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 (1.7/5)
Our Netflix stock opinion is based on fundamentals of the company. This Netflix stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.
Should you buy NFLX stock?
- Netflix sales grew by 31.7% year on year in 2016 Q3.
- Revenue growth has been tremendous with a compounded annual growth of over the last 5 years.
Should you sell NFLX stock?
- Netflix had an unimpressive average operating margin of 3.5% during the Last Twelve Months (LTM).
- Netflix's Net margins were poor at 2% in the last twelve months.
- Netflix is debt laden and has a high debt/equity ratio of 0.94.
- NFLX stock is trading at a PE ratio of 407.6, which is worse than the industry average multiple of 20.
- The company is trading at a price to sales multiple of 7.3, which is overvalued in comparison to the Broadcasting-Radio-TV industry average multiple of 1.5.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -21.4%.