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 (2.1/5)
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.
- 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%.
- With a debt/equity ratio of 1.13, Netflix is highly leveraged in comparison to Consumer Discretionary peers.
- The NFLX stock currently trades at a PE of 213.7, which is expensive, compared to the industry average of 21.2.
- NFLX stock is trading at a PS multiple of 7.4, which is a negative when compared to the Broadcasting-Radio-TV industry average multiple of 1.5.
- Netflix has a negative FCF (Free Cash Flow) margin of -15%.