NETFLIX INC (NFLX) Fundamental Analysis & Valuation
NASDAQ:NFLX • US64110L1061
Current stock price
102.05 USD
+2.66 (+2.68%)
At close:
102.015 USD
-0.03 (-0.03%)
Pre-Market:
This NFLX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. NFLX Profitability Analysis
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.
- In the past 5 years NFLX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.75%, NFLX belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
- NFLX has a Return On Equity of 41.26%. This is amongst the best in the industry. NFLX outperforms 96.20% of its industry peers.
- The Return On Invested Capital of NFLX (25.95%) is better than 98.73% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NFLX is significantly above the industry average of 7.26%.
- 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
- The Profit Margin of NFLX (24.30%) is better than 92.41% of its industry peers.
- NFLX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 29.49%, NFLX belongs to the best of the industry, outperforming 97.47% of the companies in the same industry.
- 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 56.96% of its industry peers.
- NFLX's Gross Margin has improved in the last couple of years.
| 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. NFLX Health Analysis
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.
- NFLX has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, NFLX has less shares outstanding
- The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
- NFLX has an Altman-Z score of 11.63. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 11.63, NFLX belongs to the best of the industry, outperforming 98.73% 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.
- The Debt to FCF ratio of NFLX (1.53) is better than 83.54% 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 49.37% 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 | 11.63 |
ROIC/WACC2.9
WACC8.95%
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 of 1.19. This is comparable to the rest of the industry: NFLX outperforms 55.70% 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 (1.19) which is comparable to the rest of the industry.
- NFLX does not score too well on the current and quick ratio evaluation. However, as it has 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. NFLX Growth Analysis
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
- 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 18.40% yearly.
- Based on estimates for the next years, NFLX will show a quite strong growth in Revenue. The Revenue will grow by 10.43% on average per year.
EPS Next Y27.4%
EPS Next 2Y24.37%
EPS Next 3Y22.16%
EPS Next 5Y18.4%
Revenue Next Year13.44%
Revenue Next 2Y12.56%
Revenue Next 3Y11.86%
Revenue Next 5Y10.43%
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. NFLX Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 40.34 indicates a quite expensive valuation of NFLX.
- Compared to the rest of the industry, the Price/Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 74.68% of the companies listed in the same industry.
- NFLX's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.91.
- Based on the Price/Forward Earnings ratio of 31.70, the valuation of NFLX can be described as expensive.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 73.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.68, NFLX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.34 | ||
| Fwd PE | 31.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than 77.22% of the companies in the same industry.
- 70.89% 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 | 45.54 | ||
| EV/EBITDA | 14.5 |
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 22.16% in the coming years.
PEG (NY)1.47
PEG (5Y)1.23
EPS Next 2Y24.37%
EPS Next 3Y22.16%
5. NFLX Dividend Analysis
5.1 Amount
- No dividends for NFLX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NFLX Fundamentals: All Metrics, Ratios and Statistics
102.05
+2.66 (+2.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20 2026-01-20/amc
Earnings (Next)04-16 2026-04-16/amc
Inst Owners83.66%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap430.87B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts80.68
Price Target116.45 (14.11%)
Short Float %1.93%
Short Ratio1.59
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)0.86%
PT rev (3m)-11.07%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-5.9%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.34 | ||
| Fwd PE | 31.7 | ||
| P/S | 9.54 | ||
| P/FCF | 45.54 | ||
| P/OCF | 42.45 | ||
| P/B | 16.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.5 |
EPS(TTM)2.53
EY2.48%
EPS(NY)3.22
Fwd EY3.15%
FCF(TTM)2.24
FCFY2.2%
OCF(TTM)2.4
OCFY2.36%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.47
PEG (5Y)1.23
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 | 18.54 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 11.63 |
F-Score7
WACC8.95%
ROIC/WACC2.9
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 Y27.4%
EPS Next 2Y24.37%
EPS Next 3Y22.16%
EPS Next 5Y18.4%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.44%
Revenue Next 2Y12.56%
Revenue Next 3Y11.86%
Revenue Next 5Y10.43%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year28%
EBIT Next 3Y21.24%
EBIT Next 5Y18.31%
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 Fundamental Analysis 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 4 / 10 to NETFLIX INC (NFLX). This can be considered as Fairly Valued.
How profitable is NETFLIX INC (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 40.34 and the Price/Book (PB) ratio is 16.19.
What is the earnings growth outlook for NETFLIX INC?
The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 27.4% in the next year.