Netflix Stock Analysis, Valuation (NASDAQ:NFLX)
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 2.6/5
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 Q2 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's revenue growth came in at 40.3% in 2018-06.
- The company saw a significant growth in revenue with a 5 year CAGR of 28.6.
- Netflix generates a high return on invested capital of 8.2.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Netflix at 26.7.
Should you sell NFLX stock?
- Netflix has a debt/equity ratio of 1.86, which is worse than the average in the Consumer Discretionary sector.
- Operating cash flows are negative.
- Trading at a PE ratio of 154.1, NFLX stock is overvalued in comparison to sector average multiple of 21.4.
- The company is trading at a price to sales multiple of 10.6, which is overvalued in comparison to the Consumer Discretionary sector average multiple of 1.6.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -14.
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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.