NETFLIX INC (NFLX) Fundamental Analysis & Valuation

NASDAQ:NFLX • US64110L1061

Current stock price

92.44 USD
-0.38 (-0.41%)
At close:
92.3 USD
-0.14 (-0.15%)
After Hours:

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

8

1. NFLX Profitability Analysis

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.
  • 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

  • NFLX has a Return On Assets of 21.92%. This is amongst the best in the industry. NFLX outperforms 96.20% of its industry peers.
  • Looking at the Return On Equity, with a value of 42.97%, NFLX belongs to the top of the industry, outperforming 97.47% of the companies in the same industry.
  • NFLX's Return On Invested Capital of 24.76% is amongst the best of the industry. NFLX outperforms 97.47% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for NFLX is significantly below the industry average of 159.07%.
  • The 3 year average ROIC (20.73%) for NFLX is below the current ROIC(24.76%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 21.92%
ROE 42.97%
ROIC 24.76%
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

  • Looking at the Profit Margin, with a value of 28.52%, NFLX belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
  • In the last couple of years the Profit Margin of NFLX has grown nicely.
  • The Operating Margin of NFLX (29.72%) is better than 97.47% of its industry peers.
  • NFLX's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 49.03%, NFLX is in line with its industry, outperforming 55.70% of the companies in the same industry.
  • In the last couple of years the Gross Margin of NFLX has grown nicely.
Industry RankSector Rank
OM 29.72%
PM (TTM) 28.52%
GM 49.03%
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

8

2. NFLX Health Analysis

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.
  • NFLX has less shares outstanding than it did 1 year ago.
  • NFLX has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, NFLX has an improved debt to assets ratio.
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

  • An Altman-Z score of 10.58 indicates that NFLX is not in any danger for bankruptcy at the moment.
  • NFLX has a Altman-Z score of 10.58. This is amongst the best in the industry. NFLX outperforms 98.73% of its industry peers.
  • NFLX has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
  • NFLX has a Debt to FCF ratio of 1.21. This is amongst the best in the industry. NFLX outperforms 83.54% of its industry peers.
  • NFLX has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
  • NFLX has a Debt to Equity ratio (0.43) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.21
Altman-Z 10.58
ROIC/WACC2.76
WACC8.98%
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

  • NFLX has a Current Ratio of 1.41. 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 of 1.41. This is in the better half of the industry: NFLX outperforms 62.03% of its industry peers.
  • NFLX has a Quick Ratio of 1.41. 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 of 1.41. This is in the better half of the industry: NFLX outperforms 63.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 1.41
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

8

3. NFLX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 21.27% over the past year.
  • Measured over the past years, NFLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.92% on average per year.
  • The Revenue has grown by 16.72% in the past year. This is quite good.
  • The Revenue has been growing by 12.57% on average over the past years. This is quite good.
EPS 1Y (TTM)21.27%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%5.9%
Revenue 1Y (TTM)16.72%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%16.19%

3.2 Future

  • NFLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.15% 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 Y28.18%
EPS Next 2Y24.81%
EPS Next 3Y22.64%
EPS Next 5Y20.15%
Revenue Next Year13.98%
Revenue Next 2Y12.85%
Revenue Next 3Y11.93%
Revenue Next 5Y10.66%

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.
  • 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.
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

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Find the best growth stocksShow best growing peers

5

4. NFLX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 35.97 indicates a quite expensive valuation of NFLX.
  • Compared to the rest of the industry, the Price/Earnings ratio of NFLX indicates a rather cheap valuation: NFLX is cheaper than 81.01% of the companies listed in the same industry.
  • NFLX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.47.
  • A Price/Forward Earnings ratio of 23.48 indicates a rather 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 79.75% 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 22.62.
Industry RankSector Rank
PE 35.97
Fwd PE 23.48
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

  • 81.01% of the companies in the same industry are more expensive than NFLX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than the industry average as 73.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 32.81
EV/EBITDA 12.66
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

  • NFLX's 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 22.64% in the coming years.
PEG (NY)1.28
PEG (5Y)1.09
EPS Next 2Y24.81%
EPS Next 3Y22.64%

More info and screens

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

0

5. NFLX Dividend Analysis

5.1 Amount

  • NFLX does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

NFLX Fundamentals: All Metrics, Ratios and Statistics

NETFLIX INC

NASDAQ:NFLX (4/24/2026, 5:16:00 PM)

After market: 92.3 -0.14 (-0.15%)

92.44

-0.38 (-0.41%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)04-16
Earnings (Next)07-15
Inst Owners83.79%
Inst Owner Change0.15%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap390.30B
Revenue(TTM)46.89B
Net Income(TTM)13.37B
Analysts80.68
Price Target117.02 (26.59%)
Short Float %1.91%
Short Ratio1.76
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)-5.33%
Min EPS beat(2)-10.16%
Max EPS beat(2)-0.51%
EPS beat(4)0
Avg EPS beat(4)-7.11%
Min EPS beat(4)-17.39%
Max EPS beat(4)-0.4%
EPS beat(8)3
Avg EPS beat(8)-1.37%
EPS beat(12)6
Avg EPS beat(12)1.2%
EPS beat(16)8
Avg EPS beat(16)-0.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.29%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)0
Avg Revenue beat(16)-1.65%
PT rev (1m)1.35%
PT rev (3m)-9.99%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-3.39%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.78%
Valuation
Industry RankSector Rank
PE 35.97
Fwd PE 23.48
P/S 8.32
P/FCF 32.81
P/OCF 30.85
P/B 12.54
P/tB N/A
EV/EBITDA 12.66
EPS(TTM)2.57
EY2.78%
EPS(NY)3.94
Fwd EY4.26%
FCF(TTM)2.82
FCFY3.05%
OCF(TTM)3
OCFY3.24%
SpS11.11
BVpS7.37
TBVpS-0.53
PEG (NY)1.28
PEG (5Y)1.09
Graham Number20.6469 (-77.66%)
Profitability
Industry RankSector Rank
ROA 21.92%
ROE 42.97%
ROCE 28.51%
ROIC 24.76%
ROICexc 33.08%
ROICexgc 376.01%
OM 29.72%
PM (TTM) 28.52%
GM 49.03%
FCFM 25.37%
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 Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.21
Debt/EBITDA 0.43
Cap/Depr 4.4%
Cap/Sales 1.61%
Interest Coverage 250
Cash Conversion 40.67%
Profit Quality 88.94%
Current Ratio 1.41
Quick Ratio 1.41
Altman-Z 10.58
F-Score7
WACC8.98%
ROIC/WACC2.76
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)21.27%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%5.9%
EPS Next Y28.18%
EPS Next 2Y24.81%
EPS Next 3Y22.64%
EPS Next 5Y20.15%
Revenue 1Y (TTM)16.72%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%16.19%
Revenue Next Year13.98%
Revenue Next 2Y12.85%
Revenue Next 3Y11.93%
Revenue Next 5Y10.66%
EBIT growth 1Y25.19%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year28.05%
EBIT Next 3Y21.23%
EBIT Next 5Y18.57%
FCF growth 1Y71.24%
FCF growth 3Y80.14%
FCF growth 5Y37.44%
OCF growth 1Y73.1%
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.


How profitable is NETFLIX INC (NFLX) stock?

NETFLIX INC (NFLX) has a profitability rating of 8 / 10.


What are the PE and PB ratios of NETFLIX INC (NFLX) stock?

The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 35.97 and the Price/Book (PB) ratio is 12.54.


What is the earnings growth outlook for NETFLIX INC?

The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 28.18% in the next year.