NETFLIX INC (NFLX) Stock Fundamental Analysis
NASDAQ:NFLX • US64110L1061
84.59 USD
+1.89 (+2.29%)
At close: Feb 26, 2026
91.15 USD
+6.56 (+7.76%)
Pre-Market: 2/27/2026, 7:03:04 AM
We assign a fundamental rating of 7 out of 10 to NFLX. NFLX was compared to 80 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making NFLX a very profitable company, without any liquidiy or solvency issues. NFLX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes NFLX very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year NFLX was profitable.
- In the past year NFLX had a positive cash flow from operations.
- In the past 5 years NFLX has always been profitable.
- In the past 5 years NFLX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.75%, NFLX belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- NFLX has a better Return On Equity (41.26%) than 98.75% of its industry peers.
- NFLX has a better Return On Invested Capital (25.95%) than 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NFLX is significantly above the industry average of 7.68%.
- The last Return On Invested Capital (25.95%) for NFLX is above the 3 year average (20.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.75% | ||
| ROE | 41.26% | ||
| ROIC | 25.95% |
ROA(3y)15.7%
ROA(5y)13.56%
ROE(3y)34.24%
ROE(5y)31.33%
ROIC(3y)20.73%
ROIC(5y)17.83%
1.3 Margins
- NFLX has a better Profit Margin (24.30%) than 93.75% of its industry peers.
- In the last couple of years the Profit Margin of NFLX has grown nicely.
- NFLX has a better Operating Margin (29.49%) than 97.50% of its industry peers.
- In the last couple of years the Operating Margin of NFLX has grown nicely.
- NFLX's Gross Margin of 48.49% is in line compared to the rest of the industry. NFLX outperforms 57.50% of its industry peers.
- In the last couple of years the Gross Margin of NFLX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.49% | ||
| PM (TTM) | 24.3% | ||
| GM | 48.49% |
OM growth 3Y18.3%
OM growth 5Y5.33%
PM growth 3Y19.6%
PM growth 5Y17.08%
GM growth 3Y7.19%
GM growth 5Y2.29%
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.
- NFLX has a better debt/assets ratio than last year.
2.2 Solvency
- NFLX has an Altman-Z score of 10.11. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 10.11, NFLX belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
- The Debt to FCF ratio of NFLX is 1.53, which is an excellent value as it means it would take NFLX, only 1.53 years of fcf income to pay off all of its debts.
- NFLX's Debt to FCF ratio of 1.53 is amongst the best of the industry. NFLX outperforms 82.50% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
- NFLX has a Debt to Equity ratio (0.51) which is in line with its industry peers.
- Although NFLX 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 10.11 |
ROIC/WACC2.56
WACC10.14%
2.3 Liquidity
- NFLX has a Current Ratio of 1.19. 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 (1.19) which is in line with its industry peers.
- A Quick Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
- The Quick ratio of NFLX (1.19) is comparable to the rest of the industry.
- NFLX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.43%, which is quite impressive.
- NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.92% yearly.
- NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.85%.
- The Revenue has been growing by 12.57% on average over the past years. This is quite good.
EPS 1Y (TTM)27.43%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%31.15%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
3.2 Future
- NFLX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.67% yearly.
- NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.66% yearly.
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y18.67%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.66%
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
- A Price/Earnings ratio of 33.43 indicates a quite expensive valuation of NFLX.
- 78.75% of the companies in the same industry are more expensive than NFLX, based on the Price/Earnings ratio.
- NFLX is valuated rather expensively when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 26.42, the valuation of NFLX can be described as expensive.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than 75.00% of the companies in the same industry.
- NFLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 26.42 |
4.2 Price Multiples
- NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.75 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- NFLX has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as NFLX's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)1.25
PEG (5Y)1.02
EPS Next 2Y24.07%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
84.59
+1.89 (+2.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20 2026-01-20/amc
Earnings (Next)04-15 2026-04-15/amc
Inst Owners79.69%
Inst Owner Change751.85%
Ins Owners0.02%
Ins Owner Change12.24%
Market Cap357.15B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.23
Price Target115.46 (36.49%)
Short Float %1.81%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-8.95%
Min EPS beat(2)-17.39%
Max EPS beat(2)-0.51%
EPS beat(4)1
Avg EPS beat(4)-1.21%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.44%
EPS beat(8)4
Avg EPS beat(8)1.71%
EPS beat(12)6
Avg EPS beat(12)1.94%
EPS beat(16)9
Avg EPS beat(16)1.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.29%
Revenue beat(8)0
Avg Revenue beat(8)-1.43%
Revenue beat(12)0
Avg Revenue beat(12)-1.62%
Revenue beat(16)0
Avg Revenue beat(16)-1.73%
PT rev (1m)-11.19%
PT rev (3m)-91.63%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-3.07%
EPS NY rev (3m)-3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 26.42 | ||
| P/S | 7.9 | ||
| P/FCF | 37.75 | ||
| P/OCF | 35.19 | ||
| P/B | 13.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.05 |
EPS(TTM)2.53
EY2.99%
EPS(NY)3.2
Fwd EY3.78%
FCF(TTM)2.24
FCFY2.65%
OCF(TTM)2.4
OCFY2.84%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.25
PEG (5Y)1.02
Graham Number18.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.75% | ||
| ROE | 41.26% | ||
| ROCE | 29.87% | ||
| ROIC | 25.95% | ||
| ROICexc | 32.56% | ||
| ROICexgc | 417.11% | ||
| OM | 29.49% | ||
| PM (TTM) | 24.3% | ||
| GM | 48.49% | ||
| FCFM | 20.94% |
ROA(3y)15.7%
ROA(5y)13.56%
ROE(3y)34.24%
ROE(5y)31.33%
ROIC(3y)20.73%
ROIC(5y)17.83%
ROICexc(3y)26.07%
ROICexc(5y)22.05%
ROICexgc(3y)685.89%
ROICexgc(5y)N/A
ROCE(3y)23.87%
ROCE(5y)20.52%
ROICexgc growth 3Y16.79%
ROICexgc growth 5YN/A
ROICexc growth 3Y32.05%
ROICexc growth 5Y8.93%
OM growth 3Y18.3%
OM growth 5Y5.33%
PM growth 3Y19.6%
PM growth 5Y17.08%
GM growth 3Y7.19%
GM growth 5Y2.29%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 4.11% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 10.11 |
F-Score7
WACC10.14%
ROIC/WACC2.56
Cap/Depr(3y)3.1%
Cap/Depr(5y)3.27%
Cap/Sales(3y)1.23%
Cap/Sales(5y)1.35%
Profit Quality(3y)97.89%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.43%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%31.15%
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y18.67%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.66%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year27.15%
EBIT Next 3Y20.8%
EBIT Next 5Y18.54%
FCF growth 1Y36.68%
FCF growth 3Y80.14%
FCF growth 5Y37.44%
OCF growth 1Y37.87%
OCF growth 3Y71.1%
OCF growth 5Y33.13%
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 of NETFLIX INC (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.
How financially healthy is NETFLIX INC?
The financial health rating of NETFLIX INC (NFLX) is 9 / 10.
What is the expected EPS growth for NETFLIX INC (NFLX) stock?
The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 26.69% in the next year.