NETFLIX INC (NFLX) Fundamental Analysis & Valuation

NASDAQ:NFLX • US64110L1061

Current stock price

92.12 USD
-0.15 (-0.16%)
At close:
91.13 USD
-0.99 (-1.07%)
Pre-Market:

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

8

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.
  • 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 has a Return On Assets of 21.92%. This is amongst the best in the industry. NFLX outperforms 96.20% of its industry peers.
  • The Return On Equity of NFLX (42.97%) is better than 97.47% of its industry peers.
  • With an excellent Return On Invested Capital value of 24.76%, NFLX belongs to the best of the industry, outperforming 97.47% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for NFLX is significantly below the industry average of 159.06%.
  • The last Return On Invested Capital (24.76%) for NFLX is above the 3 year average (20.73%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 21.92%
ROE 42.97%
ROIC 24.76%
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

  • NFLX has a Profit Margin of 28.52%. This is amongst the best in the industry. NFLX outperforms 94.94% of its industry peers.
  • NFLX's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 29.72%, NFLX belongs to the top 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 (49.03%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of NFLX has grown nicely.
Industry RankSector Rank
OM 29.72%
PM (TTM) 28.52%
GM 49.03%
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

8

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.
  • 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.
  • The debt/assets ratio for NFLX has been reduced compared to a year ago.
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

  • NFLX has an Altman-Z score of 10.52. This indicates that NFLX is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of NFLX (10.52) is better than 97.47% of its industry peers.
  • NFLX has a debt to FCF ratio of 1.21. This is a very positive value and a sign of high solvency as it would only need 1.21 years to pay back of all of its debts.
  • NFLX has a better Debt to FCF ratio (1.21) than 82.28% of its industry peers.
  • A Debt/Equity ratio of 0.43 indicates that NFLX is not too dependend on debt financing.
  • The Debt to Equity ratio of NFLX (0.43) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.21
Altman-Z 10.52
ROIC/WACC2.77
WACC8.95%
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 1.41 indicates that NFLX should not have too much problems paying its short term obligations.
  • NFLX's Current ratio of 1.41 is fine compared to the rest of the industry. NFLX outperforms 62.03% of its industry peers.
  • A Quick Ratio of 1.41 indicates that NFLX should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.41, NFLX is doing good in the industry, outperforming 63.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 1.41
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

8

3. NFLX Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 21.27% 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 16.72% in the last year.
  • 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)21.27%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%5.9%
Revenue 1Y (TTM)16.72%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%16.19%

3.2 Future

  • The Earnings Per Share is expected to grow by 20.15% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 10.66% on average over the next years. This is quite good.
EPS Next Y28.18%
EPS Next 2Y24.81%
EPS Next 3Y22.64%
EPS Next 5Y20.15%
Revenue Next Year13.98%
Revenue Next 2Y12.85%
Revenue Next 3Y11.93%
Revenue Next 5Y10.66%

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.
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

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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 35.84 indicates a quite expensive valuation of NFLX.
  • Based on the Price/Earnings ratio, NFLX is valued a bit cheaper than 79.75% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.54. NFLX is valued slightly more expensive when compared to this.
  • Based on the Price/Forward Earnings ratio of 23.40, the valuation of NFLX can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, NFLX is valued a bit cheaper than the industry average as 79.75% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of NFLX to the average of the S&P500 Index (21.68), we can say NFLX is valued inline with the index average.
Industry RankSector Rank
PE 35.84
Fwd PE 23.4
NFLX Price Earnings VS Forward Price EarningsNFLX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 79.75% of the companies in the same industry are more expensive than NFLX, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, NFLX is valued a bit cheaper than 70.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.7
EV/EBITDA 12.57
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

  • NFLX's 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.
  • NFLX's earnings are expected to grow with 22.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)1.09
EPS Next 2Y24.81%
EPS Next 3Y22.64%

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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%

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Find the best dividend stocksShow peers with best dividend

NFLX Fundamentals: All Metrics, Ratios and Statistics

NETFLIX INC

NASDAQ:NFLX (4/29/2026, 8:00:01 PM)

