82.2 USD
+1.33 (+1.64%)
At close: Feb 6, 2026
82.06 USD
-0.14 (-0.17%)
After Hours: 2/6/2026, 8:00:01 PM
We assign a fundamental rating of 7 out of 10 to NFLX. NFLX was compared to 80 industry peers in the Entertainment industry. NFLX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NFLX is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, NFLX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year NFLX was profitable.
- NFLX had a positive operating cash flow in the past year.
- In the past 5 years NFLX has always been profitable.
- Each year in the past 5 years NFLX had a positive operating cash flow.
1.2 Ratios
- NFLX has a better Return On Assets (19.75%) than 93.75% of its industry peers.
- The Return On Equity of NFLX (41.26%) is better than 95.00% of its industry peers.
- NFLX's Return On Invested Capital of 25.95% is amongst the best of the industry. NFLX outperforms 98.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NFLX 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
- NFLX's Profit Margin of 24.30% is amongst the best of the industry. NFLX outperforms 95.00% of its industry peers.
- In the last couple of years the Profit Margin of NFLX has grown nicely.
- The Operating Margin of NFLX (29.49%) is better than 97.50% of its industry peers.
- In the last couple of years the Operating Margin of NFLX has grown nicely.
- NFLX has a Gross Margin (48.49%) which is comparable to the rest of the industry.
- 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.
- NFLX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for NFLX has been increased compared to 5 years ago.
- The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
- NFLX has an Altman-Z score of 9.83. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of NFLX (9.83) is better than 98.75% 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.
- NFLX's Debt to FCF ratio of 1.53 is amongst the best of the industry. NFLX outperforms 81.25% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
- The Debt to Equity ratio of NFLX (0.51) is comparable to the rest of the industry.
- Although NFLX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.53 | ||
| Altman-Z | 9.83 |
ROIC/WACC2.68
WACC9.67%
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.
- 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 has a Quick ratio of 1.19. This is comparable to the rest of the industry: NFLX outperforms 56.25% 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
- 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
- NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.85%.
- 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 20.08% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.32% on average over the next years. This is quite good.
EPS Next Y30.7%
EPS Next 2Y25.56%
EPS Next 3Y22.44%
EPS Next 5Y20.08%
Revenue Next Year13.71%
Revenue Next 2Y12.52%
Revenue Next 3Y11.69%
Revenue Next 5Y10.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 32.49, the valuation of NFLX can be described as expensive.
- 77.50% of the companies in the same industry are more expensive than NFLX, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.92. NFLX is around the same levels.
- NFLX is valuated rather expensively with a Price/Forward Earnings ratio of 24.89.
- NFLX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 76.25% of the companies in the same industry.
- NFLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.49 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than 75.00% of the companies in the same industry.
- 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 | 36.92 | ||
| EV/EBITDA | 11.6 |
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.
- NFLX's earnings are expected to grow with 22.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)0.99
EPS Next 2Y25.56%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
- No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
82.2
+1.33 (+1.64%)
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 Change161.77%
Ins Owners0.02%
Ins Owner Change18.27%
Market Cap349.29B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.61
Price Target130.01 (58.16%)
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)-0.71%
PT rev (3m)-90.58%
EPS NQ rev (1m)-6.07%
EPS NQ rev (3m)-90.64%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-90%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.49 | ||
| Fwd PE | 24.89 | ||
| P/S | 7.73 | ||
| P/FCF | 36.92 | ||
| P/OCF | 34.42 | ||
| P/B | 13.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)2.53
EY3.08%
EPS(NY)3.3
Fwd EY4.02%
FCF(TTM)2.23
FCFY2.71%
OCF(TTM)2.39
OCFY2.91%
SpS10.63
BVpS6.26
TBVpS-1.45
PEG (NY)1.06
PEG (5Y)0.99
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 | 9.83 |
F-Score7
WACC9.67%
ROIC/WACC2.68
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 Y30.7%
EPS Next 2Y25.56%
EPS Next 3Y22.44%
EPS Next 5Y20.08%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.71%
Revenue Next 2Y12.52%
Revenue Next 3Y11.69%
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 30.7% in the next year.