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NFLX

NetflixNasdaqGS:NFLX Stock Report

Market Cap

US$294.8b

7D

-1.9%

1Y

35.5%

Updated

27 Nov, 2021

Data

Company Financials +
NFLX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance4/6
Financial Health2/6
Dividends0/6

NFLX Stock Overview

Netflix, Inc. provides entertainment services.

Netflix Competitors

Walt Disney

NYSE:DIS

US$269.2b

Spotify Technology

NYSE:SPOT

US$48.1b

iQIYI

NasdaqGS:IQ

US$5.2b

World Wrestling Entertainment

NYSE:WWE

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Netflix
Historical stock prices
Current Share PriceUS$665.64
52 Week HighUS$700.99
52 Week LowUS$478.54
Beta0.81
1 Month Change-1.25%
3 Month Change19.09%
1 Year Change35.47%
3 Year Change132.64%
5 Year Change450.98%
Change since IPO55,535.61%

Recent News & Updates

Nov 19
These 4 Measures Indicate That Netflix (NASDAQ:NFLX) Is Using Debt Reasonably Well

These 4 Measures Indicate That Netflix (NASDAQ:NFLX) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Nov 01

Netflix's Squid Game Success, The Content Slate, And The Challenges To Look Out For

Netflix reported better-than-expected subscriber additions for the third quarter, and there's reason to be excited about the upcoming quarter too. The global success of the Korean drama Squid Game hints at what the company might achieve in the future. A quick look at the content slate for Q4 gives hope of a strong end to 2021, but there are certain risks that need to be monitored closely.

Shareholder Returns

NFLXUS EntertainmentUS Market
7D-1.9%-3.3%-2.7%
1Y35.5%9.9%21.3%

Return vs Industry: NFLX exceeded the US Entertainment industry which returned 9.9% over the past year.

Return vs Market: NFLX exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is NFLX's price volatile compared to industry and market?
NFLX volatility
NFLX Average Weekly Movement3.9%
Entertainment Industry Average Movement8.9%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: NFLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NFLX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19979,400Wilmot Hastingshttps://www.netflix.com

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

How do Netflix's earnings and revenue compare to its market cap?
NFLX fundamental statistics
Market CapUS$294.85b
Earnings (TTM)US$5.05b
Revenue (TTM)US$28.63b

58.4x

P/E Ratio

10.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NFLX income statement (TTM)
RevenueUS$28.63b
Cost of RevenueUS$16.26b
Gross ProfitUS$12.37b
ExpensesUS$7.32b
EarningsUS$5.05b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)11.40
Gross Margin43.22%
Net Profit Margin17.64%
Debt/Equity Ratio101.2%

How did NFLX perform over the long term?

See historical performance and comparison

Valuation

Is Netflix undervalued compared to its fair value and its price relative to the market?

17.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NFLX ($665.64) is trading below our estimate of fair value ($803.55)

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 (58.4x) compared to the US Entertainment industry average (31.4x).

PE vs Market: NFLX is poor value based on its PE Ratio (58.4x) compared to the US market (17.2x).


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 (19.3x) compared to the US Entertainment industry average (2.5x).


Future Growth

How is Netflix forecast to perform in the next 1 to 3 years based on estimates from 43 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFLX's forecast earnings growth (22.6% per year) is above the savings rate (2%).

Earnings vs Market: NFLX's earnings (22.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NFLX's revenue (13.3% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: NFLX's revenue (13.3% 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 (27.9%)


Past Performance

How has Netflix performed over the past 5 years?

50.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NFLX has a high level of non-cash earnings.

Growing Profit Margin: NFLX's current net profit margins (17.6%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: NFLX's earnings have grown significantly by 50.6% per year over the past 5 years.

Accelerating Growth: NFLX's earnings growth over the past year (80%) exceeds its 5-year average (50.6% per year).

Earnings vs Industry: NFLX earnings growth over the past year (80%) exceeded the Entertainment industry 18.9%.


Return on Equity

High ROE: Whilst NFLX's Return on Equity (32.98%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Netflix's financial position?


Financial Position Analysis

Short Term Liabilities: NFLX's short term assets ($9.4B) exceed its short term liabilities ($8.0B).

Long Term Liabilities: NFLX's short term assets ($9.4B) do not cover its long term liabilities ($19.4B).


Debt to Equity History and Analysis

Debt Level: NFLX's net debt to equity ratio (52%) is considered high.

Reducing Debt: NFLX's debt to equity ratio has increased from 93.5% to 101.2% over the past 5 years.

Debt Coverage: NFLX's debt is not well covered by operating cash flow (4.2%).

Interest Coverage: NFLX's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Wilmot Hastings (61 yo)

1.33yrs

Tenure

US$43,226,024

Compensation

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 ($USD43.23M) is above average for companies of similar size in the US market ($USD11.11M).

Compensation vs Earnings: Wilmot's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NFLX's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: NFLX's board of directors are considered experienced (6.7 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Netflix, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Netflix, Inc.
  • Ticker: NFLX
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$294.847b
  • Shares outstanding: 442.95m
  • Website: https://www.netflix.com

Number of Employees


Location

  • Netflix, Inc.
  • 100 Winchester Circle
  • Los Gatos
  • California
  • 95032
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 23:20
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.