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NETFLIX INC (1NFLX.MI) Stock Fundamental Analysis

BIT:1NFLX - Borsa Italiana Milan - US64110L1061 - Common Stock - Currency: EUR

952.7  +4.6 (+0.49%)

Fundamental Rating

7

Taking everything into account, 1NFLX scores 7 out of 10 in our fundamental rating. 1NFLX was compared to 44 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 overvalued while it is showing excellent growth. This is an interesting combination. This makes 1NFLX very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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9

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.
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.
1NFLX.MI Yearly Net Income VS EBIT VS OCF VS FCF1NFLX.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B 10B

1.2 Ratios

1NFLX has a better Return On Assets (16.24%) than 100.00% of its industry peers.
1NFLX has a Return On Equity of 35.21%. This is amongst the best in the industry. 1NFLX outperforms 92.50% of its industry peers.
The Return On Invested Capital of 1NFLX (16.41%) is better than 95.00% of its industry peers.
1NFLX had an Average Return On Invested Capital over the past 3 years of 14.57%. This is significantly above the industry average of 8.82%.
The last Return On Invested Capital (16.41%) for 1NFLX is above the 3 year average (14.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 16.24%
ROE 35.21%
ROIC 16.41%
ROA(3y)12.2%
ROA(5y)11.02%
ROE(3y)27.7%
ROE(5y)28.07%
ROIC(3y)14.57%
ROIC(5y)14.89%
1NFLX.MI Yearly ROA, ROE, ROIC1NFLX.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

1NFLX has a better Profit Margin (22.34%) than 97.50% of its industry peers.
In the last couple of years the Profit Margin of 1NFLX has grown nicely.
With an excellent Operating Margin value of 26.71%, 1NFLX belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
1NFLX's Operating Margin has improved in the last couple of years.
1NFLX has a Gross Margin of 46.06%. This is in the lower half of the industry: 1NFLX underperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of 1NFLX has grown nicely.
Industry RankSector Rank
OM 26.71%
PM (TTM) 22.34%
GM 46.06%
OM growth 3Y8.59%
OM growth 5Y15.63%
PM growth 3Y9.04%
PM growth 5Y19.25%
GM growth 3Y3.42%
GM growth 5Y3.77%
1NFLX.MI Yearly Profit, Operating, Gross Margins1NFLX.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1NFLX 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.
1NFLX.MI Yearly Shares Outstanding1NFLX.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
1NFLX.MI Yearly Total Debt VS Total Assets1NFLX.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

2.2 Solvency

An Altman-Z score of 11.22 indicates that 1NFLX is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1NFLX (11.22) is better than 92.50% of its industry peers.
1NFLX has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as 1NFLX would need 2.25 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.25, 1NFLX belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
A Debt/Equity ratio of 0.63 indicates that 1NFLX is somewhat dependend on debt financing.
1NFLX has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: 1NFLX outperforms 55.00% of its industry peers.
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 RankSector Rank
Debt/Equity 0.63
Debt/FCF 2.25
Altman-Z 11.22
ROIC/WACC1.82
WACC9.01%
1NFLX.MI Yearly LT Debt VS Equity VS FCF1NFLX.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

2.3 Liquidity

The current and quick ratio evaluation for 1NFLX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
1NFLX.MI Yearly Current Assets VS Current Liabilites1NFLX.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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7

3. Growth

3.1 Past

1NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.11%, which is quite impressive.
The Earnings Per Share has been growing by 36.86% on average over the past years. This is a very strong growth
1NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.65%.
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)65.11%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%102.37%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%16%

3.2 Future

The Earnings Per Share is expected to grow by 18.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.85% on average over the next years. This is quite good.
EPS Next Y27.3%
EPS Next 2Y24.77%
EPS Next 3Y22.91%
EPS Next 5Y18.3%
Revenue Next Year12.25%
Revenue Next 2Y11.77%
Revenue Next 3Y10.91%
Revenue Next 5Y10.85%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
1NFLX.MI Yearly Revenue VS Estimates1NFLX.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
1NFLX.MI Yearly EPS VS Estimates1NFLX.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 49.65, 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 62.50% of the companies in the same industry.
1NFLX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
The Price/Forward Earnings ratio is 39.01, which means the current valuation is very expensive for 1NFLX.
The rest of the industry has a similar Price/Forward Earnings ratio as 1NFLX.
1NFLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
Industry RankSector Rank
PE 49.65
Fwd PE 39.01
1NFLX.MI Price Earnings VS Forward Price Earnings1NFLX.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

