104.66 USD
+0.35 (+0.34%)
NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. NFLX is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NFLX a good candidate for 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.
Each year in the past 5 years NFLX had a positive operating cash flow.
1.2 Ratios
NFLX has a better Return On Assets (18.99%) than 93.75% of its industry peers.
NFLX has a better Return On Equity (40.19%) than 95.00% of its industry peers.
NFLX has a better Return On Invested Capital (24.41%) than 98.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NFLX is significantly above the industry average of 9.30%.
The 3 year average ROIC (16.17%) for NFLX 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
NFLX has a Profit Margin of 24.05%. This is amongst the best in the industry. NFLX outperforms 95.00% of its industry peers.
NFLX's Profit Margin has improved in the last couple of years.
NFLX has a Operating Margin of 29.14%. This is amongst the best in the industry. NFLX outperforms 97.50% of its industry peers.
NFLX's Operating Margin has improved in the last couple of years.
NFLX's Gross Margin of 48.09% is in line compared to the rest of the industry. NFLX outperforms 58.75% of its industry peers.
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
NFLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, NFLX has less shares outstanding
The number of shares outstanding for NFLX has been reduced compared to 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 3.55. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.55, NFLX is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
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.
NFLX has a better Debt to FCF ratio (1.61) than 78.75% of its industry peers.
NFLX has a Debt/Equity ratio of 0.56. This is a neutral value indicating NFLX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, NFLX perfoms like the industry average, outperforming 47.50% of the companies in the same 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 | 3.55 |
ROIC/WACC3.16
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX has a Current ratio of 1.33. This is in the better half of the industry: NFLX outperforms 61.25% of its industry peers.
NFLX has a Quick 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's Quick ratio of 1.33 is fine compared to the rest of the industry. NFLX outperforms 63.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.86% yearly.
Looking at the last year, NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.41% in the last year.
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
The Revenue is expected to grow by 11.77% on average over the next years. This is quite good.
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
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 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 43.79, which means the current valuation is very expensive for NFLX.
Compared to the rest of the industry, the Price/Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 73.75% of the companies listed in the same industry.
NFLX is valuated expensively when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 31.70, the valuation of NFLX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 71.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. NFLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.79 | ||
| Fwd PE | 31.7 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than NFLX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NFLX indicates a rather cheap valuation: NFLX is cheaper than 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 1.72 |
4.3 Compensation for Growth
NFLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of NFLX may justify a higher PE ratio.
NFLX's earnings are expected to grow with 25.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)1.19
EPS Next 2Y29.04%
EPS Next 3Y25.74%
5. Dividend
5.1 Amount
No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NFLX (11/24/2025, 3:11:09 PM)
104.66
+0.35 (+0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change-0.46%
Ins Owners0.03%
Ins Owner Change-0.1%
Market Cap44.47B
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)0.93%
EPS NQ rev (1m)-89.92%
EPS NQ rev (3m)-89.9%
EPS NY rev (1m)-90.33%
EPS NY rev (3m)-90.29%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.79 | ||
| Fwd PE | 31.7 | ||
| P/S | 1.03 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.64 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.72 |
EPS(TTM)2.39
EY2.28%
EPS(NY)3.3
Fwd EY3.15%
FCF(TTM)21.1
FCFY20.16%
OCF(TTM)22.53
OCFY21.53%
SpS102.08
BVpS61.08
TBVpS-15.73
PEG (NY)1.42
PEG (5Y)1.19
Graham Number57.31
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 | 3.55 |
F-Score8
WACC7.73%
ROIC/WACC3.16
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 7 / 10 to NFLX.
What is the valuation status for NFLX stock?
ChartMill assigns a valuation rating of 5 / 10 to NETFLIX INC (NFLX). This can be considered as Fairly Valued.
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 43.79 and the Price/Book (PB) ratio is 1.71.