NFLX — Netflix, Inc. $71.40

Generated 2026-06-30 21:50
USAIND

Quality Scorecard Transitional

A88/100
✅ Pricing power (gross margin) 49% Gross margin 49% — wide margins, likely pricing power
✅ Return on equity 48% ROE 48% — high returns on capital
✅ Leverage (net debt / EBITDA) 0.3x Net debt / EBITDA 0.3x — low leverage
✅ Interest coverage 17x EBIT covers interest 17x — comfortably covered
✅ Earnings consistency (revenue) 0/3 down 0 revenue-down year(s) in 3 — no down years
✅ Earnings growth (net income YoY) +26% Net income +26% YoY — earnings growing
✅ Cash conversion (CFO/NI) 92% Operating cash ÷ net income 92% — earnings convert to cash
✅ Operating margin trend improving Operating margin improving
🟡 Revenue growth 16% Revenue +16% — moderate growth
✅ Growth trajectory accelerating YoY +16% vs +11% prior 2-yr avg — accelerating
✅ Free cash flow margin 21% FCF margin 21% — strong cash generation
❌ Returns capital to shareholders no no dividend; shares +885.1%/yr

Transitional-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

87/100
Quality ×40%88
Trajectory ×30%87
Valuation ×30%87

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$30.57$125.56
Price $71.40DCF $33.97 (-52%)Analyst $114.15 (+60%)MarketGist fair $98.11 (+37%)

DCF: 16% start growth → 2.5%, 12.0% discount (band $29.40–$43.98). Analyst: 44 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▲ +27.6% YoY
Sales
▲ +15.9% YoY
Shares Outstanding
▼ -1.1% YoY

Company Overview

Basic Information

Company Name: Netflix, Inc.
Symbol: NFLX
Exchange: NMS
Sector: Communication Services
Industry: Entertainment

Company Details

Country: United States
City: Los Gatos
Employees: 16,000
Market Cap: $300.65B
Website: https://www.netflix.com

Business Description

Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

Key Metrics

Price & Valuation

Current Price
$71.40
Market Cap
$300.65B
P/E Ratio
23.03
Forward P/E
18.58
PEG Ratio
1.45
Price to Book
9.66

Profitability

Profit Margin: 28.52%
Operating Margin: 32.30%
Gross Margin: 49.03%
Return on Equity (ROE): 48.49%
Return on Assets (ROA): 15.40%
Revenue Growth: 16.20%

Financial Health

Current Ratio: 1.41
Quick Ratio: 1.18
Debt to Equity: 53.79
Total Debt: $16.74B
Total Cash: $12.29B
Beta: 1.49

Trading & Analyst Info

52-Week Range

52-Week High: $133.88
52-Week Low: $70.86
50-Day Average: $85.35
200-Day Average: $96.78

Analyst Recommendations

Recommendation: BUY
Target Mean Price: $114.15
Target High: $151.40
Target Low: $80.00

Price graph

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quarterly Verdict

🟢 100/100

Worth buying

Quality grade A; 7 improving / 0 weakening metrics YoY.

