NETFLIX INC (NFLX) Fundamental Analysis & Valuation

NASDAQ:NFLX • US64110L1061

Current stock price

92.12 USD
-0.15 (-0.16%)
At close:
91.4497 USD
-0.67 (-0.73%)
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

  • 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.
  • NFLX had a positive operating cash flow in each of the past 5 years.
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 has a better Return On Invested Capital (24.76%) than 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 159.06%.
  • The last Return On Invested Capital (24.76%) for NFLX is above the 3 year average (20.73%), which is a sign of increasing profitability.
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

  • NFLX has a better Profit Margin (28.52%) than 94.94% of its industry peers.
  • NFLX's Profit Margin has improved in the last couple of years.
  • The Operating Margin of NFLX (29.72%) is better than 97.47% of its industry peers.
  • In the last couple of years the Operating Margin of NFLX has grown nicely.
  • The Gross Margin of NFLX (49.03%) is comparable to the rest of the industry.
  • NFLX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 29.72%
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

  • 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.
  • 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

  • An Altman-Z score of 10.53 indicates that NFLX is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of NFLX (10.53) is better than 98.73% of its industry peers.
  • The Debt to FCF ratio of NFLX is 1.21, which is an excellent value as it means it would take NFLX, only 1.21 years of fcf income to pay off all of its debts.
  • NFLX has a better Debt to FCF ratio (1.21) than 82.28% 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.
  • The Debt to Equity ratio of NFLX (0.43) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.21
Altman-Z 10.53
ROIC/WACC2.77
WACC8.95%
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 1.41 indicates that NFLX should not have too much problems paying its short term obligations.
  • NFLX has a better Current ratio (1.41) than 62.03% of its industry peers.
  • A Quick Ratio of 1.41 indicates that NFLX should not have too much problems paying 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

  • NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.27%, 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 16.72%.
  • 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)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

  • Based on the Price/Earnings ratio of 35.84, 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 79.75% of the companies are valued more expensively.
  • NFLX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.54.
  • A Price/Forward Earnings ratio of 23.40 indicates a rather expensive valuation of NFLX.
  • Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 79.75% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.68. NFLX is around the same levels.
Industry RankSector Rank
PE 35.84
Fwd PE 23.4
NFLX Price Earnings VS Forward Price EarningsNFLX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 79.75% of the companies in the same industry are more expensive than NFLX, based on the Enterprise Value to EBITDA ratio.
  • 70.89% of the companies in the same industry are more expensive than NFLX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 32.7
EV/EBITDA 12.59
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)1.27
PEG (5Y)1.09
EPS Next 2Y24.81%
EPS Next 3Y22.64%

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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%

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Find the best dividend stocksShow peers with best dividend

NFLX Fundamentals: All Metrics, Ratios and Statistics

NETFLIX INC

NASDAQ:NFLX (4/29/2026, 8:00:01 PM)

After market: 91.4497 -0.67 (-0.73%)

92.12

-0.15 (-0.16%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Industry Strength49.69
Industry Growth57.76
Earnings (Last)04-16
Earnings (Next)07-15
Inst Owners83.79%
Inst Owner Change-0.14%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap388.95B
Revenue(TTM)46.89B
Net Income(TTM)13.37B
Analysts80.68
Price Target117.02 (27.03%)
Short Float %1.86%
Short Ratio1.68
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)-0.59%
EPS NQ rev (3m)-4.83%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-1.92%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.24%
Valuation
Industry RankSector Rank
PE 35.84
Fwd PE 23.4
P/S 8.29
P/FCF 32.7
P/OCF 30.75
P/B 12.5
P/tB N/A
EV/EBITDA 12.59
EPS(TTM)2.57
EY2.79%
EPS(NY)3.94
Fwd EY4.27%
FCF(TTM)2.82
FCFY3.06%
OCF(TTM)3
OCFY3.25%
SpS11.11
BVpS7.37
TBVpS-0.53
PEG (NY)1.27
PEG (5Y)1.09
Graham Number20.6469 (-77.59%)
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 10.53
F-Score7
WACC8.95%
ROIC/WACC2.77
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 35.84 and the Price/Book (PB) ratio is 12.5.


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.