About Netflix, Inc.
Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Netflix, Inc. (NFLX) is a Communication Services company in the Entertainment industry with a market capitalisation of $334.4B. The stock trades at 25.26x trailing earnings.
- Sector
- Communication Services
- Industry
- Entertainment
- Market cap
- $334.4B
- P/E ratio
- 25.26
- Forward P/E
- 21.02
- EPS (TTM)
- $3.18
- Revenue (TTM)
- $48.4B
- Free cash flow
- $25.4B
- Profit margin
- 28.2%
- Beta
- 1.53
- Shares outstanding
- 4.2B
Financial health: Strong8.5/10
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: 49.5% (Strong, benchmark > 15%) — Earns 49.5% 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: 28.2% (Strong, benchmark > 10%) — Turns 28.2% 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: 13.4% (Strong, benchmark > 10%) — Revenue changed 13.4% year on year, comfortably past the > 10% mark.
- Earnings growth: 11.1% (Strong, benchmark > 10%) — Earnings changed 11.1% year on year, comfortably past the > 10% mark.
- PEG ratio: 1.43 (Watch, benchmark < 1) — At 1.43, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.