NETFLIX INC (NFLX) Stock Fundamental Analysis
NASDAQ:NFLX • US64110L1061
84.59 USD
+1.89 (+2.29%)
At close: Feb 26, 2026
91.79 USD
+7.2 (+8.51%)
After Hours: 2/26/2026, 8:00:02 PM
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! These ratings would make NFLX suitable 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.
- 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's Return On Assets of 19.75% is amongst the best of the industry. NFLX outperforms 93.75% of its industry peers.
- NFLX has a Return On Equity of 41.26%. This is amongst the best in the industry. NFLX outperforms 98.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 25.95%, NFLX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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
- With an excellent Profit Margin value of 24.30%, NFLX belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- NFLX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 29.49%, NFLX belongs to the top 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.
- NFLX has a Gross Margin of 48.49%. This is comparable to the rest of the industry: NFLX outperforms 57.50% of its industry peers.
- NFLX's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NFLX 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.
- Compared to 1 year ago, NFLX has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.94 indicates that NFLX is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 9.94, NFLX belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
- NFLX has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
- The Debt to FCF ratio of NFLX (1.53) is better than 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 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 | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 9.94 |
ROIC/WACC2.56
WACC10.13%
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.
- Looking at the Current ratio, with a value of 1.19, NFLX is in line with its industry, outperforming 55.00% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
- NFLX has a Quick ratio of 1.19. This is comparable to the rest of the industry: NFLX outperforms 57.50% of its industry peers.
- The current and quick ratio evaluation for NFLX 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 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.
- Looking at the last year, NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.85% in the last year.
- Measured over the past years, NFLX shows a quite strong growth in Revenue. The Revenue has been growing by 12.57% on average per year.
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
- The Earnings Per Share is expected to grow by 18.67% on average over the next years. This is quite good.
- 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
- NFLX is valuated quite expensively with a Price/Earnings ratio of 33.43.
- Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than 80.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, NFLX is valued a bit more expensive.
- A Price/Forward Earnings ratio of 26.42 indicates a quite expensive valuation of NFLX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 75.00% of the companies listed 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
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- NFLX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.75 | ||
| 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.
- NFLX has an outstanding profitability rating, which may justify a higher PE ratio.
- NFLX's earnings are expected to grow with 21.94% in the coming years. This may justify a more expensive valuation.
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 | 11.79 |
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 | 9.94 |
F-Score7
WACC10.13%
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.