94.11 USD
+0.33 (+0.35%)
We assign a fundamental rating of 7 out of 10 to NFLX. NFLX was compared to 80 industry peers in the Entertainment industry. NFLX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NFLX is not overvalued while it is showing excellent growth. This is an interesting 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.
NFLX had a positive operating cash flow in the past year.
Each year in the past 5 years NFLX has been profitable.
In the past 5 years NFLX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.99%, NFLX belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Return On Equity of NFLX (40.19%) is better than 95.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.41%, NFLX belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NFLX is significantly above the industry average of 8.70%.
The 3 year average ROIC (16.17%) for NFLX is below the current ROIC(24.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROIC | 24.41% |
ROA(3y)12.2%
ROA(5y)11.02%
ROE(3y)27.7%
ROE(5y)28.07%
ROIC(3y)16.17%
ROIC(5y)15.85%
1.3 Margins
Looking at the Profit Margin, with a value of 24.05%, NFLX belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NFLX has grown nicely.
NFLX has a better Operating Margin (29.14%) than 97.50% of its industry peers.
In the last couple of years the Operating Margin of NFLX has grown nicely.
With a Gross Margin value of 48.09%, NFLX perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
In the last couple of years the Gross Margin of NFLX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% |
OM growth 3Y8.59%
OM growth 5Y15.63%
PM growth 3Y9.04%
PM growth 5Y19.25%
GM growth 3Y3.42%
GM growth 5Y3.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NFLX is creating value.
The number of shares outstanding for NFLX has been reduced compared to 1 year ago.
NFLX has less shares outstanding than it did 5 years ago.
NFLX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.89 indicates that NFLX is not in any danger for bankruptcy at the moment.
NFLX's Altman-Z score of 10.89 is amongst the best of the industry. NFLX outperforms 96.25% of its industry peers.
The Debt to FCF ratio of NFLX is 1.61, which is an excellent value as it means it would take NFLX, only 1.61 years of fcf income to pay off all of its debts.
NFLX has a better Debt to FCF ratio (1.61) than 81.25% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NFLX is somewhat dependend on debt financing.
The Debt to Equity ratio of NFLX (0.56) 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.89 |
ROIC/WACC2.33
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, NFLX is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX's Quick ratio of 1.33 is fine compared to the rest of the industry. NFLX outperforms 63.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
NFLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.48%, which is quite impressive.
The Earnings Per Share has been growing by 36.86% on average over the past years. This is a very strong growth
Looking at the last year, NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.41% in the last year.
NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.11% yearly.
EPS 1Y (TTM)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
3.2 Future
The Earnings Per Share is expected to grow by 22.16% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.77% on average over the next years. This is quite good.
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y22.16%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
Revenue Next 5Y11.77%
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
NFLX is valuated quite expensively with a Price/Earnings ratio of 39.38.
Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.77. NFLX is valued slightly more expensive when compared to this.
NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 28.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 76.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.35. NFLX is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.38 | ||
| Fwd PE | 28.45 |
4.2 Price Multiples
NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 71.25% of the companies in the same industry.
NFLX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.6 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
The 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 26.35% in the coming years.
PEG (NY)1.26
PEG (5Y)1.07
EPS Next 2Y29.16%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:NFLX (12/31/2025, 12:22:09 PM)
94.11
+0.33 (+0.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners85.29%
Inst Owner Change-0.39%
Ins Owners0.03%
Ins Owner Change-0.1%
Market Cap399.90B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price Target130.94 (39.14%)
Short Float %N/A
Short Ratio2.63
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)-8.9%
Min EPS beat(2)-17.39%
Max EPS beat(2)-0.4%
EPS beat(4)1
Avg EPS beat(4)-1.14%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.49%
EPS beat(8)4
Avg EPS beat(8)0.94%
EPS beat(12)6
Avg EPS beat(12)-4.16%
EPS beat(16)10
Avg EPS beat(16)4.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.66%
Revenue beat(8)0
Avg Revenue beat(8)-1.36%
Revenue beat(12)0
Avg Revenue beat(12)-1.67%
Revenue beat(16)0
Avg Revenue beat(16)-1.77%
PT rev (1m)-90.51%
PT rev (3m)-90.47%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-89.89%
EPS NY rev (1m)0.21%
EPS NY rev (3m)-90.27%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.38 | ||
| Fwd PE | 28.45 | ||
| P/S | 9.22 | ||
| P/FCF | 44.6 | ||
| P/OCF | 41.77 | ||
| P/B | 15.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.02 |
EPS(TTM)2.39
EY2.54%
EPS(NY)3.31
Fwd EY3.52%
FCF(TTM)2.11
FCFY2.24%
OCF(TTM)2.25
OCFY2.39%
SpS10.21
BVpS6.11
TBVpS-1.57
PEG (NY)1.26
PEG (5Y)1.07
Graham Number18.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 40.19% | ||
| ROCE | 27.97% | ||
| ROIC | 24.41% | ||
| ROICexc | 30.76% | ||
| ROICexgc | 340.72% | ||
| OM | 29.14% | ||
| PM (TTM) | 24.05% | ||
| GM | 48.09% | ||
| FCFM | 20.67% |
ROA(3y)12.2%
ROA(5y)11.02%
ROE(3y)27.7%
ROE(5y)28.07%
ROIC(3y)16.17%
ROIC(5y)15.85%
ROICexc(3y)20.02%
ROICexc(5y)19.87%
ROICexgc(3y)637.19%
ROICexgc(5y)N/A
ROCE(3y)18.53%
ROCE(5y)18.16%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y14.95%
ROICexc growth 5Y21.57%
OM growth 3Y8.59%
OM growth 5Y15.63%
PM growth 3Y9.04%
PM growth 5Y19.25%
GM growth 3Y3.42%
GM growth 5Y3.77%
F-Score8
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Debt/EBITDA | 0.5 | ||
| Cap/Depr | 3.76% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 33.26% | ||
| Profit Quality | 85.96% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 10.89 |
F-Score8
WACC10.47%
ROIC/WACC2.33
Cap/Depr(3y)2.68%
Cap/Depr(5y)3.36%
Cap/Sales(3y)1.15%
Cap/Sales(5y)1.44%
Profit Quality(3y)81.18%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.48%
EPS 3Y20.83%
EPS 5Y36.86%
EPS Q2Q%8.7%
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y22.16%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year34.36%
EBIT Next 3Y25.65%
EBIT Next 5Y21.45%
FCF growth 1Y57.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.12%
OCF growth 3Y165.66%
OCF growth 5YN/A
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 for 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.
What are the PE and PB ratios of NETFLIX INC (NFLX) stock?
The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 39.38 and the Price/Book (PB) ratio is 15.41.