NETFLIX INC (NFLX) Stock Fundamental Analysis
USA - NASDAQ:NFLX - US64110L1061 - Common Stock
109.535 USD
-4.56 (-3.99%)
We assign a fundamental rating of 8 out of 10 to NFLX. NFLX was compared to 79 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 growing strongly while it also seems undervalued. This is an interesting combination These ratings would make NFLX suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NFLX was profitable.
In the past year NFLX had a positive cash flow from operations.
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
NFLX has a Return On Assets of 18.99%. This is amongst the best in the industry. NFLX outperforms 93.67% of its industry peers.
Looking at the Return On Equity, with a value of 40.19%, NFLX belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.41%, 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 16.17%. This is significantly above the industry average of 9.82%.
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
NFLX's Profit Margin of 24.05% is amongst the best of the industry. NFLX outperforms 94.94% of its industry peers.
In the last couple of years the Profit Margin of NFLX has grown nicely.
With an excellent Operating Margin value of 29.14%, NFLX belongs to the best of the industry, outperforming 97.47% of the companies in the same industry.
NFLX's Operating Margin has improved in the last couple of years.
NFLX has a Gross Margin (48.09%) which is comparable to the rest of the industry.
NFLX's Gross Margin has improved in the last couple of years.
| 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
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
NFLX has an Altman-Z score of 3.64. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NFLX (3.64) is better than 78.48% of its industry peers.
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.
NFLX has a Debt to FCF ratio of 1.61. This is in the better half of the industry: NFLX outperforms 78.48% 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 has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: NFLX outperforms 46.84% 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 | 3.64 |
ROIC/WACC3.22
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX has a better Current ratio (1.33) than 60.76% of its industry peers.
A Quick Ratio of 1.33 indicates that NFLX should not have too much problems paying its short term obligations.
NFLX has a better Quick ratio (1.33) than 63.29% 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%.
Measured over the past years, NFLX shows a quite strong growth in Revenue. The Revenue has been growing by 14.11% on average per year.
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 22.82% 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 Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.58, the valuation of NFLX can be described as very cheap.
Based on the Price/Earnings ratio, NFLX is valued cheaper than 94.94% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.46. NFLX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 3.32 indicates a rather cheap valuation of NFLX.
NFLX's Price/Forward Earnings ratio is rather cheap when compared to the industry. NFLX is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.39, NFLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.58 | ||
| Fwd PE | 3.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NFLX indicates a rather cheap valuation: NFLX is cheaper than 93.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NFLX is valued cheaply inside the industry as 94.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.19 | ||
| EV/EBITDA | 1.86 |
4.3 Compensation for Growth
NFLX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of NFLX may justify a higher PE ratio.
NFLX's earnings are expected to grow with 25.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)0.12
EPS Next 2Y29.04%
EPS Next 3Y25.74%
5. Dividend
5.1 Amount
NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:NFLX (11/19/2025, 2:58:33 PM)
109.535
-4.56 (-3.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners86.3%
Inst Owner Change-0.49%
Ins Owners0.03%
Ins Owner Change-0.5%
Market Cap46.54B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts80.7
Price TargetN/A
Short Float %N/A
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.03%
PT rev (3m)1.37%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)1.08%
EPS NY rev (1m)-2.94%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.58 | ||
| Fwd PE | 3.32 | ||
| P/S | 1.07 | ||
| P/FCF | 5.19 | ||
| P/OCF | 4.86 | ||
| P/B | 1.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.86 |
EPS(TTM)23.94
EY21.86%
EPS(NY)33.02
Fwd EY30.15%
FCF(TTM)21.1
FCFY19.27%
OCF(TTM)22.53
OCFY20.57%
SpS102.08
BVpS61.08
TBVpS-15.73
PEG (NY)0.15
PEG (5Y)0.12
Graham Number181.38
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 | 3.64 |
F-Score8
WACC7.57%
ROIC/WACC3.22
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 Y30.93%
EPS Next 2Y29.04%
EPS Next 3Y25.74%
EPS Next 5Y22.82%
Revenue 1Y (TTM)15.41%
Revenue growth 3Y9.51%
Revenue growth 5Y14.11%
Sales Q2Q%17.16%
Revenue Next Year15.91%
Revenue Next 2Y14.44%
Revenue Next 3Y13.28%
Revenue Next 5Y11.77%
EBIT growth 1Y31.14%
EBIT growth 3Y18.92%
EBIT growth 5Y31.95%
EBIT Next Year37.9%
EBIT Next 3Y25.13%
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 8 / 10 to NFLX.
What is the valuation status for NFLX stock?
ChartMill assigns a valuation rating of 10 / 10 to NETFLIX INC (NFLX). This can be considered as Undervalued.
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 4.58 and the Price/Book (PB) ratio is 1.79.