NETFLIX INC (NFC.DE) Stock Fundamental Analysis
FRA:NFC - Deutsche Boerse Ag - US64110L1061 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to NFC. NFC was compared to 46 industry peers in the Entertainment industry. NFC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NFC is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make NFC suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NFC was profitable.
NFC had a positive operating cash flow in the past year.
In the past 5 years NFC has always been profitable.
In the past 5 years NFC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NFC (16.24%) is better than 100.00% of its industry peers.
The Return On Equity of NFC (35.21%) is better than 93.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.21%, NFC belongs to the top 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 NFC is significantly above the industry average of 8.15%.
The last Return On Invested Capital (21.21%) for NFC is above the 3 year average (16.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 35.21% | ||
| ROIC | 21.21% |
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
NFC has a Profit Margin of 22.34%. This is amongst the best in the industry. NFC outperforms 97.83% of its industry peers.
In the last couple of years the Profit Margin of NFC has grown nicely.
NFC has a Operating Margin of 26.71%. This is amongst the best in the industry. NFC outperforms 95.65% of its industry peers.
In the last couple of years the Operating Margin of NFC has grown nicely.
NFC has a Gross Margin of 46.06%. This is comparable to the rest of the industry: NFC outperforms 45.65% of its industry peers.
In the last couple of years the Gross Margin of NFC has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NFC is creating value.
NFC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NFC has been reduced compared to 5 years ago.
Compared to 1 year ago, NFC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.93 indicates that NFC is not in any danger for bankruptcy at the moment.
NFC's Altman-Z score of 9.93 is amongst the best of the industry. NFC outperforms 91.30% of its industry peers.
The Debt to FCF ratio of NFC is 2.25, which is a good value as it means it would take NFC, 2.25 years of fcf income to pay off all of its debts.
NFC's Debt to FCF ratio of 2.25 is amongst the best of the industry. NFC outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NFC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, NFC perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for NFC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 9.93 |
ROIC/WACC2.42
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.22 indicates that NFC should not have too much problems paying its short term obligations.
NFC has a Current ratio of 1.22. This is in the better half of the industry: NFC outperforms 69.57% of its industry peers.
NFC has a Quick Ratio of 1.22. This is a normal value and indicates that NFC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NFC (1.22) is better than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.11% over the past year.
Measured over the past years, NFC 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, NFC shows a quite strong growth in Revenue. The Revenue has grown by 15.65% in the last year.
NFC 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
Based on estimates for the next years, NFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.30% on average per year.
NFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.85% yearly.
EPS Next Y27.36%
EPS Next 2Y24.9%
EPS Next 3Y23%
EPS Next 5Y18.3%
Revenue Next Year13.93%
Revenue Next 2Y12.95%
Revenue Next 3Y12.25%
Revenue Next 5Y10.85%
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
A Price/Earnings ratio of 43.69 indicates a quite expensive valuation of NFC.
Based on the Price/Earnings ratio, NFC is valued a bit cheaper than 69.57% of the companies in the same industry.
NFC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 34.29, which means the current valuation is very expensive for NFC.
Based on the Price/Forward Earnings ratio, NFC is valued a bit cheaper than 60.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NFC to the average of the S&P500 Index (22.10), we can say NFC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.69 | ||
| Fwd PE | 34.29 |
4.2 Price Multiples
NFC's Enterprise Value to EBITDA is on the same level as the industry average.
NFC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.52 | ||
| EV/EBITDA | 14.38 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NFC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NFC's earnings are expected to grow with 23.00% in the coming years.
PEG (NY)1.6
PEG (5Y)1.19
EPS Next 2Y24.9%
EPS Next 3Y23%
5. Dividend
5.1 Amount
NFC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:NFC (3/7/2025, 7:00:00 PM)
797.7
-89.6 (-10.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.17%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap341.22B
Analysts80.38
Price Target1038.99 (30.25%)
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)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)0.72%
PT rev (3m)35.18%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-5.75%
EPS NY rev (1m)0.05%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.69 | ||
| Fwd PE | 34.29 | ||
| P/S | 9.5 | ||
| P/FCF | 53.52 | ||
| P/OCF | 50.33 | ||
| P/B | 14.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)18.26
EY2.29%
EPS(NY)23.26
Fwd EY2.92%
FCF(TTM)14.9
FCFY1.87%
OCF(TTM)15.85
OCFY1.99%
SpS83.98
BVpS53.28
TBVpS-16.6
PEG (NY)1.6
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 35.21% | ||
| ROCE | 24.3% | ||
| ROIC | 21.21% | ||
| ROICexc | 27.31% | ||
| ROICexgc | 1084.06% | ||
| 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)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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.25 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 2.81% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 15.44 | ||
| Cash Conversion | 28.26% | ||
| Profit Quality | 79.46% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 9.93 |
F-Score8
WACC8.76%
ROIC/WACC2.42
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 Y27.36%
EPS Next 2Y24.9%
EPS Next 3Y23%
EPS Next 5Y18.3%
Revenue 1Y (TTM)15.65%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%16%
Revenue Next Year13.93%
Revenue Next 2Y12.95%
Revenue Next 3Y12.25%
Revenue Next 5Y10.85%
EBIT growth 1Y49.81%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year30.31%
EBIT Next 3Y22.08%
EBIT Next 5Y18.36%
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