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
NFLX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 growing strongly while it is still valued neutral. This is a good combination! 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.
- 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.
- NFLX's Return On Equity of 41.26% is amongst the best of the industry. NFLX outperforms 95.00% of its industry peers.
- NFLX has a Return On Invested Capital of 25.95%. This is amongst the best in 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 has a better Profit Margin (24.30%) than 95.00% of its industry peers.
- In the last couple of years the Profit Margin of NFLX has grown nicely.
- NFLX's Operating Margin of 29.49% is amongst the best of the industry. NFLX outperforms 97.50% of its industry peers.
- In the last couple of years the Operating Margin of NFLX has grown nicely.
- NFLX's Gross Margin of 48.49% is in line compared 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.
- NFLX has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NFLX has more shares outstanding
- NFLX has a better debt/assets ratio than last year.
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.
- NFLX's Altman-Z score of 9.83 is amongst the best of the industry. NFLX outperforms 98.75% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.53, NFLX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- NFLX has a Debt/Equity ratio of 0.51. This is a neutral value indicating NFLX is somewhat dependend on debt financing.
- The Debt to Equity ratio of NFLX (0.51) 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 | 9.83 |
ROIC/WACC2.68
WACC9.67%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.19, NFLX perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- 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.
- NFLX does not score too well on the current and quick ratio evaluation. However, as it has 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
- The Revenue has grown by 15.85% 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)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
- Based on estimates for the next years, NFLX will show a very strong growth in Earnings Per Share. The EPS will grow by 20.08% on average per year.
- Based on estimates for the next years, NFLX will show a quite strong growth in Revenue. The Revenue will grow by 10.32% on average per year.
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
- 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.
- 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
- The Price/Earnings ratio is 32.49, which means the current valuation is very expensive for NFLX.
- 77.50% of the companies in the same industry are more expensive than NFLX, based on the Price/Earnings ratio.
- NFLX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.92.
- NFLX is valuated rather expensively with a Price/Forward Earnings ratio of 24.89.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA 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/Free Cash Flow ratio is a bit cheaper when compared to the industry. NFLX is 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
- NFLX does not give a dividend.
| 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 Target115.46 (40.46%)
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.