Netflix Inc

Consumer Discretionary
Consumer Electronics/Video Chains
www.netflix.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $399.56B
PE 51
Debt $15.98B
Cash $7.46B
EV $408.08B
FCF $7.12B

Earnings

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Sales & Net Margins

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Earnings	$7.78B
EBIT	$9.64B
ROE	34%
ROA	18%
FCF	$7.12B
Equity	$22.72B
Growth Stability	100%
PE	51.35
PEG	2.06
PB	17.59
P/FCF	56.08
P/S	10.63
Price/Cash	0.02
Debt/Equity	0.7
Debt/FCF	2.24
Net Margins	24%
Gross Margins	45%
Op. Margins	26%
Earnings CAGR	60%
Sales Growth YoY	15%
Sales Growth QoQ	3%
Sales CAGR	22%
FCF CAGR	5%
Equity CAGR	35%
Earnings Stability	0.9
Earnings Growth YoY	41%
Earnings Growth QoQ	10%

Earnings CAGR 5Y	25%
Sales CAGR 5Y	12%
FCF CAGR 5Y	71%
Equity CAGR 5Y	26%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	329%
Equity CAGR 3Y	10%
Market Cap	$399.56B
Revenue	$37.59B
Assets	$52.28B
Total Debt	$15.98B
Cash	$7.46B
Shares Outstanding	427.46M
EV	408.08B
Earnings Score	95%
Moat Score	97%
Safety Score	92%
Final Score	95%
Working Capital	1.42B
Current Ratio	1.13
Gross Profit	$17.01B
Shares Growth 3y	-2%
Equity Growth QoQ	3%
Equity Growth YoY	3%

Assets & ROA

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Stockholders Equity & ROE

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Netflix's primary business is a streaming video on demand service now available in almost every country worldwide except China. Netflix delivers original and third-party digital video content to PCs, internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.

SEC Filings

Direct access to Netflix Inc (NFLX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Netflix Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Netflix Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 60%

Stability 90%

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Netflix Inc Discounted Cash Flow

Fully customizable DCF calculator online for Netflix Inc.

Years

Calculation mode

= $101B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$7.1B	$7.5B	$7.9B	$8.3B	$8.7B	$9.2B	$9.6B	$10B	$11B	$11B	$12B	$118B
DCF		$6.8B	$6.5B	$6.2B	$5.9B	$5.7B	$5.4B	$5.2B	$5B	$4.7B	$4.5B	$45B
Value	$101B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	5%	2%	2%	5%	8%	9%	11%	17%	14%	16%	24%
ROA	-	3%	3%	4%	6%	8%	12%	14%	12%	14%	18%
ROE	-	6%	7%	16%	23%	25%	25%	32%	22%	26%	34%

Good Net Margins (23.8%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-2.82	-2.13	-4.62	-5.21	-6.6	11.59	-116.63	8.87	2.1	2.24
Debt over Equity	0.48	1.07	1.26	2.53	2.84	2.73	2.02	0.97	0.69	0.71	0.7
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (2.24)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.7)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	23%	30%	32%	35%	28%	24%	19%	6%	7%	12%
Earnings YoY growth	-	-54%	52%	199%	117%	54%	48%	85%	-12%	20%	25%
Equity YoY growth	-	20%	21%	34%	46%	45%	46%	43%	31%	-1%	26%
FCF YoY growth	-	1K%	88%	24%	46%	10%	-161%	-107%	-1K%	328%	71%