About Netflix, Inc.
Netflix, Inc. (NFLX) is a Communication Services company in the Services-Video Tape Rental industry with a market capitalisation of $350.4B. The stock trades at 25.88x trailing earnings.
- Sector
- Communication Services
- Industry
- Services-Video Tape Rental
- Market cap
- $350.4B
- P/E ratio
- 25.88
- EPS (TTM)
- $2.53
- Revenue (TTM)
- $45.2B
- Free cash flow
- $9.5B
- Profit margin
- 24.3%
- Shares outstanding
- 4.2B
Financial health: Strong8.9/10
7 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.54 (Watch, benchmark < 0.5) — Debt of 0.54x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.6y (Strong, benchmark < 4 years) — Net debt of $5.4B is 0.6x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 1.19 (Watch, benchmark > 1.5) — Short-term assets cover 1.19x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: 41.3% (Strong, benchmark > 15%) — Earns 41.3% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 49.1% (Strong, benchmark > 40%) — Keeps 49.1% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 24.3% (Strong, benchmark > 10%) — Turns 24.3% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $9.5B (Strong, benchmark positive) — Generated $9.5B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 15.8% (Strong, benchmark > 10%) — Revenue changed 15.8% year on year, comfortably past the > 10% mark.
- Earnings growth: 26.0% (Strong, benchmark > 10%) — Earnings changed 26.0% year on year, comfortably past the > 10% mark.