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Netflix

Nasdaq:NFLX
Snowflake Description

High growth potential with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NFLX
Nasdaq
$167B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Netflix, Inc. provides Internet entertainment services. The last earnings update was 5 days ago. More info.


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NFLX Share Price and Events
7 Day Returns
6.2%
NasdaqGS:NFLX
1.4%
US Entertainment
-0.1%
US Market
1 Year Returns
24.4%
NasdaqGS:NFLX
16.3%
US Entertainment
7.6%
US Market
NFLX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Netflix (NFLX) 6.2% 5.8% 18.6% 24.4% 313.2% 735.7%
US Entertainment 1.4% 7.8% 12.6% 16.3% 68.5% 105%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • NFLX outperformed the Entertainment industry which returned 16.3% over the past year.
  • NFLX outperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
NFLX
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Netflix undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Netflix to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Netflix.

NasdaqGS:NFLX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 36 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NFLX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.962 (1 + (1- 21%) (6.7%))
1.009
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.009 * 5.96%)
8.74%

Discounted Cash Flow Calculation for NasdaqGS:NFLX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Netflix is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:NFLX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.74%)
2019 -3,252.32 Analyst x23 -2,990.84
2020 -2,242.21 Analyst x21 -1,896.17
2021 -872.48 Analyst x8 -678.51
2022 1,765.05 Analyst x7 1,262.29
2023 4,547.76 Analyst x8 2,990.91
2024 7,393.42 Est @ 62.57% 4,471.48
2025 10,692.35 Est @ 44.62% 5,946.76
2026 14,119.56 Est @ 32.05% 7,221.54
2027 17,403.20 Est @ 23.26% 8,185.38
2028 20,378.84 Est @ 17.1% 8,814.35
Present value of next 10 years cash flows $33,327.18
NasdaqGS:NFLX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $20,378.84 × (1 + 2.73%) ÷ (8.74% – 2.73%)
$348,199.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $348,199.80 ÷ (1 + 8.74%)10
$150,604.92
NasdaqGS:NFLX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $33,327.18 + $150,604.92
$183,932.10
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $183,932.10 / 437.19
$420.71
NasdaqGS:NFLX Discount to Share Price
Calculation Result
Value per share (USD) From above. $420.71
Current discount Discount to share price of $381.89
= -1 x ($381.89 - $420.71) / $420.71
9.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Netflix is available for.
Intrinsic value
9%
Share price is $381.89 vs Future cash flow value of $420.71
Current Discount Checks
For Netflix to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Netflix's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Netflix's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Netflix's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Netflix's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NFLX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.90
NasdaqGS:NFLX Share Price ** NasdaqGS (2019-04-23) in USD $381.89
United States of America Entertainment Industry PE Ratio Median Figure of 23 Publicly-Listed Entertainment Companies 22.3x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Netflix.

NasdaqGS:NFLX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NFLX Share Price ÷ EPS (both in USD)

= 381.89 ÷ 2.90

131.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netflix is overvalued based on earnings compared to the US Entertainment industry average.
  • Netflix is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Netflix's expected growth come at a high price?
Raw Data
NasdaqGS:NFLX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 131.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts
37.6%per year
United States of America Entertainment Industry PEG Ratio Median Figure of 19 Publicly-Listed Entertainment Companies 2.56x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NasdaqGS:NFLX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 131.63x ÷ 37.6%

3.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netflix is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Netflix's assets?
Raw Data
NasdaqGS:NFLX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $13.04
NasdaqGS:NFLX Share Price * NasdaqGS (2019-04-23) in USD $381.89
United States of America Entertainment Industry PB Ratio Median Figure of 55 Publicly-Listed Entertainment Companies 3.05x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NasdaqGS:NFLX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NFLX Share Price ÷ Book Value per Share (both in USD)

