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 (2.2/5)
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?
- The Year Over Year (YoY) revenue growth for Netflix was 34.7% in 2017 Q1.
- Revenue growth has been tremendous with a compounded annual growth of 23.2% over the last 5 years.
Should you sell NFLX stock?
- Netflix's TTM operating margin of 6.2% was rather poor.
- 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.
- The NFLX stock currently trades at a PE of 201.9, which is expensive, compared to the industry average of 21.8.
- 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 1.6.
- The company has a negative free cash flow margin of -15%.