Premarket: 91.13 -0.99 (-1.07%)

92.12

-0.15 (-0.16%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Industry Strength49.69
Industry Growth57.76
Earnings (Last)04-16
Earnings (Next)07-15
Inst Owners83.79%
Inst Owner Change-0.14%
Ins Owners0.03%
Ins Owner Change12.24%
Market Cap388.95B
Revenue(TTM)46.89B
Net Income(TTM)13.37B
Analysts80.68
Price Target117.02 (27.03%)
Short Float %1.86%
Short Ratio1.68
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)-5.33%
Min EPS beat(2)-10.16%
Max EPS beat(2)-0.51%
EPS beat(4)0
Avg EPS beat(4)-7.11%
Min EPS beat(4)-17.39%
Max EPS beat(4)-0.4%
EPS beat(8)3
Avg EPS beat(8)-1.37%
EPS beat(12)6
Avg EPS beat(12)1.2%
EPS beat(16)8
Avg EPS beat(16)-0.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)-1.29%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-1.29%
Revenue beat(8)0
Avg Revenue beat(8)-1.49%
Revenue beat(12)0
Avg Revenue beat(12)-1.56%
Revenue beat(16)0
Avg Revenue beat(16)-1.65%
PT rev (1m)1.35%
PT rev (3m)-9.99%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-4.83%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-1.92%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.24%
Valuation
Industry RankSector Rank
PE 35.84
Fwd PE 23.4
P/S 8.29
P/FCF 32.7
P/OCF 30.75
P/B 12.5
P/tB N/A
EV/EBITDA 12.57
EPS(TTM)2.57
EY2.79%
EPS(NY)3.94
Fwd EY4.27%
FCF(TTM)2.82
FCFY3.06%
OCF(TTM)3
OCFY3.25%
SpS11.11
BVpS7.37
TBVpS-0.53
PEG (NY)1.27
PEG (5Y)1.09
Graham Number20.6469 (-77.59%)
Profitability
Industry RankSector Rank
ROA 21.92%
ROE 42.97%
ROCE 28.51%
ROIC 24.76%
ROICexc 33.08%
ROICexgc 376.01%
OM 29.72%
PM (TTM) 28.52%
GM 49.03%
FCFM 25.37%
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 Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.21
Debt/EBITDA 0.43
Cap/Depr 4.4%
Cap/Sales 1.61%
Interest Coverage 250
Cash Conversion 40.67%
Profit Quality 88.94%
Current Ratio 1.41
Quick Ratio 1.41
Altman-Z 10.52
F-Score7
WACC8.95%
ROIC/WACC2.77
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)21.27%
EPS 3Y36.44%
EPS 5Y32.92%
EPS Q2Q%5.9%
EPS Next Y28.18%
EPS Next 2Y24.81%
EPS Next 3Y22.64%
EPS Next 5Y20.15%
Revenue 1Y (TTM)16.72%
Revenue growth 3Y12.64%
Revenue growth 5Y12.57%
Sales Q2Q%16.19%
Revenue Next Year13.98%
Revenue Next 2Y12.85%
Revenue Next 3Y11.93%
Revenue Next 5Y10.66%
EBIT growth 1Y25.19%
EBIT growth 3Y33.25%
EBIT growth 5Y18.57%
EBIT Next Year28.05%
EBIT Next 3Y21.23%
EBIT Next 5Y18.57%
FCF growth 1Y71.24%
FCF growth 3Y80.14%
FCF growth 5Y37.44%
OCF growth 1Y73.1%
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.


How profitable is NETFLIX INC (NFLX) stock?

NETFLIX INC (NFLX) has a profitability rating of 8 / 10.


What are the PE and PB ratios of NETFLIX INC (NFLX) stock?

The Price/Earnings (PE) ratio for NETFLIX INC (NFLX) is 35.84 and the Price/Book (PB) ratio is 12.5.


What is the earnings growth outlook for NETFLIX INC?

The Earnings per Share (EPS) of NETFLIX INC (NFLX) is expected to grow by 28.18% in the next year.