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?
- Netflix sales grew by 35.9% year on year in 2016 Q4.
- Long term revenue growth has been strong with a 5 year compounded annual growth 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.
- The NFLX stock currently trades at a PE of 338.1, which is expensive, compared to the industry average of 20.8.
- NFLX stock is trading at a PS multiple of 6.9, which is a negative when compared to the Broadcasting-Radio-TV industry average multiple of 1.5.
- The company has a negative free cash flow margin of -25%.