NFLX

NetflixNasdaqGS:NFLX Stock Report

Market Cap

US$260.8b

7D

-1.6%

1Y

25.4%

Updated

19 Sep, 2021

Data

Company Financials +
NFLX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance5/6
Financial Health2/6
Dividends0/6

NFLX Overview

Netflix, Inc. provides entertainment services.

Netflix Competitors

Walt Disney

NYSE:DIS

US$333.4b

Spotify Technology

NYSE:SPOT

US$47.5b

Roku

NasdaqGS:ROKU

US$43.3b

iQIYI

NasdaqGS:IQ

US$6.9b

Price History & Performance

Summary of all time highs, changes and price drops for Netflix
Historical stock prices
Current Share PriceUS$589.35
52 Week HighUS$463.41
52 Week LowUS$615.60
Beta0.76
1 Month Change7.77%
3 Month Change18.58%
1 Year Change25.40%
3 Year Change63.17%
5 Year Change514.29%
Change since IPO49,159.13%

Recent News & Updates

Sep 15

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.

Sep 09

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.

Sep 08
The Value and Growth Drivers that Justify Netflix's (NASDAQ:NFLX) Current Valuation

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.

Aug 26

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.

Shareholder Returns

NFLXUS EntertainmentUS Market
7D-1.6%-1.3%-0.6%
1Y25.4%30.1%33.8%

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.

Price Volatility

Is NFLX's price volatile compared to industry and market?
NFLX volatility
NFLX Beta0.76
Industry Beta1.06
Market Beta1

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

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$260.84b
Earnings (TTM)US$4.39b
Revenue (TTM)US$27.59b

59.4x

P/E Ratio

9.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NFLX income statement (TTM)
RevenueUS$27.59b
Cost of RevenueUS$15.92b
Gross ProfitUS$11.67b
ExpensesUS$7.27b
EarningsUS$4.39b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 19, 2021

Earnings per share (EPS)9.92
Gross Margin42.29%
Net Profit Margin15.92%
Debt/Equity Ratio112.7%

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?

14.5%

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).


Future Growth

How is Netflix forecast to perform in the next 1 to 3 years based on estimates from 42 analysts?

23.0%

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%)


Past Performance

How has Netflix performed over the past 5 years?

51.0%

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.


Financial Health

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).


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?

2.3yrs

Average management tenure


CEO

Wilmot Hastings (61 yo)

1.17yrs

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 ($USD43.23M) is above average for companies of similar size in the US market ($USD11.33M).

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 (2.3 years average tenure).


Board Members

Experienced Board: NFLX's board of directors are considered experienced (6.5 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$260.844b
  • Shares outstanding: 442.60m
  • 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 Analysis2021/09/19 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.