NETFLIX INC (NFLX) Fundamental Analysis & Valuation

NASDAQ:NFLX • US64110L1061

Current stock price

91.82 USD
+0.08 (+0.09%)
At close:
92.4197 USD
+0.6 (+0.65%)
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.
  • NFLX had a positive operating cash flow in the past year.
  • Each year in the past 5 years NFLX has been profitable.
  • NFLX had a positive operating cash flow in each of the past 5 years.
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.
  • Looking at the Return On Equity, with a value of 41.26%, NFLX belongs to the top of the industry, outperforming 96.20% of the companies in the same industry.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for NFLX is significantly above the industry average of 7.46%.
  • The 3 year average ROIC (20.73%) for NFLX is below the current ROIC(25.95%), indicating increased profibility in the last year.
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.
  • 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 (48.49%) which is comparable to the rest of the industry.
  • 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.
  • Compared to 1 year ago, NFLX has less shares outstanding
  • 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.
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 10.73 indicates that NFLX is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of NFLX (10.73) is better than 98.73% of its industry peers.
  • 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 has a Debt to FCF ratio of 1.53. This is amongst the best in the industry. NFLX outperforms 84.81% of its industry peers.
  • A Debt/Equity ratio of 0.51 indicates that NFLX is somewhat dependend on debt financing.
  • The Debt to Equity ratio of NFLX (0.51) is comparable to the rest of the industry.
  • 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 10.73
ROIC/WACC2.54
WACC10.2%
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

  • 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 54.43% 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.
  • With a Quick ratio value of 1.19, NFLX perfoms like the industry average, outperforming 56.96% of the companies in the same 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
  • NFLX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.85%.
  • 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 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

  • 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.
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

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Find the best growth stocksShow best growing peers

5

4. NFLX Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 36.29 indicates a quite expensive valuation of NFLX.
  • Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than 78.48% of the companies in the same industry.
  • NFLX is valuated rather expensively when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 28.50, NFLX can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 75.95% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, NFLX is valued a bit more expensive.
Industry RankSector Rank
PE 36.29
Fwd PE 28.5
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 77.22% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of NFLX indicates a somewhat cheap valuation: NFLX is cheaper than 70.89% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 40.98
EV/EBITDA 13.05
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.
  • 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)1.32
PEG (5Y)1.1
EPS Next 2Y24.11%
EPS Next 3Y22.01%

More info and screens

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

0

5. NFLX Dividend Analysis

5.1 Amount

  • NFLX does not give a dividend.
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 (3/20/2026, 8:12:57 PM)

After market: 92.4197 +0.6 (+0.65%)

91.82

+0.08 (+0.09%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)01-20
Earnings (Next)04-15
Inst Owners83.66%
Inst Owner Change754.7%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap387.68B
Revenue(TTM)45.18B
Net Income(TTM)10.98B
Analysts80.74
Price Target115.45 (25.74%)
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%
PT rev (3m)-16.44%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 36.29
Fwd PE 28.5
P/S 8.58
P/FCF 40.98
P/OCF 38.2
P/B 14.57
P/tB N/A
EV/EBITDA 13.05
EPS(TTM)2.53
EY2.76%
EPS(NY)3.22
Fwd EY3.51%
FCF(TTM)2.24
FCFY2.44%
OCF(TTM)2.4
OCFY2.62%
SpS10.7
BVpS6.3
TBVpS-1.46
PEG (NY)1.32
PEG (5Y)1.1
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 10.73
F-Score7
WACC10.2%
ROIC/WACC2.54
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 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 27.48% in the next year.