Netflix Stock Analysis, Valuation (NASDAQ:NFLX)

Add to My Stocks
$400.48 $4.68 (1.18%) NFLX stock closing price Jul 16, 2018 (Closing)

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 2.4/5

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?

  • The Year Over Year (YoY) revenue growth for Netflix was 40.4% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 27.7.
  • The LTM ROE of 19.7 for Netflix is attractive.

Should you sell NFLX stock?

  • With a debt/equity ratio of 1.63, Netflix is highly leveraged in comparison to Consumer Discretionary peers.
  • The company's operations consume more cash than it generates. This is not a healthy sign.
  • The NFLX stock currently trades at a PE of 268.8, which is expensive, compared to the sector average of 22.8.
  • The company is trading at a price to sales multiple of 13.6, which is higher in comparison to the Consumer Discretionary sector average of 1.6, making NFLX stock expensive.
  • The company has a negative free cash flow margin of -7.4.

Comments on this video and Netflix stock

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.