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NETFLIX INC (NFC.DE) Stock Fundamental Analysis

FRA:NFC - Deutsche Boerse Ag - US64110L1061 - Common Stock - Currency: EUR

951.9  -8.1 (-0.84%)

Fundamental Rating

7

NFC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 44 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 valued quite expensively, but it does show have an excellent growth rating. This makes NFC very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

NFC had positive earnings in the past year.
NFC had a positive operating cash flow in the past year.
In the past 5 years NFC has always been profitable.
NFC had a positive operating cash flow in each of the past 5 years.
NFC.DE Yearly Net Income VS EBIT VS OCF VS FCFNFC.DE 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

The Return On Assets of NFC (16.24%) is better than 97.50% of its industry peers.
Looking at the Return On Equity, with a value of 35.21%, NFC belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.41%, NFC belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NFC is significantly above the industry average of 8.82%.
The 3 year average ROIC (14.57%) for NFC is below the current ROIC(16.41%), indicating increased profibility in the last year.
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%
NFC.DE Yearly ROA, ROE, ROICNFC.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

With an excellent Profit Margin value of 22.34%, NFC belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
NFC's Profit Margin has improved in the last couple of years.
NFC has a better Operating Margin (26.71%) than 95.00% of its industry peers.
NFC's Operating Margin has improved in the last couple of years.
The Gross Margin of NFC (46.06%) is worse than 62.50% of its industry peers.
NFC's Gross Margin has improved in the last couple of years.
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%
NFC.DE Yearly Profit, Operating, Gross MarginsNFC.DE 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

NFC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NFC has been reduced compared to 1 year ago.
NFC has less shares outstanding than it did 5 years ago.
NFC has a better debt/assets ratio than last year.
NFC.DE Yearly Shares OutstandingNFC.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
NFC.DE Yearly Total Debt VS Total AssetsNFC.DE 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 11.29 indicates that NFC is not in any danger for bankruptcy at the moment.
NFC has a better Altman-Z score (11.29) than 95.00% of its industry peers.
NFC has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as NFC would need 2.25 years to pay back of all of its debts.
NFC's Debt to FCF ratio of 2.25 is fine compared to the rest of the industry. NFC outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that NFC is somewhat dependend on debt financing.
The Debt to Equity ratio of NFC (0.63) is comparable to the rest of the industry.
Although NFC 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 RankSector Rank
Debt/Equity 0.63
Debt/FCF 2.25
Altman-Z 11.29
ROIC/WACC1.82
WACC9.01%
NFC.DE Yearly LT Debt VS Equity VS FCFNFC.DE 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 NFC 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
NFC.DE Yearly Current Assets VS Current LiabilitesNFC.DE 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

NFC 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
The Revenue has grown by 15.65% 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)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.
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 Y27.3%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
NFC.DE Yearly Revenue VS EstimatesNFC.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B
NFC.DE Yearly EPS VS EstimatesNFC.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 49.60, the valuation of NFC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as NFC.
NFC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
With a Price/Forward Earnings ratio of 38.97, NFC can be considered very expensive at the moment.
NFC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, NFC is valued rather cheaply.
Industry RankSector Rank
PE 49.6
Fwd PE 38.97
NFC.DE Price Earnings VS Forward Price EarningsNFC.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

60.00% of the companies in the same industry are cheaper than NFC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NFC is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 60.75
EV/EBITDA 16.38
NFC.DE Per share dataNFC.DE 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.
The excellent profitability rating of NFC may justify a higher PE ratio.
A more expensive valuation may be justified as NFC's earnings are expected to grow with 22.91% in the coming years.
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 NFC!.
Industry RankSector Rank
Dividend Yield N/A

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NETFLIX INC

FRA:NFC (2/5/2025, 11:33:58 AM)

951.9

-8.1 (-0.84%)

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 Cap406.90B
Analysts77.09
Price Target1031.54 (8.37%)
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)25.85%
PT rev (3m)45.6%
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 49.6
Fwd PE 38.97
P/S 10.78
P/FCF 60.75
P/OCF 57.13
P/B 17
P/tB 17
EV/EBITDA 16.38
EPS(TTM)19.19
EY2.02%
EPS(NY)24.43
Fwd EY2.57%
FCF(TTM)15.67
FCFY1.65%
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 11.29
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