➕ Pricing power (gross margin): Gross margin 49% — wide margins, likely pricing power
➕ Return on equity: ROE 48% — high returns on capital
➕ Leverage (net debt / EBITDA): Net debt / EBITDA 0.3x — low leverage
➕ Interest coverage: EBIT covers interest 17x — comfortably covered
➕ Earnings consistency (revenue): 0 revenue-down year(s) in 3 — no down years
➕ Earnings growth (net income YoY): Net income +26% YoY — earnings growing
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 92% — earnings convert to cash
➕ Operating margin trend: Operating margin improving
➕ Growth trajectory: YoY +16% vs +11% prior 2-yr avg — accelerating
➕ Free cash flow margin: FCF margin 21% — strong cash generation
➖ Returns capital to shareholders: no dividend; shares +885.1%/yr
➕ Revenue +16.2% YoY
➕ Net income +82.8% YoY
➕ Operating margin +0.6 pts YoY
➕ Free cash flow +91.4% YoY
➕ Cash +70.3% YoY
➕ Debt -4.4% YoY
➕ Shares outstanding -1.0% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2025-12-312024-12-312023-12-312022-12-312021-12-31
Tax Effect Of Unusual Items$0.00$0.00$0.00$0.00N/A
Tax Rate For Calcs$0.14$0.13$0.13$0.15N/A
Normalized EBITDA$30.25B$26.31B$21.51B$20.33BN/A
Net Income From Continuing Operation Net Minority Interest$10.98B$8.71B$5.41B$4.49BN/A
Reconciled Depreciation$16.76B$15.63B$14.55B$14.36BN/A
Reconciled Cost Of Revenue$23.28B$21.04B$19.72B$19.17BN/A
EBITDA$30.25B$26.31B$21.51B$20.33BN/A
EBIT$13.50B$10.68B$6.95B$5.97BN/A
Net Interest Income$-604.05M$-451.96M$-748.60M$-368.90MN/A
Interest Expense$776.51M$718.73M$748.60M$706.21MN/A
Interest Income$172.46M$266.78MN/A$337.31M$411.21M
Normalized Income$10.98B$8.71B$5.41B$4.49BN/A
Net Income From Continuing And Discontinued Operation$10.98B$8.71B$5.41B$4.49BN/A
Total Expenses$31.86B$28.58B$26.77B$25.98BN/A
Total Operating Income As Reported$13.33B$10.42B$6.95B$5.63BN/A

Showing 15 of 40 rows

Balance Sheet (Annual)

Item2025-12-312024-12-312023-12-312022-12-312021-12-31
Treasury Shares Number$346.54M$247.84M$160.78M$15.64MN/A
Ordinary Shares Number$4.22B$4.28B$4.33B$4.45BN/A
Share Issued$4.57B$4.53B$4.49B$4.47BN/A
Net Debt$5.43B$7.78B$7.43B$9.21BN/A
Total Debt$14.46B$15.58B$14.54B$14.35BN/A
Tangible Book Value$-6.16B$-7.71B$-11.07B$-11.96BN/A
Invested Capital$41.08B$40.33B$35.13B$35.13BN/A
Working Capital$2.04B$2.34B$1.06B$1.34BN/A
Net Tangible Assets$-6.16B$-7.71B$-11.07B$-11.96BN/A
Common Stock Equity$26.62B$24.74B$20.59B$20.78BN/A
Total Capitalization$40.08B$38.54B$34.73B$35.13BN/A
Total Equity Gross Minority Interest$26.62B$24.74B$20.59B$20.78BN/A
Stockholders Equity$26.62B$24.74B$20.59B$20.78BN/A
Gains Losses Not Affecting Retained Earnings$-580.38M$362.16M$-223.94M$-217.31MN/A
Other Equity Adjustments$-580.38M$362.16M$-223.94M$-217.31MN/A

Showing 15 of 62 rows

Cash Flow Statement (Annual)

Item2025-12-312024-12-312023-12-312022-12-312021-12-31
Free Cash Flow$9.46B$6.92B$6.93B$1.62BN/A
Repurchase Of Capital Stock$-9.13B$-6.26B$-6.05B$0.00N/A
Repayment Of Debt$-1.83B$-400.00M$0.00$-700.00MN/A
Issuance Of Debt$0.00$1.79B$0.00$0.00N/A
Issuance Of Capital Stock$666.97M$832.89M$169.99M$35.75MN/A
Capital Expenditure$-688.22M$-439.54M$-348.55M$-407.73MN/A
Interest Paid Supplemental Data$718.61M$674.50M$684.50M$701.69MN/A
Income Tax Paid Supplemental DataN/A$1.64B$1.15B$811.72M$509.26M
End Cash Position$9.04B$7.81B$7.12B$5.17BN/A
Beginning Cash Position$7.81B$7.12B$5.17B$6.06BN/A
Effect Of Exchange Rate Changes$386.52M$-416.33M$82.68M$-170.14MN/A
Changes In Cash$845.34M$1.11B$1.87B$-714.39MN/A
Financing Cash Flow$-10.35B$-4.07B$-5.95B$-664.25MN/A
Cash Flow From Continuing Financing Activities$-10.35B$-4.07B$-5.95B$-664.25MN/A
Net Other Financing Charges$-51.97M$-38.03M$-75.45MN/A$-224.17M

Showing 15 of 53 rows

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