104.31 USD
-1.36 (-1.29%)
104.45 USD
+0.14 (+0.13%)
We assign a fundamental rating of 8 out of 10 to NFLX. NFLX was compared to 79 industry peers in the Entertainment industry. NFLX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NFLX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes NFLX very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
NFLX had positive earnings in the past year.
In the past year NFLX had a positive cash flow from operations.
NFLX had positive earnings in each of the past 5 years.
NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NFLX has a Return On Assets of 18.99%. This is amongst the best in the industry. NFLX outperforms 93.67% of its industry peers.
NFLX has a Return On Equity of 40.19%. This is amongst the best in the industry. NFLX outperforms 94.94% of its industry peers.
NFLX has a Return On Invested Capital of 24.41%. This is amongst the best in the industry. NFLX outperforms 98.73% of its industry peers.
NFLX had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 9.82%.
The last Return On Invested Capital (24.41%) for NFLX is above the 3 year average (16.17%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 24.05%, NFLX belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
In the last couple of years the Profit Margin of NFLX has grown nicely.
NFLX's Operating Margin of 29.14% is amongst the best of the industry. NFLX outperforms 97.47% of its industry peers.
In the last couple of years the Operating Margin of NFLX has grown nicely.
The Gross Margin of NFLX (48.09%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of NFLX has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NFLX is creating value.
NFLX has less shares outstanding than it did 1 year ago.
NFLX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
NFLX has an Altman-Z score of 3.57. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
NFLX's Altman-Z score of 3.57 is fine compared to the rest of the industry. NFLX outperforms 79.75% of its industry peers.
NFLX 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.
The Debt to FCF ratio of NFLX (1.61) is better than 78.48% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NFLX is somewhat dependend on debt financing.
The Debt to Equity ratio of NFLX (0.56) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for NFLX, 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 | 1.61 | ||
| Altman-Z | 3.57 |
ROIC/WACC3.26
WACC7.49%
2.3 Liquidity
NFLX has a Current Ratio of 1.33. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting its short term obligations.
NFLX has a Current ratio of 1.33. This is in the better half of the industry: NFLX outperforms 60.76% of its industry peers.
A Quick Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX has a Quick ratio of 1.33. This is in the better half of the industry: NFLX outperforms 63.29% 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.
The Earnings Per Share has been growing by 36.86% on average over the past years. This is a very strong growth
NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.41%.
NFLX 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
The Earnings Per Share is expected to grow by 22.82% on average over the next years. This is a very strong growth
NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.77% yearly.
EPS Next Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
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
The Price/Earnings ratio is 4.36, which indicates a rather cheap valuation of NFLX.
NFLX's Price/Earnings ratio is rather cheap when compared to the industry. NFLX is cheaper than 94.94% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, NFLX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.16, the valuation of NFLX can be described as very cheap.
Based on the Price/Forward Earnings ratio, NFLX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
NFLX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 3.16 |
4.2 Price Multiples
NFLX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NFLX is cheaper than 93.67% of the companies in the same industry.
NFLX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NFLX is cheaper than 94.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.94 | ||
| EV/EBITDA | 1.74 |
4.3 Compensation for Growth
NFLX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NFLX may justify a higher PE ratio.
A more expensive valuation may be justified as NFLX's earnings are expected to grow with 25.74% in the coming years.
PEG (NY)0.14
PEG (5Y)0.12
EPS Next 2Y29.04%
EPS Next 3Y25.74%
5. Dividend
5.1 Amount
NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
104.31
-1.36 (-1.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change-0.49%
Ins Owners0.03%
Ins Owner Change-0.5%
Market Cap44.32B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price TargetN/A
Short Float %N/A
Short Ratio1.54
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)0.03%
PT rev (3m)1.37%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)-2.94%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.36 | ||
| Fwd PE | 3.16 | ||
| P/S | 1.02 | ||
| P/FCF | 4.94 | ||
| P/OCF | 4.63 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.74 |
EPS(TTM)23.94
EY22.95%
EPS(NY)33.02
Fwd EY31.66%
FCF(TTM)21.1
FCFY20.23%
OCF(TTM)22.53
OCFY21.6%
SpS102.08
BVpS61.08
TBVpS-15.73
PEG (NY)0.14
PEG (5Y)0.12
Graham Number181.38
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 | 3.57 |
F-Score8
WACC7.49%
ROIC/WACC3.26
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 Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
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 / NFLX FAQ
What is the ChartMill fundamental rating of NETFLIX INC (NFLX) stock?
ChartMill assigns a fundamental rating of 8 / 10 to NFLX.
What is the valuation status for NFLX stock?
ChartMill assigns a valuation rating of 10 / 10 to NETFLIX INC (NFLX). This can be considered as Undervalued.
What is the profitability of NFLX stock?
NETFLIX INC (NFLX) has a profitability rating of 9 / 10.
What are the PE and PB ratios of NETFLIX INC (NFLX) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 4.36 and the Price/Book (PB) ratio is 1.71.