Netflix, Inc. provides entertainment services.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$589.35|
|52 Week High||US$463.41|
|52 Week Low||US$615.60|
|1 Month Change||7.77%|
|3 Month Change||18.58%|
|1 Year Change||25.40%|
|3 Year Change||63.17%|
|5 Year Change||514.29%|
|Change since IPO||49,159.13%|
Recent News & Updates
Netflix Hoping To Finally Achieve The One Accomplishment That Has Eluded Them
Netflix has been the leader in streaming for well over a decade, setting the pace for all that follow – but one area still gives them trouble – awards. By competing for awards, Netflix is able to lure talent while also sending a message to subscribers that it is home for quality content… but it’s also a pride thing. Netflix has spent a lot of investor money on lavish awards campaigns, and while it’s had notable successes, the top prizes have noticeably eluded them – but not their rivals. Some attribute the losses to voters unhappy with Netflix competing in both the film and TV space, when it is primarily a streaming TV service with a limited theatrical presence. Investors could see Netflix finally get the big win this year as drama “The Crown” tackled a key period in Royal history that voters may not be able to resist.
Netflix Stock: Gamma Squeeze May Be Ready To Pop
Netflix stock has surged nearly 12% since Aug. 26. It appears to be caught in the middle of gamma squeeze. The squeeze may lead to nothing more than failed breakout attempt.
The Value and Growth Drivers that Justify Netflix's (NASDAQ:NFLX) Current Valuation
Netflix (NASDAQ:NFLX) is in the middle of the streaming wars, and the stock has recently entered into all-time highs, coupled with concerns of peaking membership subscriptions in the US and competitor pressure. In this article we will look at how efficiently is the management team reinvesting into the business, how can that translate into growth, and where can future growth come from.
Netflix: Price Hikes Can't Go On Forever
Netflix has been an exceptional growth story. But as subscriber growth rates peak and competitive pressures mount, the company's long-term prospects become somewhat shaky, even as near-term prospects remain highly bullish. I move from a bullish to a neutral long-term prospects position until we get more information on their competitors' performances.
|NFLX||US Entertainment||US Market|
Return vs Industry: NFLX underperformed the US Entertainment industry which returned 30.1% over the past year.
Return vs Market: NFLX underperformed the US Market which returned 33.8% over the past year.
Stable Share Price: NFLX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NFLX's weekly volatility (3%) has been stable over the past year.
About the Company
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices.
Netflix Fundamentals Summary
|NFLX fundamental statistics|
Is NFLX overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|NFLX income statement (TTM)|
|Cost of Revenue||US$15.92b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 19, 2021
|Earnings per share (EPS)||9.92|
|Net Profit Margin||15.92%|
How did NFLX perform over the long term?See historical performance and comparison
Is Netflix undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NFLX ($589.35) is trading below our estimate of fair value ($688.93)
Significantly Below Fair Value: NFLX is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NFLX is poor value based on its PE Ratio (59.4x) compared to the US Entertainment industry average (29.2x).
PE vs Market: NFLX is poor value based on its PE Ratio (59.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: NFLX is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: NFLX is overvalued based on its PB Ratio (18.8x) compared to the US Entertainment industry average (4.3x).
How is Netflix forecast to perform in the next 1 to 3 years based on estimates from 42 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NFLX's forecast earnings growth (23% per year) is above the savings rate (2%).
Earnings vs Market: NFLX's earnings (23% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NFLX's revenue (13.6% per year) is forecast to grow faster than the US market (9.8% per year).
High Growth Revenue: NFLX's revenue (13.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NFLX's Return on Equity is forecast to be high in 3 years time (34.5%)
How has Netflix performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NFLX has high quality earnings.
Growing Profit Margin: NFLX's current net profit margins (15.9%) are higher than last year (11.9%).
Past Earnings Growth Analysis
Earnings Trend: NFLX's earnings have grown significantly by 51% per year over the past 5 years.
Accelerating Growth: NFLX's earnings growth over the past year (63.8%) exceeds its 5-year average (51% per year).
Earnings vs Industry: NFLX earnings growth over the past year (63.8%) exceeded the Entertainment industry 10.8%.
Return on Equity
High ROE: Whilst NFLX's Return on Equity (31.68%) is high, this metric is skewed due to their high level of debt.
How is Netflix's financial position?
Financial Position Analysis
Short Term Liabilities: NFLX's short term assets ($9.6B) exceed its short term liabilities ($7.8B).
Long Term Liabilities: NFLX's short term assets ($9.6B) do not cover its long term liabilities ($19.3B).
Debt to Equity History and Analysis
Debt Level: NFLX's debt to equity ratio (112.7%) is considered high.
Reducing Debt: NFLX's debt to equity ratio has increased from 97.4% to 112.7% over the past 5 years.
Debt Coverage: NFLX's debt is not well covered by operating cash flow (11.8%).
Interest Coverage: NFLX's interest payments on its debt are well covered by EBIT (8x coverage).
What is Netflix current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NFLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NFLX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NFLX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NFLX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NFLX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Wilmot Hastings (61 yo)
Mr. Wilmot Reed Hastings, Jr., is President of Netflix, Inc. and has been its Chairman from 1997. Mr. Hastings co-founded Netflix in 1997. In 1991, Mr. Hastings founded Pure Software.He served as Chief Ex...
CEO Compensation Analysis
Compensation vs Market: Wilmot's total compensation ($USD43.23M) is above average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Wilmot's compensation has been consistent with company performance over the past year.
Experienced Management: NFLX's management team is considered experienced (2.3 years average tenure).
Experienced Board: NFLX's board of directors are considered experienced (6.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Netflix, Inc.'s employee growth, exchange listings and data sources
- Name: Netflix, Inc.
- Ticker: NFLX
- Exchange: NasdaqGS
- Founded: 1997
- Industry: Movies and Entertainment
- Sector: Media
- Market Cap: US$260.844b
- Shares outstanding: 442.60m
- Website: https://www.netflix.com
Number of Employees
- Netflix, Inc.
- 100 Winchester Circle
- Los Gatos
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/19 22:02|
|End of Day Share Price||2021/09/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.