NETFLIX INC (NFLX) Stock Fundamental Analysis
NASDAQ:NFLX • US64110L1061
77.8793 USD
-1.74 (-2.19%)
Last: Feb 12, 2026, 09:40 AM
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. NFLX gets an excellent profitability rating and is at the same time showing great financial health properties. NFLX is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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
- Looking at the Return On Assets, with a value of 19.75%, NFLX belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 41.26%, NFLX belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
- NFLX has a better Return On Invested Capital (25.95%) than 98.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for NFLX is significantly above the industry average of 8.67%.
- 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
- With an excellent Profit Margin value of 24.30%, NFLX belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- 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.
- NFLX's Operating Margin has improved in the last couple of years.
- NFLX has a Gross Margin (48.49%) which is in line with 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. 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 more shares outstanding
- The number of shares outstanding for NFLX has been increased compared to 5 years ago.
- Compared to 1 year ago, NFLX has an improved debt to assets ratio.
2.2 Solvency
- NFLX has an Altman-Z score of 9.72. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 9.72, NFLX belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
- NFLX has a debt to FCF ratio of 1.53. This is a very positive value and a sign of high solvency as it would only need 1.53 years to pay back of all of its debts.
- NFLX's Debt to FCF ratio of 1.53 is amongst the best of the industry. NFLX outperforms 81.25% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.51, NFLX is in line with its industry, outperforming 48.75% of the companies in the same industry.
- 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 | 9.72 |
ROIC/WACC2.68
WACC9.68%
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.
- Looking at the Current ratio, with a value of 1.19, NFLX is in line with its industry, outperforming 55.00% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that NFLX should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
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.
- Measured over the past years, NFLX shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.92% on average per year.
- The Revenue has grown by 15.85% in the past year. This is quite good.
- NFLX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.57% yearly.
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
- The Earnings Per Share is expected to grow by 20.08% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.32% on average over the next years. This is quite good.
EPS Next Y26.69%
EPS Next 2Y24.07%
EPS Next 3Y21.94%
EPS Next 5Y20.08%
Revenue Next Year13.46%
Revenue Next 2Y12.55%
Revenue Next 3Y11.66%
Revenue Next 5Y10.32%
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 30.78, the valuation of NFLX can be described as expensive.
- NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 77.50% of the companies in the same industry.
- NFLX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.33, which indicates a rather expensive current valuation of NFLX.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 77.50% 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 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.78 | ||
| Fwd PE | 24.33 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NFLX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.98 | ||
| EV/EBITDA | 11.43 |
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 21.94% in the coming years.
PEG (NY)1.15
PEG (5Y)0.94
EPS Next 2Y24.07%
EPS Next 3Y21.94%
5. Dividend
5.1 Amount
- NFLX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:NFLX (2/12/2026, 9:40:09 AM)
77.8793
-1.74 (-2.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20 2026-01-20/amc
Earnings (Next)04-15 2026-04-15/amc
Inst Owners79.69%
Inst Owner Change190.71%
Ins Owners0.02%
Ins Owner Change15.03%
Market Cap330.93B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts79.61
Price Target115.46 (48.26%)
Short Float %1.66%
Short Ratio1.49
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)-11.83%
PT rev (3m)-91.63%
EPS NQ rev (1m)-6.07%
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)0.37%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.78 | ||
| Fwd PE | 24.33 | ||
| P/S | 7.32 | ||
| P/FCF | 34.98 | ||
| P/OCF | 32.61 | ||
| P/B | 12.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.43 |
EPS(TTM)2.53
EY3.25%
EPS(NY)3.2
Fwd EY4.11%
FCF(TTM)2.23
FCFY2.86%
OCF(TTM)2.39
OCFY3.07%
SpS10.63
BVpS6.26
TBVpS-1.45
PEG (NY)1.15
PEG (5Y)0.94
Graham Number18.88
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 | 250 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 9.72 |
F-Score7
WACC9.68%
ROIC/WACC2.68
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 5Y20.08%
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 5Y10.32%
EBIT growth 1Y27.92%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year27.15%
EBIT Next 3Y20.8%
EBIT Next 5Y18.03%
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 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 26.69% in the next year.