88.05 USD
-0.5 (-0.56%)
88.42 USD
+0.37 (+0.42%)
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 priced too expensively while it is growing strongly. Keep and eye on this one! 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.
- 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 Return On Assets of 18.99%. This is amongst the best in the industry. NFLX outperforms 93.75% of its industry peers.
- The Return On Equity of NFLX (40.19%) is better than 95.00% of its industry peers.
- NFLX has a Return On Invested Capital of 24.41%. This is amongst the best in the industry. NFLX outperforms 98.75% of its industry peers.
- NFLX had an Average Return On Invested Capital over the past 3 years of 16.17%. This is significantly above the industry average of 8.70%.
- The last Return On Invested Capital (24.41%) for NFLX is above the 3 year average (16.17%), which is a sign of increasing profitability.
| 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
- NFLX has a Profit Margin of 24.05%. This is amongst the best in the industry. NFLX outperforms 95.00% of its industry peers.
- In the last couple of years the Profit Margin of NFLX has grown nicely.
- The Operating Margin of NFLX (29.14%) is better than 97.50% of its industry peers.
- NFLX's Operating Margin has improved in the last couple of years.
- NFLX's Gross Margin of 48.09% is in line compared 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 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.
- NFLX has less shares outstanding than it did 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
- NFLX has an Altman-Z score of 10.43. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 10.43, NFLX belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
- NFLX has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
- The Debt to FCF ratio of NFLX (1.61) is better than 81.25% of its industry peers.
- NFLX has a Debt/Equity ratio of 0.56. This is a neutral value indicating NFLX is somewhat dependend on debt financing.
- NFLX's Debt to Equity ratio of 0.56 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 | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.43 |
ROIC/WACC2.37
WACC10.28%
2.3 Liquidity
- NFLX has a Current Ratio of 1.33. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting its short term obligations.
- NFLX's Current ratio of 1.33 is fine compared to the rest of the industry. NFLX outperforms 62.50% of its industry peers.
- NFLX has a Quick Ratio of 1.33. This is a normal value and indicates that NFLX is financially healthy and should not expect problems in meeting 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.
- NFLX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.86% yearly.
- NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.41%.
- The Revenue has been growing by 14.11% on average over the past years. This is quite good.
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 21.58% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 11.63% on average over the next years. This is quite good.
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y21.58%
Revenue Next Year15.9%
Revenue Next 2Y14.49%
Revenue Next 3Y13.45%
Revenue Next 5Y11.63%
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
- Based on the Price/Earnings ratio of 36.84, the valuation of NFLX can be described as expensive.
- Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, NFLX is valued a bit more expensive.
- With a Price/Forward Earnings ratio of 26.62, NFLX can be considered very expensive at the moment.
- 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 24.31. NFLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 26.62 |
4.2 Price Multiples
- NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 72.50% 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 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.73 | ||
| EV/EBITDA | 13.25 |
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)1.18
PEG (5Y)1
EPS Next 2Y29.16%
EPS Next 3Y26.35%
5. Dividend
5.1 Amount
- NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
88.05
-0.5 (-0.56%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)01-20 2026-01-20/amc
Inst Owners79.69%
Inst Owner Change7.6%
Ins Owners0.02%
Ins Owner Change19.19%
Market Cap374.15B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts79.61
Price Target130.94 (48.71%)
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)-5.23%
PT rev (3m)-90.5%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-89.9%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-90.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 26.62 | ||
| P/S | 8.63 | ||
| P/FCF | 41.73 | ||
| P/OCF | 39.08 | ||
| P/B | 14.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.25 |
EPS(TTM)2.39
EY2.71%
EPS(NY)3.31
Fwd EY3.76%
FCF(TTM)2.11
FCFY2.4%
OCF(TTM)2.25
OCFY2.56%
SpS10.21
BVpS6.11
TBVpS-1.57
PEG (NY)1.18
PEG (5Y)1
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 | 10.43 |
F-Score8
WACC10.28%
ROIC/WACC2.37
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 5Y21.58%
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 5Y11.63%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year34.36%
EBIT Next 3Y25.65%
EBIT Next 5Y21.31%
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 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 31.21% in the next year.