Netflix Stock Analysis (NASDAQ:NFLX)
Netflix Analysis Video
View Netflix stock analysis video. This is our NFLX analyst opinion covering the buy and sell arguments for NFLX stock.
Netflix, Inc. Stock Rating (2/5)
Our Netflix stock opinion is based on fundamentals of the company. This Netflix stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy NFLX stock?
- The Year Over Year (YoY) revenue growth for Netflix was 35.9% in 2016 Q4.
- The company saw a significant growth in revenue with a 5 year CAGR of 22.5%.
Should you sell NFLX stock?
- Netflix's TTM operating margin of 4.3% was rather poor.
- Netflix posted a TTM Net margin of 2.1%.
- Netflix is debt laden and has a high debt/equity ratio of 1.26.
- NFLX stock is trading at a PE ratio of 337.7, which is worse than the industry average multiple of 20.8.
- The company is trading at a price to sales multiple of 6.9, which is higher in comparison to the Broadcasting-Radio-TV industry average of 1.5, making NFLX stock expensive.
- Netflix has a negative FCF (Free Cash Flow) margin of -25%.