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 (1.9/5)
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?
- Netflix sales grew by 35.9% year on year 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 had a poor average operating margin of 4.3% over the last 4 quarters.
- Netflix's LTM Net margins were poor at 2.1%.
- Netflix is debt laden and has a high debt/equity ratio of 1.26.
- Trading at a PE ratio of 345.6, NFLX stock is overvalued in comparison to industry average multiple of 20.9.
- The company is trading at a price to sales multiple of 7.1, which is overvalued in comparison to the Broadcasting-Radio-TV industry average multiple of 1.5.
- Netflix has a poor return on invested capital of 4.7%.
- Netflix has a negative FCF (Free Cash Flow) margin of -25%.