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 Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy NFLX stock?
- Netflix sales grew by 34.7% year on year in 2017 Q1.
- The company saw a significant growth in revenue with a 5 year CAGR of 23.2%.
Should you sell NFLX stock?
- Netflix had an unimpressive average operating margin of 6.2% during the Last Twelve Months (LTM).
- Netflix's LTM Net margins were poor at 3.5%.
- Netflix has a debt/equity ratio of 1.13, which is worse than the average in the Consumer Discretionary sector.
- Trading at a PE ratio of 200.3, NFLX stock is overvalued in comparison to industry average multiple of 21.7.
- 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.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -15%.