Netflix Stock Analysis, Valuation (NASDAQ:NFLX)

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$278.52 $1.75 (0.62%) NFLX stock closing price Feb 16, 2018 (Closing)
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Netflix
Updated on : Feb 16, 2018
previous close
NFLX 278.5 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Broadcasting-Radio-TV
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
26.5%
Operating Profit
Operating Margin:
7.2%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
6.5B
Debt/Equity Ratio:
 1.82
Compared to the industry
Cash Flow
Operating cash flow:
-$488M
Net Income:
$185.5M
PROS      CONS
Recent Growth
Long Term Growth
ROE
High Debt Burden
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
NFLX PS :
10.3
Industry PS :
1.7
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6%
Return on Equity:
17.8%
Free Cash Flow Margin:
-15.5%
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Netflix Stock Analysis

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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 2017 Q4 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 32.6% in 2017 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of 26.5% over the last 5 years.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Netflix at 17.8%.

Should you sell NFLX stock?

  • Netflix has a debt/equity ratio of  1.82, which is worse than the average in the Consumer Discretionary sector.
  • The NFLX stock currently trades at a PE of 222.8, which is expensive, compared to the industry average of 22.8.
  • NFLX stock is trading at a PS multiple of 10.3, which is a negative when compared to the Broadcasting-Radio-TV industry average multiple of 1.7.
  • The company has a negative free cash flow margin of -15.5%.

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.