap344.45B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target117.14 (44.51%)
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)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)-90.07%
PT rev (3m)-89.89%
EPS NQ rev (1m)-90.01%
EPS NQ rev (3m)-89.9%
EPS NY rev (1m)-90%
EPS NY rev (3m)-90.28%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.74 | ||
| Fwd PE | 28.76 | ||
| P/S | 9.3 | ||
| P/FCF | 45 | ||
| P/OCF | 42.14 | ||
| P/B | 15.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)2.04
EY2.52%
EPS(NY)2.82
Fwd EY3.48%
FCF(TTM)1.8
FCFY2.22%
OCF(TTM)1.92
OCFY2.37%
SpS8.71
BVpS5.21
TBVpS-1.34
PEG (NY)1.28
PEG (5Y)1.08
Graham Number15.47
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 | 10.89 |
F-Score8
WACC8.62%
ROIC/WACC2.83
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 Y30.97%
EPS Next 2Y29.03%
EPS Next 3Y26.26%
EPS Next 5Y22.16%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.91%
Revenue Next 2Y14.42%
Revenue Next 3Y13.34%
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 30.97% in the next year.