Netflix, Inc.(NFLX) - Stock detail

Netflix, Inc.

US
NFLX
Netflix, Inc.(Listing date: 05/23/2002)

Netflix, Inc. was incorporated in the State of Delaware on August 29, 1997. It is one of the world's leading entertainment service companies, offering a wide variety of TV series, films, and games across different genres and languages. Members can play, pause, and resume watching anytime, anywhere, and can change their plans at any time.

AI Value AnalystHold
Overall Rating6/10
Generated at:2026-04-17 17:42:45
Analysis based on real data from 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Current price data as of 2026-04-17 close. Trading range data based on 60-day trading history. Valuation multiples calculated using trailing twelve months (TTM) and forward estimates.
Overview

Netflix, Inc. (NFLX) is a leading global streaming entertainment provider with a dominant market position. The company demonstrates exceptionally strong and improving profitability with high margins and outstanding returns on capital. However, its financial condition shows a mixed picture with moderate leverage, and its valuation is considered fair to slightly overvalued, trading at significant premiums on traditional metrics. The overall fundamental analysis suggests a high-quality company with superb fundamentals offset by rich valuation.

Valuation
3/10
Profitability
9/10
Financial health
6/10
Operation Advice
  • Recommendation is HOLD for existing shareholders due to strong fundamentals.
  • For potential buyers, the risk/reward is not compelling at the current price; waiting for a more attractive entry point within the lower half of the fundamental valuation range ($86.40 - $93.60) would be more prudent.
  • The stock is fairly valued to slightly overvalued based on traditional metrics, with its price supported by exceptional profitability and growth expectations rather than cheap valuation.

Valuation

P/E TTM
30.64
P/E LYR
31.97
P/B MRQ
13.16
P/S TTM
--
AI Analysis
  • Netflix's valuation multiples are high relative to the broader market, reflecting a premium for its growth and profitability. The current price sits within a calculated fundamental range but near its upper end. The stock is assessed as fairly valued to slightly overvalued based on traditional fundamental metrics.
  • The trailing twelve months (TTM) P/E is 33.94 and the forward (dynamic) P/E is 31.97.
  • The Price-to-Book ratio of 14.58 is extremely high, typical for asset-light, high-return-on-equity companies.
  • The TTM Price-to-Sales ratio of 9.07 is elevated, pricing in future growth and high margins.
  • Based on 60-day trading data, the stock has traded between a low of $75.86 and a high of $108.94.
  • The current price of $97.31 is approximately 9.5% below the recent 60-day high and 28.3% above the recent 60-day low.
  • A reasonable fundamental valuation range is $86.40 - $100.80, derived using TTM EPS and a P/E range of 30x to 35x.
  • The current price of $97.31 sits within the calculated fundamental range but near its upper end.
  • The conclusion is that Netflix is fairly valued to slightly overvalued based on traditional fundamental metrics.
  • The stock's price is highly sensitive to growth expectations due to high valuation multiples.
Valuation trend

Profitability

ROE TTM
42.76%
Net margin
24.30%
Gross margin
48.49%
Total revenue
45.18B
AI Analysis
  • Netflix demonstrates exceptionally strong and improving profitability with consistent double-digit revenue growth, high and expanding margins, and outstanding returns on capital that are well above market averages.
  • Revenue growth has been consistent and robust, with the latest annual (2025) year-over-year growth at 15.85%.
  • Quarterly revenue growth figures remain in the low-to-mid teens, indicating sustained top-line expansion.
  • Gross margin is 48.49% for FY2025 and net margin is 24.30%, both high and showing year-over-year improvement.
  • Net margin expanded from 22.34% (FY2024) to 24.30% (FY2025), signaling improved operating efficiency and pricing power.
  • Return on Equity (ROE) of 42.76% and Return on Assets (ROA) of 20.11% are outstanding.
  • These return figures are well above market averages.
  • The profitability metrics reflect highly efficient use of shareholder equity and company assets to generate profits.
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--11.85%24.21%33.78%42.76%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue39.00B10.54B21.62B33.13B45.18B

Financial health

Debt/Asset
52.13%
Current ratio
1.19
Quick ratio
--
Cash ratio
1.19
AI Analysis
  • The company's financial health shows a mixed picture with adequate short-term liquidity but moderate financial leverage. The balance sheet is characteristic of a growth-phase company transitioning to maturity, utilizing debt to fund content investments while generating strong operational cash flows.
  • The current ratio of 1.19 indicates adequate short-term liquidity, meaning current assets sufficiently cover current liabilities.
  • The debt-to-asset ratio of 52.13% indicates a moderate level of financial leverage.
  • This level of debt is common for mature, cash-generative companies and is not immediately concerning, but it does introduce financial risk.
  • The balance sheet is characteristic of a growth-phase company transitioning to maturity.
  • The company utilizes debt to fund content investments while generating strong operational cash flows.
  • The high profitability metrics help offset the elevated leverage.
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset53.86%53.87%53.01%52.75%52.13%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.221.201.341.331.19