NETFLIX INC (NFLX) Fundamental Analysis & Valuation
NASDAQ:NFLX • US64110L1061
98.32 USD
-0.7 (-0.71%)
At close: Mar 9, 2026
98.2152 USD
-0.1 (-0.11%)
After Hours: 3/9/2026, 5:27:54 PM
This NFLX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. NFLX is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make NFLX suitable for growth and quality investing!
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.
- NFLX had positive earnings in each of the past 5 years.
- Each year in the past 5 years NFLX had a positive operating cash flow.
1.2 Ratios
- NFLX has a Return On Assets of 19.75%. This is amongst the best in the industry. NFLX outperforms 95.00% of its industry peers.
- With an excellent Return On Equity value of 41.26%, NFLX belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
- NFLX has a better Return On Invested Capital (25.95%) than 100.00% 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 7.34%.
- 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 93.75% of its industry peers.
- NFLX's Profit Margin has improved in the last couple of years.
- NFLX's Operating Margin of 29.49% is amongst the best of 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 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 | 29.49% | ||
| 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
- 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.
- The debt/assets ratio for NFLX has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.37 indicates that NFLX is not in any danger for bankruptcy at the moment.
- NFLX has a Altman-Z score of 11.37. This is amongst the best in the industry. NFLX outperforms 98.75% 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.
- NFLX has a Debt to FCF ratio of 1.53. This is amongst the best in the industry. NFLX outperforms 83.75% 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.
- The Debt to Equity ratio of NFLX (0.51) is comparable to the rest of the 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 | 11.37 |
ROIC/WACC2.57
WACC10.11%
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.
- 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 in line with its industry peers.
- 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
- The Earnings Per Share has grown by an impressive 27.43% over the past year.
- 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.
- Looking at the last year, NFLX shows a quite strong growth in Revenue. The Revenue has grown by 15.85% in the last year.
- The Revenue has been growing by 12.57% on average over the past years. This is quite good.
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 18.40% on average over the next years. This is quite good.
- 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 Y27.48%
EPS Next 2Y24.11%
EPS Next 3Y22.01%
EPS Next 5Y18.4%
Revenue Next Year13.45%
Revenue Next 2Y12.52%
Revenue Next 3Y11.63%
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.
4. NFLX Valuation Analysis
4.1 Price/Earnings Ratio
- NFLX is valuated quite expensively with a Price/Earnings ratio of 38.86.
- 76.25% of the companies in the same industry are more expensive than NFLX, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.29, NFLX is valued a bit more expensive.
- NFLX is valuated quite expensively with a Price/Forward Earnings ratio of 30.52.
- Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than 76.25% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NFLX to the average of the S&P500 Index (24.60), we can say NFLX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.86 | ||
| Fwd PE | 30.52 |
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 | 43.88 | ||
| EV/EBITDA | 14.08 |
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 22.01% in the coming years.
PEG (NY)1.41
PEG (5Y)1.18
EPS Next 2Y24.11%
EPS Next 3Y22.01%
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
98.32
-0.7 (-0.71%)
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 Owners83.66%
Inst Owner Change754.66%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap415.12B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts80.74
Price Target115.45 (17.42%)
Short Float %1.98%
Short Ratio1.66
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%
PT rev (3m)-16.44%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-6.24%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.86 | ||
| Fwd PE | 30.52 | ||
| P/S | 9.19 | ||
| P/FCF | 43.88 | ||
| P/OCF | 40.9 | ||
| P/B | 15.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.08 |
EPS(TTM)2.53
EY2.57%
EPS(NY)3.22
Fwd EY3.28%
FCF(TTM)2.24
FCFY2.28%
OCF(TTM)2.4
OCFY2.44%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.41
PEG (5Y)1.18
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 | 250 | ||
| Cash Conversion | 33.74% | ||
| Profit Quality | 86.16% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 11.37 |
F-Score7
WACC10.11%
ROIC/WACC2.57
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 Y27.48%
EPS Next 2Y24.11%
EPS Next 3Y22.01%
EPS Next 5Y18.4%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%17.61%
Revenue Next Year13.45%
Revenue Next 2Y12.52%
Revenue Next 3Y11.63%
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 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.
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 27.48% in the next year.