NETFLIX INC (NFLX) Stock Fundamental Analysis
NASDAQ:NFLX • US64110L1061
76.87 USD
+1.01 (+1.33%)
At close: Feb 13, 2026
76.97 USD
+0.1 (+0.13%)
After Hours: 2/13/2026, 8:00:01 PM
Taking everything into account, NFLX scores 7 out of 10 in our fundamental rating. NFLX was compared to 80 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making NFLX a very profitable company, without any liquidiy or solvency issues. NFLX is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make NFLX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- NFLX had positive earnings in the past year.
- NFLX had a positive operating cash flow in the past year.
- In the past 5 years NFLX has always been profitable.
- NFLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.75%, NFLX belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 41.26%, NFLX belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
- NFLX's Return On Invested Capital of 25.95% is amongst the best of the industry. NFLX outperforms 100.00% of its industry peers.
- NFLX had an Average Return On Invested Capital over the past 3 years of 20.73%. This is significantly above the industry average of 7.77%.
- 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
- With an excellent Profit Margin value of 24.30%, NFLX belongs to the best 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 (29.49%) than 97.50% of its industry peers.
- NFLX's Operating Margin has improved in the last couple of years.
- The Gross Margin of NFLX (48.49%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of NFLX has grown nicely.
| 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 less shares outstanding than it did 1 year ago.
- NFLX has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, NFLX has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 9.43 indicates that NFLX is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 9.43, NFLX belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
- 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.
- NFLX has a better Debt to FCF ratio (1.53) than 82.50% of its industry peers.
- NFLX has a Debt/Equity ratio of 0.51. This is a neutral value indicating NFLX is somewhat dependend on debt financing.
- NFLX's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. NFLX outperforms 48.75% of 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 | 9.43 |
ROIC/WACC2.77
WACC9.35%
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.
- Looking at the Quick ratio, with a value of 1.19, NFLX is in line with its industry, outperforming 57.50% 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. Growth
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.
- The Earnings Per Share has been growing by 32.92% 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 15.85% in the last year.
- 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
- The Earnings Per Share is expected to grow by 18.67% on average over the next years. This is quite good.
- The Revenue is expected to grow by 10.66% on average over the next years. This is quite good.
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y18.67%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.66%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 30.38, NFLX can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of NFLX to the average of the S&P500 Index (26.68), we can say NFLX is valued inline with the index average.
- A Price/Forward Earnings ratio of 24.01 indicates a rather expensive valuation of NFLX.
- 77.50% of the companies in the same industry are more expensive than NFLX, based on the Price/Forward Earnings ratio.
- NFLX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 24.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than 77.50% of the companies in the same industry.
- 68.75% 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 | 34.3 | ||
| EV/EBITDA | 10.97 |
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.
- A more expensive valuation may be justified as NFLX's earnings are expected to grow with 21.94% in the coming years.
PEG (NY)1.14
PEG (5Y)0.92
EPS Next 2Y24.07%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
76.87
+1.01 (+1.33%)
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 Change559.76%
Ins Owners0.02%
Ins Owner Change12.24%
Market Cap324.56B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.23
Price Target115.46 (50.2%)
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)-11.83%
PT rev (3m)-91.63%
EPS NQ rev (1m)-6.01%
EPS NQ rev (3m)-90.62%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-90.3%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.38 | ||
| Fwd PE | 24.01 | ||
| P/S | 7.18 | ||
| P/FCF | 34.3 | ||
| P/OCF | 31.98 | ||
| P/B | 12.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)2.53
EY3.29%
EPS(NY)3.2
Fwd EY4.16%
FCF(TTM)2.24
FCFY2.92%
OCF(TTM)2.4
OCFY3.13%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.14
PEG (5Y)0.92
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 | 250 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 9.43 |
F-Score7
WACC9.35%
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)27.43%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%31.15%
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y18.67%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.66%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year27.15%
EBIT Next 3Y20.8%
EBIT Next 5Y18.54%
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 9 / 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 26.69% in the next year.