NETFLIX INC (NFLX) Fundamental Analysis & Valuation
NASDAQ:NFLX • US64110L1061
Current stock price
98.82 USD
-0.11 (-0.11%)
At close:
100.5 USD
+1.68 (+1.7%)
After Hours:
This NFLX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. NFLX Profitability Analysis
1.1 Basic Checks
- In the past year NFLX was profitable.
- 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.
1.2 Ratios
- The Return On Assets of NFLX (19.75%) is better than 94.94% of its industry peers.
- NFLX has a better Return On Equity (41.26%) than 96.20% of its industry peers.
- With an excellent Return On Invested Capital value of 25.95%, NFLX belongs to the best of the industry, outperforming 98.73% of the companies in the same industry.
- NFLX had an Average Return On Invested Capital over the past 3 years of 20.73%. This is significantly above the industry average of 7.26%.
- 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 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
- 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 has a Operating Margin of 29.49%. This is amongst the best in the industry. NFLX outperforms 97.47% of its industry peers.
- NFLX's Operating Margin has improved in the last couple of years.
- NFLX has a Gross Margin of 48.49%. This is comparable to the rest of the industry: NFLX outperforms 56.96% 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. 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.
- The number of shares outstanding for NFLX has been reduced compared to 1 year ago.
- Compared to 5 years ago, NFLX has less shares outstanding
- NFLX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 11.36 indicates that NFLX is not in any danger for bankruptcy at the moment.
- NFLX's Altman-Z score of 11.36 is amongst the best of the industry. NFLX outperforms 98.73% 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 83.54% 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.
- NFLX has a Debt to Equity ratio (0.51) which is in line with its industry peers.
- 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 | 11.36 |
ROIC/WACC2.88
WACC9%
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 comparable to the rest of the industry.
- A Quick Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.19, NFLX is in line with its industry, outperforming 58.23% of the companies in the same industry.
- 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. 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 27.43%, 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.
- The Revenue has grown by 15.85% in the past year. This is quite good.
- 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
- Based on estimates for the next years, NFLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.40% 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 10.43% on average per year.
EPS Next Y27.4%
EPS Next 2Y24.37%
EPS Next 3Y22.16%
EPS Next 5Y18.4%
Revenue Next Year13.44%
Revenue Next 2Y12.56%
Revenue Next 3Y11.86%
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.
- 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. NFLX Valuation Analysis
4.1 Price/Earnings Ratio
- NFLX is valuated quite expensively with a Price/Earnings ratio of 39.06.
- Compared to the rest of the industry, the Price/Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 74.68% 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 26.21.
- NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 30.70.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than 73.42% of the companies in the same industry.
- NFLX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.06 | ||
| Fwd PE | 30.7 |
4.2 Price Multiples
- NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 78.48% of the companies in the same industry.
- 70.89% of the companies in the same industry are more expensive than NFLX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.1 | ||
| EV/EBITDA | 14.06 |
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.
- NFLX's earnings are expected to grow with 22.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.43
PEG (5Y)1.19
EPS Next 2Y24.37%
EPS Next 3Y22.16%
5. NFLX Dividend Analysis
5.1 Amount
- NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NFLX Fundamentals: All Metrics, Ratios and Statistics
98.82
-0.11 (-0.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20 2026-01-20/amc
Earnings (Next)04-16 2026-04-16/amc
Inst Owners83.66%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap417.23B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts80.68
Price Target116.45 (17.84%)
Short Float %1.93%
Short Ratio1.59
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)0.86%
PT rev (3m)-11.07%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-5.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.06 | ||
| Fwd PE | 30.7 | ||
| P/S | 9.23 | ||
| P/FCF | 44.1 | ||
| P/OCF | 41.11 | ||
| P/B | 15.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.06 |
EPS(TTM)2.53
EY2.56%
EPS(NY)3.22
Fwd EY3.26%
FCF(TTM)2.24
FCFY2.27%
OCF(TTM)2.4
OCFY2.43%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.43
PEG (5Y)1.19
Graham Number18.94
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 | 18.54 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 11.36 |
F-Score7
WACC9%
ROIC/WACC2.88
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 Y27.4%
EPS Next 2Y24.37%
EPS Next 3Y22.16%
EPS Next 5Y18.4%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.44%
Revenue Next 2Y12.56%
Revenue Next 3Y11.86%
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 4 / 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 9 / 10.
What are the PE and PB ratios of NETFLIX INC (NFLX) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 39.06 and the Price/Book (PB) ratio is 15.68.
What is the earnings growth outlook for NETFLIX INC?
The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 27.4% in the next year.