= 381.89 ÷ 13.04

29.28x

* Primary Listing of Netflix.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netflix is overvalued based on assets compared to the US Entertainment industry average.
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Value checks
We assess Netflix's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Netflix has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Netflix expected to perform in the next 1 to 3 years based on estimates from 36 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
37.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Netflix expected to grow at an attractive rate?
  • Netflix's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Netflix's earnings growth is expected to exceed the United States of America market average.
  • Netflix's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NFLX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NFLX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts 37.6%
NasdaqGS:NFLX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts 17.6%
United States of America Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NFLX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NFLX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 39,477 5,023 7,531 9
2022-12-31 34,898 2,327 5,757 12
2021-12-31 30,283 -244 4,296 20
2020-12-31 25,076 -2,092 2,728 35
2019-12-31 20,213 -3,151 1,552 36
NasdaqGS:NFLX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 16,614 -2,824 1,265
2018-12-31 15,794 -2,680 1,211
2018-09-30 14,893 -1,933 1,263
2018-06-30 13,879 -1,663 990
2018-03-31 12,757 -1,679 671
2017-12-31 11,693 -1,786 559
2017-09-30 10,884 -1,855 440
2017-06-30 10,190 -1,897 362
2017-03-31 9,510 -1,589 337
2016-12-31 8,831 -1,474 187
2016-09-30 8,176 -1,162 163
2016-06-30 7,625 -896 141

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Netflix's earnings are expected to grow significantly at over 20% yearly.
  • Netflix's revenue is expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NFLX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below

All data from Netflix Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NFLX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 16.42 21.99 12.72 7.00
2022-12-31 12.70 16.94 8.89 10.00
2021-12-31 9.34 11.26 7.01 17.00
2020-12-31 5.87 7.01 3.88 35.00
2019-12-31 3.44 4.13 2.95 34.00
NasdaqGS:NFLX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.90
2018-12-31 2.78
2018-09-30 2.91
2018-06-30 2.28
2018-03-31 1.55
2017-12-31 1.29
2017-09-30 1.02
2017-06-30 0.84
2017-03-31 0.79
2016-12-31 0.44
2016-09-30 0.38
2016-06-30 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Netflix is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Netflix's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Netflix has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Netflix performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Netflix's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Netflix has delivered over 20% year on year earnings growth in the past 5 years.
  • Netflix's 1-year earnings growth exceeds its 5-year average (88.6% vs 47.1%)
  • Netflix's earnings growth has exceeded the US Entertainment industry average in the past year (88.6% vs 19.4%).
Earnings and Revenue History
Netflix's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Netflix Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NFLX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 16,614.48 1,265.17 3,146.90 1,312.27
2018-12-31 15,794.34 1,211.24 2,999.76 1,221.81
2018-09-30 14,893.26 1,262.83 2,674.18 1,100.83
2018-06-30 13,878.74 989.58 2,422.86 1,029.04
2018-03-31 12,756.93 670.83 2,073.15 978.91
2017-12-31 11,692.71 558.93 1,867.32 953.71
2017-09-30 10,884.50 440.16 1,925.84 1,004.62
2017-06-30 10,189.83 362.09 1,833.03 965.48
2017-03-31 9,509.57 337.24 1,699.20 905.70
2016-12-31 8,830.67 186.68 1,413.18 780.23
2016-09-30 8,176.46 163.11 1,458.10 807.77
2016-06-30 7,624.63 141.02 1,341.88 763.43
2016-03-31 7,164.12 126.60 1,280.49 711.19
2015-12-31 6,779.51 122.64 1,231.42 650.79
2015-09-30 6,440.91 162.83 1,177.68 595.81
2015-06-30 6,111.98 192.70 1,082.36 545.00
2015-03-31 5,807.70 237.38 970.10 505.12
2014-12-31 5,504.66 266.80 876.93 472.32
2014-09-30 5,195.16 231.85 771.59 444.57
2014-06-30 4,891.73 204.38 702.35 419.16
2014-03-31 4,620.69 162.83 680.03 397.10
2013-12-31 4,374.56 112.40 650.24 378.77
2013-09-30 4,144.57 71.88 623.70 362.78
2013-06-30 3,943.66 47.73 613.06 349.76
2013-03-31 3,763.45 24.43 602.64 338.18
2012-12-31 3,609.28 17.15 578.22 329.01
2012-09-30 3,539.62 44.47 605.59 327.65
2012-06-30 3,456.37 99.26 580.69 314.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Netflix has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Netflix used its assets less efficiently than the US Entertainment industry average last year based on Return on Assets.
  • Netflix has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Netflix's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Netflix has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Netflix's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Netflix's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Netflix's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Netflix's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Netflix's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Netflix Company Filings, last reported 3 weeks ago.

