NETFLIX INC (NFLX) Fundamental Analysis & Valuation

NASDAQ:NFLX • US64110L1061

Current stock price

91.82 USD
+0.08 (+0.09%)
At close:
92.4197 USD
+0.6 (+0.65%)
After Hours:

This NFLX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. NFLX Profitability Analysis

1.1 Basic Checks

  • NFLX had positive earnings in the past year.
  • NFLX had a positive operating cash flow in the past year.
  • 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.
NFLX Yearly Net Income VS EBIT VS OCF VS FCFNFLX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 19.75%, NFLX belongs to the best of the industry, outperforming 94.94% of the companies in the same industry.
  • NFLX has a Return On Equity of 41.26%. This is amongst the best in the industry. NFLX outperforms 96.20% of its industry peers.
  • NFLX has a better Return On Invested Capital (25.95%) than 98.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for NFLX is significantly above the industry average of 7.46%.
  • 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 RankSector 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%
NFLX Yearly ROA, ROE, ROICNFLX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • The Profit Margin of NFLX (24.30%) is better than 92.41% of its industry peers.
  • NFLX's Profit Margin has improved in the last couple of years.
  • NFLX's Operating Margin of 29.49% is amongst the best of the industry. NFLX outperforms 97.47% of its industry peers.
  • NFLX's Operating Margin has improved in the last couple of years.
  • The Gross Margin of NFLX (48.49%) is comparable to the rest of the industry.
  • NFLX's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
NFLX Yearly Profit, Operating, Gross MarginsNFLX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. NFLX Health Analysis

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.
  • The debt/assets ratio for NFLX has been reduced compared to a year ago.
NFLX Yearly Shares OutstandingNFLX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
NFLX Yearly Total Debt VS Total AssetsNFLX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • NFLX has an Altman-Z score of 10.73. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
  • NFLX has a better Altman-Z score (10.73) than 98.73% of its industry peers.
  • 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 84.81% of the companies in the same industry.
  • A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
  • NFLX has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: NFLX outperforms 49.37% of its industry peers.
  • Although NFLX's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.51
Debt/FCF 1.53
Altman-Z 10.73
ROIC/WACC2.51
WACC10.33%
NFLX Yearly LT Debt VS Equity VS FCFNFLX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
  • NFLX has a Current ratio (1.19) which is in line with its industry peers.
  • 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's Quick ratio of 1.19 is in line compared to the rest of the industry. NFLX outperforms 56.96% 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 RankSector Rank
Current Ratio 1.19
Quick Ratio 1.19
NFLX Yearly Current Assets VS Current LiabilitesNFLX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. NFLX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 27.43% over the past year.
  • The Earnings Per Share has been growing by 32.92% on average over the past years. This is a very strong growth
  • Looking at the last year, NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.85% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 18.40% 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 10.43% yearly.
EPS Next Y27.48%
EPS Next 2Y24.11%
EPS Next 3Y22.01%
EPS Next 5Y18.4%
Revenue Next Year13.45%
Revenue Next 2Y12.52%
Revenue Next 3Y11.63%
Revenue Next 5Y10.43%

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.
NFLX Yearly Revenue VS EstimatesNFLX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
NFLX Yearly EPS VS EstimatesNFLX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. NFLX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 36.29, 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 78.48% of the companies listed in the same industry.
  • NFLX is valuated rather expensively when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 28.50, which means the current valuation is very expensive for NFLX.
  • Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than 75.95% of the companies in the same industry.
  • NFLX's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 36.29
Fwd PE 28.5
NFLX Price Earnings VS Forward Price EarningsNFLX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 77.22% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than 70.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 40.98
EV/EBITDA 13.05
NFLX Per share dataNFLX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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 22.01% in the coming years.
PEG (NY)1.32
PEG (5Y)1.1
EPS Next 2Y24.11%
EPS Next 3Y22.01%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NFLX Dividend Analysis

5.1 Amount

  • No dividends for NFLX!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

NFLX Fundamentals: All Metrics, Ratios and Statistics

NETFLIX INC

NASDAQ:NFLX (3/20/2026, 8:12:57 PM)

After market: 92.4197 +0.6 (+0.65%)

91.82

+0.08 (+0.09%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20
Earnings (Next)04-15
Inst Owners83.66%
Inst Owner Change754.7%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap387.68B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts80.74
Price Target115.45 (25.74%)
Short Float %2.14%
Short Ratio1.73
Dividend
Industry RankSector 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)0%
PT rev (3m)-16.44%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 36.29
Fwd PE 28.5
P/S 8.58
P/FCF 40.98
P/OCF 38.2
P/B 14.57
P/tB N/A
EV/EBITDA 13.05
EPS(TTM)2.53
EY2.76%
EPS(NY)3.22
Fwd EY3.51%
FCF(TTM)2.24
FCFY2.44%
OCF(TTM)2.4
OCFY2.62%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.32
PEG (5Y)1.1
Graham Number18.94
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 0.51
Debt/FCF 1.53
Debt/EBITDA 0.45
Cap/Depr 4.11%
Cap/Sales 1.52%
Interest Coverage 18.54
Cash Conversion 33.74%
Profit Quality 86.16%
Current Ratio 1.19
Quick Ratio 1.19
Altman-Z 10.73
F-Score7
WACC10.33%
ROIC/WACC2.51
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 Y27.48%
EPS Next 2Y24.11%
EPS Next 3Y22.01%
EPS Next 5Y18.4%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.45%
Revenue Next 2Y12.52%
Revenue Next 3Y11.63%
Revenue Next 5Y10.43%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year28%
EBIT Next 3Y21.24%
EBIT Next 5Y18.31%
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 Fundamental Analysis 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 27.48% in the next year.