88 USD
-0.05 (-0.06%)
88.4398 USD
+0.44 (+0.5%)
We assign a fundamental rating of 7 out of 10 to NFLX. 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
- 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.
- NFLX's Return On Equity of 40.19% is amongst the best of the industry. NFLX outperforms 95.00% of its industry peers.
- With an excellent Return On Invested Capital value of 24.41%, NFLX belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NFLX 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 better Profit Margin (24.05%) than 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.
- In the last couple of years the Operating Margin of NFLX has grown nicely.
- The Gross Margin of NFLX (48.09%) 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 | 29.14% | ||
| 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.
- The number of shares outstanding for NFLX has been reduced compared to 5 years ago.
- NFLX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 10.38 indicates that NFLX is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.38, NFLX belongs to the top of the industry, outperforming 97.50% 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.
- NFLX's Debt to FCF ratio of 1.61 is amongst the best of the industry. NFLX outperforms 81.25% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that 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 48.75% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.61 | ||
| Altman-Z | 10.38 |
ROIC/WACC2.35
WACC10.37%
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 has a Current ratio of 1.33. This is in the better half of the industry: NFLX outperforms 62.50% 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'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
- The Earnings Per Share has grown by an impressive 35.48% over the past year.
- 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
- NFLX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.58% yearly.
- Based on estimates for the next years, NFLX will show a quite strong growth in Revenue. The Revenue will grow by 11.63% on average per year.
EPS Next Y31.21%
EPS Next 2Y29.16%
EPS Next 3Y26.35%
EPS Next 5Y21.58%
Revenue Next Year15.95%
Revenue Next 2Y14.51%
Revenue Next 3Y13.46%
Revenue Next 5Y11.63%
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
- The Price/Earnings ratio is 36.82, which means the current valuation is very expensive for NFLX.
- 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.
- The average S&P500 Price/Earnings ratio is at 27.38. NFLX is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 26.60, which means the current valuation is very expensive for NFLX.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 76.25% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of NFLX to the average of the S&P500 Index (24.29), we can say NFLX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.82 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
- 72.50% of the companies in the same industry are more expensive than NFLX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.7 | ||
| EV/EBITDA | 13.17 |
4.3 Compensation for Growth
- NFLX's 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
-0.05 (-0.06%)
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 Change14.3%
Ins Owners0.02%
Ins Owner Change18.26%
Market Cap373.93B
Revenue(TTM)43.38B
Net Income(TTM)10.43B
Analysts79.61
Price Target130.01 (47.74%)
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)-1.15%
Min EPS beat(4)-17.39%
Max EPS beat(4)13.44%
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)-5.9%
PT rev (3m)-90.57%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-89.84%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-90.27%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.82 | ||
| Fwd PE | 26.6 | ||
| P/S | 8.62 | ||
| P/FCF | 41.7 | ||
| P/OCF | 39.06 | ||
| P/B | 14.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.17 |
EPS(TTM)2.39
EY2.72%
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 | 10.38 |
F-Score8
WACC10.37%
ROIC/WACC2.35
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 Year15.95%
Revenue Next 2Y14.51%
Revenue Next 3Y13.46%
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.