NETFLIX INC (NFLX) Fundamental Analysis & Valuation

NASDAQ:NFLX • US64110L1061

Current stock price

92.97 USD
-0.46 (-0.49%)
At close:
92.85 USD
-0.12 (-0.13%)
After Hours:

This NFLX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

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.
  • Each year in the past 5 years NFLX has been profitable.
  • In the past 5 years NFLX always reported a positive cash flow from operatings.
NFLX Yearly Net Income VS EBIT VS OCF VS FCFNFLX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • NFLX's Return On Assets of 19.75% is amongst the best of the industry. NFLX outperforms 94.94% of its industry peers.
  • The Return On Equity of NFLX (41.26%) is better than 96.20% of its industry peers.
  • NFLX has a Return On Invested Capital of 25.95%. This is amongst the best in the industry. NFLX outperforms 98.73% of its industry peers.
  • NFLX had an Average Return On Invested Capital over the past 3 years of 20.73%. This is significantly above the industry average of 7.48%.
  • The last Return On Invested Capital (25.95%) for NFLX is above the 3 year average (20.73%), which is a sign of increasing profitability.
Industry RankSector 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%
NFLX Yearly ROA, ROE, ROICNFLX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 24.30%, NFLX belongs to the top of the industry, outperforming 92.41% 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 97.47% of its industry peers.
  • In the last couple of years the Operating Margin of NFLX has grown nicely.
  • NFLX's Gross Margin of 48.49% is in line compared 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 RankSector 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%
NFLX Yearly Profit, Operating, Gross MarginsNFLX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. NFLX Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NFLX is creating value.
  • NFLX has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for NFLX has been reduced compared to 5 years ago.
  • Compared to 1 year ago, NFLX has an improved debt to assets ratio.
NFLX Yearly Shares OutstandingNFLX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
NFLX Yearly Total Debt VS Total AssetsNFLX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 10.88 indicates that NFLX is not in any danger for bankruptcy at the moment.
  • NFLX has a better Altman-Z score (10.88) than 98.73% of its industry peers.
  • 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.
  • With an excellent Debt to FCF ratio value of 1.53, NFLX belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
  • A Debt/Equity ratio of 0.51 indicates that 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 50.63% of its industry peers.
  • Although NFLX's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.51
Debt/FCF 1.53
Altman-Z 10.88
ROIC/WACC2.74
WACC9.46%
NFLX Yearly LT Debt VS Equity VS FCFNFLX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that NFLX should not have too much problems paying its short term obligations.
  • NFLX's Current ratio of 1.19 is in line compared 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.
  • The Quick ratio of NFLX (1.19) 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 RankSector Rank
Current Ratio 1.19
Quick Ratio 1.19
NFLX Yearly Current Assets VS Current LiabilitesNFLX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. NFLX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 27.43% over the past year.
  • 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.
  • 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

  • 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.
  • The Revenue is expected to grow by 10.43% on average over the next years. This is quite good.
EPS Next Y27.4%
EPS Next 2Y24.37%
EPS Next 3Y22.16%
EPS Next 5Y18.4%
Revenue Next Year13.33%
Revenue Next 2Y12.5%
Revenue Next 3Y11.79%
Revenue Next 5Y10.43%

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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
NFLX Yearly Revenue VS EstimatesNFLX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
NFLX Yearly EPS VS EstimatesNFLX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

More info and screens

Find the best growth stocksShow best growing peers

5

4. NFLX Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 36.75, NFLX can be considered very expensive at the moment.
  • NFLX's Price/Earnings ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 78.48% of the companies in the same industry.
  • NFLX is valuated rather expensively when we compare the Price/Earnings ratio to 24.75, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 28.88, which means the current valuation is very expensive for NFLX.
  • 75.95% of the companies in the same industry are more expensive than NFLX, based on the Price/Forward Earnings ratio.
  • NFLX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.75
Fwd PE 28.88
NFLX Price Earnings VS Forward Price EarningsNFLX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • NFLX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NFLX is cheaper than 75.95% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than the industry average as 70.89% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 41.49
EV/EBITDA 13.29
NFLX Per share dataNFLX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of NFLX 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)1.34
PEG (5Y)1.12
EPS Next 2Y24.37%
EPS Next 3Y22.16%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. NFLX Dividend Analysis

5.1 Amount

  • No dividends for NFLX!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

NFLX Fundamentals: All Metrics, Ratios and Statistics

NETFLIX INC

NASDAQ:NFLX (3/30/2026, 8:20:40 PM)

After market: 92.85 -0.12 (-0.13%)

92.97

-0.46 (-0.49%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20
Earnings (Next)04-16
Inst Owners83.66%
Inst Owner Change754.75%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap392.53B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts80.74
Price Target116.45 (25.26%)
Short Float %2.14%
Short Ratio1.73
Dividend
Industry RankSector 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)0.12%
EPS NQ rev (3m)-5.95%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)0.26%
Valuation
Industry RankSector Rank
PE 36.75
Fwd PE 28.88
P/S 8.69
P/FCF 41.49
P/OCF 38.68
P/B 14.75
P/tB N/A
EV/EBITDA 13.29
EPS(TTM)2.53
EY2.72%
EPS(NY)3.22
Fwd EY3.46%
FCF(TTM)2.24
FCFY2.41%
OCF(TTM)2.4
OCFY2.59%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.34
PEG (5Y)1.12
Graham Number18.94
Profitability
Industry RankSector 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 RankSector 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 10.88
F-Score7
WACC9.46%
ROIC/WACC2.74
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 Year13.33%
Revenue Next 2Y12.5%
Revenue Next 3Y11.79%
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 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 9 / 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 27.4% in the next year.