1NFLX's Enterprise Value to EBITDA is on the same level as the industry average.
1NFLX's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 60.81
EV/EBITDA 16.25
1NFLX.MI Per share data1NFLX.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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 22.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.82
PEG (5Y)1.35
EPS Next 2Y24.77%
EPS Next 3Y22.91%

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0

5. Dividend

5.1 Amount

No dividends for 1NFLX!.
Industry RankSector Rank
Dividend Yield N/A

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NETFLIX INC

BIT:1NFLX (2/3/2025, 7:00:00 PM)

952.7

+4.6 (+0.49%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-21 2025-01-21/amc
Earnings (Next)N/A N/A
Inst Owners85.66%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap407.24B
Analysts77.09
Price Target1034.78 (8.62%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)1.61%
Min EPS beat(2)-0.27%
Max EPS beat(2)3.48%
EPS beat(4)3
Avg EPS beat(4)4.64%
Min EPS beat(4)-0.27%
Max EPS beat(4)14.46%
EPS beat(8)5
Avg EPS beat(8)3.52%
EPS beat(12)8
Avg EPS beat(12)1.96%
EPS beat(16)11
Avg EPS beat(16)7.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.58%
Revenue beat(12)0
Avg Revenue beat(12)-1.74%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)26.65%
PT rev (3m)46.02%
EPS NQ rev (1m)-5.68%
EPS NQ rev (3m)4.86%
EPS NY rev (1m)3.96%
EPS NY rev (3m)7.53%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 49.65
Fwd PE 39.01
P/S 10.79
P/FCF 60.81
P/OCF 57.17
P/B 17.01
P/tB 17.01
EV/EBITDA 16.25
EPS(TTM)19.19
EY2.01%
EPS(NY)24.43
Fwd EY2.56%
FCF(TTM)15.67
FCFY1.64%
OCF(TTM)16.66
OCFY1.75%
SpS88.28
BVpS56.01
TBVpS56.01
PEG (NY)1.82
PEG (5Y)1.35
Profitability
Industry RankSector Rank
ROA 16.24%
ROE 35.21%
ROCE 19.42%
ROIC 16.41%
ROICexc 19.84%
ROICexgc 19.84%
OM 26.71%
PM (TTM) 22.34%
GM 46.06%
FCFM 17.75%
ROA(3y)12.2%
ROA(5y)11.02%
ROE(3y)27.7%
ROE(5y)28.07%
ROIC(3y)14.57%
ROIC(5y)14.89%
ROICexc(3y)17.53%
ROICexc(5y)18.38%
ROICexgc(3y)282.45%
ROICexgc(5y)N/A
ROCE(3y)16.91%
ROCE(5y)17.19%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y3.33%
ROICexc growth 5Y14.04%
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 Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.63
Debt/FCF 2.25
Debt/EBITDA 0.6
Cap/Depr 2.81%
Cap/Sales 1.13%
Interest Coverage 250
Cash Conversion 28.26%
Profit Quality 79.46%
Current Ratio N/A
Quick Ratio N/A
Altman-Z 11.22
F-Score8
WACC9.01%
ROIC/WACC1.82
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)65.11%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%102.37%
EPS Next Y27.3%
EPS Next 2Y24.77%
EPS Next 3Y22.91%
EPS Next 5Y18.3%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%16%
Revenue Next Year12.25%
Revenue Next 2Y11.77%
Revenue Next 3Y10.91%
Revenue Next 5Y10.85%
EBIT growth 1Y49.81%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year25.86%
EBIT Next 3Y19.71%
EBIT Next 5Y18.35%
FCF growth 1Y-0.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.2%
OCF growth 3Y165.66%
OCF growth 5YN/A