NETFLIX INC (NFLX) Stock Fundamental Analysis

NASDAQ:NFLX • US64110L1061

78.67 USD
+1.67 (+2.17%)
At close: Feb 20, 2026
78.58 USD
-0.09 (-0.11%)
After Hours: 2/20/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall NFLX gets a fundamental rating of 7 out of 10. We evaluated NFLX against 80 industry peers in the Entertainment industry. NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. 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!.


Dividend Valuation Growth Profitability Health

9

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.
NFLX Yearly Net Income VS EBIT VS OCF VS FCFNFLX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • The Return On Assets of NFLX (19.75%) is better than 93.75% of its industry peers.
  • 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 has a better Return On Invested Capital (25.95%) than 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 RankSector 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%
NFLX Yearly ROA, ROE, ROICNFLX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • NFLX's Profit Margin of 24.30% is amongst the best of the industry. NFLX outperforms 93.75% 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 97.50% of its industry peers.
  • In the last couple of years the Operating Margin of NFLX has grown nicely.
  • NFLX has a Gross Margin of 48.49%. This is comparable to the rest of the industry: NFLX outperforms 57.50% of its industry peers.
  • In the last couple of years the Gross Margin of NFLX has grown nicely.
Industry RankSector 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%
NFLX Yearly Profit, Operating, Gross MarginsNFLX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NFLX is creating value.
  • Compared to 1 year ago, NFLX has less shares outstanding
  • The number of shares outstanding for NFLX has been reduced compared to 5 years ago.
  • Compared to 1 year ago, NFLX has an improved debt to assets ratio.
NFLX Yearly Shares OutstandingNFLX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
NFLX Yearly Total Debt VS Total AssetsNFLX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 9.44 indicates that NFLX is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 9.44, NFLX belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
  • 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 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.
  • 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 RankSector Rank
Debt/Equity 0.51
Debt/FCF 1.53
Altman-Z 9.44
ROIC/WACC2.76
WACC9.39%
NFLX Yearly LT Debt VS Equity VS FCFNFLX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
  • NFLX has a Current ratio of 1.19. This is comparable to the rest of the industry: NFLX outperforms 55.00% of 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 57.50% 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 RankSector Rank
Current Ratio 1.19
Quick Ratio 1.19
NFLX Yearly Current Assets VS Current LiabilitesNFLX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

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.
  • 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.
  • Measured over the past years, NFLX shows a quite strong growth in Revenue. The Revenue has been growing by 12.57% on average per year.
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

  • NFLX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.67% yearly.
  • NFLX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.66% yearly.
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.
  • 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.
NFLX Yearly Revenue VS EstimatesNFLX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
NFLX Yearly EPS VS EstimatesNFLX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.09, which means the current valuation is very expensive for NFLX.
  • Compared to the rest of the industry, the Price/Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 80.00% of the companies listed in the same industry.
  • NFLX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.99.
  • With a Price/Forward Earnings ratio of 24.57, NFLX is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 78.75% 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 28.06.
Industry RankSector Rank
PE 31.09
Fwd PE 24.57
NFLX Price Earnings VS Forward Price EarningsNFLX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 77.50% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 68.75% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 35.11
EV/EBITDA 10.99
NFLX Per share dataNFLX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • NFLX's 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)1.17
PEG (5Y)0.94
EPS Next 2Y24.07%
EPS Next 3Y21.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for NFLX!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

NETFLIX INC

NASDAQ:NFLX (2/20/2026, 8:00:01 PM)

After market: 78.58 -0.09 (-0.11%)

78.67

+1.67 (+2.17%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20
Earnings (Next)04-15
Inst Owners79.69%
Inst Owner Change559.76%
Ins Owners0.02%
Ins Owner Change12.24%
Market Cap332.16B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.23
Price Target115.46 (46.76%)
Short Float %1.81%
Short Ratio1.52
Dividend
Industry RankSector 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 RankSector Rank
PE 31.09
Fwd PE 24.57
P/S 7.35
P/FCF 35.11
P/OCF 32.73
P/B 12.48
P/tB N/A
EV/EBITDA 10.99
EPS(TTM)2.53
EY3.22%
EPS(NY)3.2
Fwd EY4.07%
FCF(TTM)2.24
FCFY2.85%
OCF(TTM)2.4
OCFY3.06%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.17
PEG (5Y)0.94
Graham Number18.94
Profitability
Industry RankSector 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 RankSector 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 9.44
F-Score7
WACC9.39%
ROIC/WACC2.76
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.