Netflix, Inc. provides Internet entertainment services.
High growth potential with proven track record.
Share Price & News
How has Netflix's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NFLX's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NFLX underperformed the US Entertainment industry which returned 21.7% over the past year.
Return vs Market: NFLX underperformed the US Market which returned 20.3% over the past year.
Price Volatility Vs. Market
How volatile is Netflix's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall StShould You Think About Buying Netflix, Inc. (NASDAQ:NFLX) Now?
2 weeks ago | Simply Wall StIs Netflix, Inc.'s (NASDAQ:NFLX) CEO Pay Fair?
3 weeks ago | Simply Wall StNetflix, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
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 ($386.19) is trading below our estimate of fair value ($432.75)
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 (90.6x) compared to the Entertainment industry average (25x).
PE vs Market: NFLX is poor value based on its PE Ratio (90.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: NFLX is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: NFLX is overvalued based on its PB Ratio (22.4x) compared to the US Entertainment industry average (2.5x).
How is Netflix forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NFLX's forecast earnings growth (25.8% per year) is above the savings rate (1.7%).
Earnings vs Market: NFLX's earnings (25.8% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NFLX's revenue (14.6% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: NFLX's revenue (14.6% 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 (29.6%)
How has Netflix performed over the past 5 years?
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 (9.3%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: NFLX's earnings have grown significantly by 49.8% per year over the past 5 years.
Accelerating Growth: NFLX's earnings growth over the past year (54.1%) exceeds its 5-year average (49.8% per year).
Earnings vs Industry: NFLX earnings growth over the past year (54.1%) exceeded the Entertainment industry -8.9%.
Return on Equity
High ROE: Whilst NFLX's Return on Equity (24.62%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
How is Netflix's financial position?
Financial Position Analysis
Short Term Liabilities: NFLX's short term assets ($6.2B) do not cover its short term liabilities ($6.9B).
Long Term Liabilities: NFLX's short term assets ($6.2B) do not cover its long term liabilities ($19.5B).
Debt to Equity History and Analysis
Debt Level: NFLX's debt to equity ratio (194.7%) is considered high.
Reducing Debt: NFLX's debt to equity ratio has increased from 45.2% to 194.7% over the past 5 years.
Debt Coverage: NFLX's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: NFLX's interest payments on its debt are well covered by EBIT (4.7x coverage).
Inventory Level: NFLX has a low level of unsold assets or inventory.
Debt Coverage by Assets: NFLX's debt is not covered by short term assets (assets are 0.4x debt).
What is Netflix's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate NFLX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate NFLX's dividend yield against the top 25% of dividend payers, as the company has not reported any 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 (59yo)
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 199 ...
CEO Compensation Analysis
Compensation vs Market: Wilmot's total compensation ($USD36.08M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Wilmot's compensation has increased by more than 20% in the past year.
|Chief Content Officer||19.9yrs||US$29.65m||no data|
|Chief Product Officer||6.6yrs||US$14.82m||0.0030% $5.0m|
|Chief Financial Officer||1.1yrs||no data||no data|
|Vice President of Finance & Investor Relations||5.1yrs||no data||no data|
|Chief Legal Officer & Secretary||18.1yrs||US$5.11m||0.0072% $12.2m|
|Chief Communications Officer||1.5yrs||no data||0.000070% $118.6k|
|Chief Marketing Officer||0.4yrs||no data||no data|
|Chief Business Development Officer||0yrs||no data||no data|
|Chief Talent Officer||2.3yrs||no data||no data|
Experienced Management: NFLX's management team is seasoned and experienced (5.1 years average tenure).
|Lead Independent Director||0yrs||US$377.86k||0.12% $206.7m|
|Independent Director||21.7yrs||US$377.86k||no data|
|Independent Director||17.8yrs||US$377.86k||0.0016% $2.7m|
|Independent Director||9.4yrs||US$377.86k||no data|
|Independent Director||8.1yrs||US$377.86k||0.0080% $13.6m|
|Independent Director||4.9yrs||US$377.86k||0.0015% $2.5m|
|Independent Director||1.9yrs||US$285.98k||no data|
|Independent Director||4.9yrs||US$377.86k||no data|
|Independent Director||2.1yrs||US$347.15k||no data|
Experienced Board: NFLX's board of directors are considered experienced (8.1 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 company bio, 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$169.463b
- Shares outstanding: 438.81m
- Website: https://www.netflix.com
Number of Employees
- Netflix, Inc.
- 100 Winchester Circle
- Los Gatos
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NFLX||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||May 2002|
|NFC||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||May 2002|
|NFC||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2002|
|NFLX *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||May 2002|
|NFLX||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||May 2002|
|0QYI||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||May 2002|
|NFLX||BIT (Borsa Italiana)||Yes||Common Stock||IT||EUR||May 2002|
|NFLX||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||May 2002|
|NFLX||BVL (Bolsa de Valores de Lima)||Yes||Common Stock||PE||USD||May 2002|
|NFLX34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM SHS||BR||BRL||Aug 2012|
|NFLX||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 16 REP 1 COM USD0.001||AR||ARS||Apr 2019|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 00:55|
|End of Day Share Price||2020/02/19 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.