80.02 USD
-2.19 (-2.66%)
Last: Feb 11, 2026, 03:23 PM
NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. NFLX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NFLX is growing strongly while it is still valued neutral. This is a good combination! These ratings would make NFLX suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- NFLX had positive earnings in the past year.
- NFLX had a positive operating cash flow in the past year.
- Each year in the past 5 years NFLX has been profitable.
- Each year in the past 5 years NFLX had a positive operating cash flow.
1.2 Ratios
- NFLX has a Return On Assets of 19.75%. This is amongst the best in the industry. NFLX outperforms 93.75% of its industry peers.
- Looking at the Return On Equity, with a value of 41.26%, NFLX belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- NFLX's Return On Invested Capital of 25.95% is amongst the best of the industry. NFLX outperforms 98.75% of its industry peers.
- NFLX had an Average Return On Invested Capital over the past 3 years of 20.73%. This is significantly above the industry average of 8.74%.
- The 3 year average ROIC (20.73%) for NFLX is below the current ROIC(25.95%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 24.30%, NFLX belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- NFLX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 29.49%, NFLX belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of NFLX has grown nicely.
- Looking at the Gross Margin, with a value of 48.49%, NFLX is in line with its industry, outperforming 57.50% of the companies in the same industry.
- 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.
- The number of shares outstanding for NFLX has been increased compared to 1 year ago.
- Compared to 5 years ago, NFLX has more shares outstanding
- The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
- NFLX has an Altman-Z score of 9.94. 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 9.94, NFLX belongs to the top 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.
- Looking at the Debt to FCF ratio, with a value of 1.53, NFLX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
- NFLX's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. NFLX outperforms 48.75% of its industry peers.
- 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 | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 9.94 |
ROIC/WACC2.66
WACC9.74%
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.
- With a Current ratio value of 1.19, NFLX perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- NFLX has a Quick 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 Quick ratio (1.19) which is in line with its industry peers.
- 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.
- The Revenue has grown by 15.85% in the past year. This is quite good.
- NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
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
- Based on estimates for the next years, NFLX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.08% on average per year.
- Based on estimates for the next years, NFLX will show a quite strong growth in Revenue. The Revenue will grow by 10.32% on average per year.
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y20.08%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.32%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 31.63, the valuation of NFLX can be described as expensive.
- Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of NFLX to the average of the S&P500 Index (28.03), we can say NFLX is valued inline with the index average.
- A Price/Forward Earnings ratio of 25.00 indicates a rather expensive valuation of NFLX.
- NFLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 27.97. NFLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than the industry average as 73.75% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.94 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
- The 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.
- A more expensive valuation may be justified as NFLX's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)1.19
PEG (5Y)0.96
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% |
NASDAQ:NFLX (2/11/2026, 3:23:09 PM)
80.02
-2.19 (-2.66%)
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 Change190.71%
Ins Owners0.02%
Ins Owner Change15.03%
Market Cap340.03B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.61
Price Target115.46 (44.29%)
Short Float %1.66%
Short Ratio1.49
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)-11.83%
PT rev (3m)-91.63%
EPS NQ rev (1m)-6.07%
EPS NQ rev (3m)-90.62%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-90.3%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 25 | ||
| P/S | 7.53 | ||
| P/FCF | 35.94 | ||
| P/OCF | 33.5 | ||
| P/B | 12.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.79 |
EPS(TTM)2.53
EY3.16%
EPS(NY)3.2
Fwd EY4%
FCF(TTM)2.23
FCFY2.78%
OCF(TTM)2.39
OCFY2.98%
SpS10.63
BVpS6.26
TBVpS-1.45
PEG (NY)1.19
PEG (5Y)0.96
Graham Number18.88
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 | 9.94 |
F-Score7
WACC9.74%
ROIC/WACC2.66
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 5Y20.08%
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 5Y10.32%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year27.15%
EBIT Next 3Y20.8%
EBIT Next 5Y18.03%
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 8 / 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.