NasdaqGS:NFLX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,703.06 11,192.55 3,348.56
2018-12-31 5,238.77 10,360.06 3,794.48
2018-09-30 5,009.65 8,336.59 3,067.53
2018-06-30 4,496.60 8,342.07 3,906.36
2018-03-31 4,020.73 6,542.37 2,593.67
2017-12-31 3,581.96 6,499.43 2,822.80
2017-09-30 3,327.36 4,888.78 1,746.47
2017-06-30 3,112.50 4,836.50 2,164.90
2017-03-31 2,973.68 3,383.33 1,341.23
2016-12-31 2,679.80 3,364.31 1,733.78
2016-09-30 2,528.97 2,373.97 1,343.26
2016-06-30 2,415.83 2,373.09 1,834.23
2016-03-31 2,317.23 2,372.22 2,072.47
2015-12-31 2,223.43 2,371.36 2,310.72
2015-09-30 2,167.32 2,421.80 2,609.64
2015-06-30 2,032.08 2,408.10 2,796.76
2015-03-31 1,909.21 2,409.00 2,957.71
2014-12-31 1,857.71 885.85 1,608.50
2014-09-30 1,724.87 910.10 1,666.82
2014-06-30 1,609.71 910.90 1,714.37
2014-03-31 1,478.36 911.30 1,668.24
2013-12-31 1,333.56 500.00 1,200.41
2013-09-30 1,204.37 512.80 1,134.99
2013-06-30 1,105.62 563.40 1,080.11
2013-03-31 812.92 777.60 1,025.87
2012-12-31 744.67 400.00 748.08
2012-09-30 716.84 416.19 798.36
2012-06-30 688.23 417.27 813.34
  • Netflix's level of debt (196.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (61.6% vs 196.3% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Netflix's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Netflix has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Netflix's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Netflix dividends. Estimated to be 0% next year.
If you bought $2,000 of Netflix shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Netflix's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Netflix's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NFLX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
United States of America Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NFLX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 7.00
2020-12-31 0.00 8.00
2019-12-31 0.00 8.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Netflix has not reported any payouts.
  • Unable to verify if Netflix's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Netflix's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Netflix has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Netflix's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Netflix's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Netflix afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Netflix has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Netflix's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wilmot Hastings
COMPENSATION $24,377,499
AGE 58
TENURE AS CEO 20.6 years
CEO Bio

Mr. Wilmot Reed Hastings, Jr., is President of Netflix, Inc. and has been its Chairman and Chief Executive Officer from 1997 and September 1998 respectively. Mr. Hastings co-founded Netflix in 1997. In 1991, Mr. Hastings founded Pure Software. He is an active educational philanthropist and served on the California State Board of Education from 2000 to 2004. He is on the board of several educational organizations including CCSA, DreamBox Learning, KIPP, and Pahara. He serves as Director of Facebook since June 2011. He was on the Board of Microsoft from 2007 to 2012. He received a BA from Bowdoin College in 1983, and an MSCS in Artificial Intelligence from Stanford University in 1988. Between Bowdoin and Stanford, he served in the Peace Corps as a high school math teacher in Swaziland.

CEO Compensation
  • Wilmot's compensation has been consistent with company performance over the past year.
  • Wilmot's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Netflix management team in years:

4.3
Average Tenure
48
Average Age
  • The tenure for the Netflix management team is about average.
Management Team

Wilmot Hastings

TITLE
Co-Founder
COMPENSATION
$24M
AGE
58
TENURE
20.6 yrs

David Hyman

TITLE
General Counsel & Secretary
COMPENSATION
$5M
AGE
52
TENURE
17.3 yrs

Ted Sarandos

TITLE
Chief Content Officer
COMPENSATION
$22M
AGE
53
TENURE
19.1 yrs

Greg Peters

TITLE
Chief Product Officer
COMPENSATION
$9M
AGE
47
TENURE
5.8 yrs

Spencer Neumann

TITLE
Chief Financial Officer
AGE
48
TENURE
0.3 yrs

Spencer Wang

TITLE
Vice President of Finance & Investor Relations
TENURE
4.3 yrs

Rachel Whetstone

TITLE
Chief Communications Officer
TENURE
0.7 yrs

Bill Holmes

TITLE
Chief Business Development Officer
AGE
48

Jessica Neal

TITLE
Chief Talent Officer
AGE
41
TENURE
1.5 yrs

Christie Fleischer

TITLE
Global Head of Consumer Products
TENURE
0.6 yrs
Board of Directors Tenure

Average tenure and age of the Netflix board of directors in years:

