Netflix, Inc. (NFLX) is a publicly traded company in the Communication Services — Entertainment industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones.
Analysis Summary
Netflix, Inc. reported revenue of $45.18B in the most recent fiscal year, growing at a 5-year CAGR of 12.6%. Net income reached $10.98B, with a 31.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 49.1%, operating margin 29.7%, net margin 28.2%. Free cash flow grew at 37.4% CAGR over 5 years.
At the current price of $75.68, NFLX trades at a P/E of 23.81 and an ROE of 47.96%. Market capitalisation stands at $315.1B, placing it among large-cap names.
Balance sheet quality for NFLX: current ratio of 1.2, net debt of $5.40B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $9.46B represents 86% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Price
| Price | $75.68 |
| Market Cap | $315.1B |
| Exchange | NASDAQ |
| Country | US |
Valuation Ratios
| P/E Ratio | 23.81 |
| Price / Book | 10.68 |
| EV / EBITDA | 10.69 |
| Dividend Yield | 0.00% |
Profitability
| Return on Equity | 47.96% |
| Return on Invested Capital | 24.34% |
| Return on Assets | 23.35% |
| Gross Margin | 49.12% |
| Operating Margin | 29.68% |
| Net Margin | 28.22% |
Financial Health
| Debt / Equity | 0.47 |
| Current Ratio | 1.14 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 10.92 |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| NFLX | Netflix, Inc. | $318.2B | 23.81 | 10.68 | 48.0% |
| NWSA | News Corporation | $16.9B | 32.15 | 2.16 | 6.6% |
| DIS | The Walt Disney Company | $185.8B | 22.43 | 1.72 | 7.9% |
| LYV | Live Nation Entertainment, Inc. | $39.8B | 483.75 | 73.3% | |
| TKO | TKO Group Holdings, Inc. | $14.5B | 62.96 | 4.19 | 6.4% |
Price Performance
| 1 month | -2.71% |
| 3 months | -2.22% |
| Year-to-date | -19.30% |
| 1 year | -38.41% |
| 3 years | +91.84% |
52-Week Range
| 52-week High | $124.86 |
| 52-week Low | $65.08 |
| Avg Volume (90d) | 38.3M |
Related companies: DIS · IMAX · LYV · MSGE · NWSA · PLAY · RSVR
Explore sector: Communication Services · Entertainment
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