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 AnalystBuy
Overall Rating7.3/10
Generated at:2026-06-03 17:40:55
Analysis based on real data from 5 financial reports covering periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Stock price data as of 2026-06-03 close. Valuation metrics include forward P/E, TTM P/E, P/B, and P/S ratios. Trading range analysis based on 60-day historical data.
Overview

Netflix, Inc. demonstrates exceptionally strong fundamental performance with robust revenue growth, explosive profit growth, and industry-leading profitability metrics. The company maintains solid financial health with adequate liquidity and moderate leverage, supporting its position as a market leader in streaming entertainment. While valuation multiples are elevated, the recent price pullback to the lower end of its trading range presents a favorable entry point given the underlying strength of the business fundamentals.

Valuation
6/10
Profitability
9/10
Financial health
7/10
Operation Advice
  • Consider buying at the current price of $81.52, which is near the bottom of the recent 60-day trading range ($81.10-$108.94).
  • The stock appears fairly valued to slightly undervalued relative to its strong fundamentals.
  • Target price ranges for the next 12 months are $88-$95 (conservative), $95-$102 (base case), and $105-$110 (upside scenario).
  • This represents a favorable risk-reward profile for long-term investors.

Valuation

P/E TTM
29.00
P/E LYR
31.97
P/B MRQ
12.46
P/S TTM
--
AI Analysis
  • Netflix's valuation multiples (P/E ~30, P/B ~12.5, P/S ~7.3) are elevated compared to market averages but can be justified by its exceptional profitability and growth profile. The current price of $81.52 is near the bottom of the recent 60-day trading range, suggesting the stock may be fairly valued to slightly undervalued after the recent pullback.
  • The forward P/E is 31.97 and the TTM P/E is 29.00, which are elevated compared to the broader market average.
  • The P/B ratio is 12.46, which is very high due to the company's exceptionally high ROE.
  • The P/S TTM ratio is 7.32, consistent with premium valuations for high-growth technology/media companies.
  • The stock has traded between $108.94 (high on 2026-04-16) and $81.10 (low on 2026-06-03) over the past 60 days.
  • The current price of $81.52 is near the bottom of this recent trading range.
  • Given the stellar profitability metrics, the current valuation multiples, while high, can be justified.
  • The stock is not cheap on an absolute basis but may be fairly valued to slightly undervalued at the current level.
  • The recent pullback from the 60-day high makes the current price more attractive.
Valuation trend

Profitability

ROE TTM
49.21%
Net margin
43.13%
Gross margin
51.93%
Total revenue
12.25B
AI Analysis
  • Netflix demonstrates strong and improving profitability with robust revenue growth, accelerating net income growth, significant margin expansion, and exceptionally high returns on equity and assets.
  • Revenue growth remains robust, with Q1 2026 year-over-year growth at 16.19%.
  • Net income growth is accelerating, with Q1 2026 showing an 82.77% year-over-year increase.
  • Profit margins have expanded significantly, with Q1 2026 net margin reaching 43.13% (up from 27.42% in Q1 2025).
  • The margin expansion indicates improved operating efficiency and pricing power.
  • The TTM Return on Equity (ROE) is exceptionally high at 49.21%.
  • The TTM Return on Assets (ROA) is 23.70%, reflecting superior management effectiveness.
  • The high returns reflect the company's ability to generate substantial profits from its asset and equity base.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--24.21%33.78%42.76%49.21%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue10.54B21.62B33.13B45.18B12.25B

Financial health

Debt/Asset
48.99%
Current ratio
1.41
Quick ratio
--
Cash ratio
1.41
AI Analysis
  • Netflix maintains solid financial health with adequate liquidity, moderate leverage, and strong profitability that benefits from financial leverage.
  • The current ratio of 1.41 indicates sufficient short-term assets to cover short-term liabilities, suggesting adequate liquidity.
  • The debt-to-asset ratio is 48.99%, representing moderate leverage for a mature, cash-generative company.
  • This level of leverage is not a cause for immediate concern for Netflix.
  • The high Return on Equity (ROE) of 49.21% is significantly boosted by this financial leverage.
  • The leverage magnifies returns on shareholder equity.
  • The company's financial health appears solid based on the latest metrics.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset53.87%53.01%52.75%52.13%48.99%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.201.341.331.191.41