7.3
Average Tenure
58
Average Age
  • The tenure for the Netflix board of directors is about average.
Board of Directors

Wilmot Hastings

TITLE
Co-Founder
COMPENSATION
$24M
AGE
58
TENURE
22.3 yrs

Jay Hoag

TITLE
Lead Independent Director
COMPENSATION
$336K
AGE
60

Tim Haley

TITLE
Director
COMPENSATION
$336K
AGE
62
TENURE
20.8 yrs

Ann Mather

TITLE
Director
COMPENSATION
$336K
AGE
58
TENURE
8.6 yrs

Leslie Kilgore

TITLE
Director
COMPENSATION
$336K
AGE
53
TENURE
7.3 yrs

Rich Barton

TITLE
Director
COMPENSATION
$336K
AGE
50
TENURE
16.9 yrs

Anne Sweeney

TITLE
Director
COMPENSATION
$336K
AGE
60
TENURE
4.1 yrs

Brad Smith

TITLE
Director
COMPENSATION
$336K
AGE
59
TENURE
4.1 yrs

Rodolphe Belmer

TITLE
Director
AGE
49
TENURE
1.3 yrs

Susan Rice

TITLE
Director
AGE
53
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Netflix's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Netflix has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Netflix, Inc.'s (NASDAQ:NFLX) ROE Of 23% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Netflix has a return on equity of 23% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Netflix, Inc.'s (NASDAQ:NFLX) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other large companies. … How Does Wilmot Hastings's Compensation Compare With Similar Sized Companies. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m

Simply Wall St -

Are Netflix, Inc.’s Returns On Capital Worth Investigating?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Why Netflix, Inc. (NASDAQ:NFLX) Could Be Worth Watching

The company's stock. … saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price

Simply Wall St -

Could Netflix, Inc.'s (NASDAQ:NFLX) Investor Composition Influence The Stock Price?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Netflix, Inc. (NASDAQ:NFLX): What Can We Expect From This High Growth Stock?

The latest earnings release Netflix, Inc.'s (NASDAQ:NFLX) announced in December 2018a … revealed

Simply Wall St -

Should You Be Pleased About The CEO Pay At Netflix Inc's (NASDAQ:NFLX)

This analysis aims first to contrast CEO compensation with other large companies. … How Does Wilmot Hastings's Compensation Compare With Similar Sized Companies. … Our data indicates that Netflix Inc is worth US$116b, and total annual CEO compensation is US$24m.

Simply Wall St -

Netflix Inc (NASDAQ:NFLX): The Return Story

and want to better understand how you can grow your money by investing in Netflix Inc (NASDAQ:NFLX). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Netflix, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

What Kind Of Shareholder Owns Most Netflix Inc (NASDAQ:NFLX) Stock?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that have been privatized tend to have low insider ownership. … Companies of this size are usually well known to retail investors, too.

Simply Wall St -

How Did Netflix Inc's (NASDAQ:NFLX) 22.01% ROE Fare Against The Industry?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Netflix Inc (NASDAQ:NFLX) delivered an ROE of 22.01% over the past 12 months, which is an impressive feat relative to its industry average of 16.44% during the same period. … See our latest analysis for Netflix

Simply Wall St -

Company Info

Description

Netflix, Inc. provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. 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 screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 139 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

Details
Name: Netflix, Inc.
NFLX
Exchange: NasdaqGS
Founded: 1997
$166,959,211,253
437,191,891
Website: http://www.netflix.com
Address: Netflix, Inc.
100 Winchester Circle,
Los Gatos,
California, 95032,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NFLX Common Stock Nasdaq Global Select US USD 23. May 2002
DB NFC Common Stock Deutsche Boerse AG DE EUR 23. May 2002
XTRA NFC Common Stock XETRA Trading Platform DE EUR 23. May 2002
LSE 0QYI Common Stock London Stock Exchange GB USD 23. May 2002
SWX NFLX Common Stock SIX Swiss Exchange CH CHF 23. May 2002
BIT NFLX Common Stock Borsa Italiana IT EUR 23. May 2002
WBAG NFLX Common Stock Wiener Boerse AG AT EUR 23. May 2002
BMV NFLX * Common Stock Bolsa Mexicana de Valores MX MXN 23. May 2002
BVL NFLX Common Stock Bolsa de Valores de Lima PE USD 23. May 2002
BOVESPA NFLX34 BDR EACH REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 23. Aug 2012
BASE NFLX CEDEAR EACH 16 REP 1 COM USD0.001 Buenos Aires Stock Exchange AR ARS 11. Apr 2019
Number of employees
Current staff
Staff numbers
7,100
Netflix employees.
Industry
Movies and Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:41
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/04/18
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.