Netflix Stock Analysis, Valuation (NASDAQ:NFLX)
Netflix Stock Analysis
Watch the robo advisor video of Netflix stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for NFLX stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Netflix, Inc. Stock Rating 2.2/5
Amigobulls NFLX stock analysis takes into account various financial ratios like relative valuation, Netflix revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Netflix dividend performance. Netflix valuation forms a crucial part of our stock analysis. Netflix stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy NFLX stock?
- Netflix sales grew by 40.4% year on year in 2018 Q1.
- Revenue growth has been tremendous with a compounded annual growth of 27.7% over the last 5 years.
- Netflix has a good Return On Equity (ROE) of 19.7%.
Should you sell NFLX stock?
- With a debt/equity ratio of 1.63, Netflix is highly leveraged in comparison to Consumer Discretionary peers.
- NFLX stock is trading at a PE ratio of 385.6, which is worse than the industry average multiple of 21.5.
- NFLX stock is trading at a PS multiple of 11.1, which is a negative when compared to the Broadcasting-Radio-TV industry average multiple of 1.6.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -7.4%.
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Amigobulls Netflix stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.
Netflix revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.