Stock · NFLX · Communication Services
United States · Large Cap · listed since 2002 · Revenue 12 mo. $49.7B
Price as of 11/06/2026
Summary
48.1 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €8.5B (2025), it supports €94.3B. The remaining €141.6B of the market value assume it grows 12.8% a year for 10 years and not at all afterwards.
Required FCF growth per year
12.8%
no growth afterwards
Price to operating cash flow 21.6×, below its usual range.
Middle half of 20 quarters: 35.7× to 64.7×, median 45.3×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
No anomaly in the stored figures.
AI summary of the 2025 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 12/31/2025, filed 01/23/2026. Open the report at the SEC
Most revenue comes from monthly membership fees for streaming content delivered to members.
Our revenues are primarily derived from monthly membership fees for services related to streaming content to our members.The company says it aims to offer several pricing plans, including a subscription plan with advertising, for different consumer needs.
We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs.Members can watch, pause and resume as much as they want, at any time and place, and change their plans at any time.
Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time.The company has expanded its video offering to include games and live programming.
We expanded our entertainment video offering to include games and live programming.The company also continues to expand its offering of consumer products and live experiences.
For example, we continue to expand our offering of consumer products and live experiences.Members pay the company for the service, using methods such as cards, direct debit and online wallets.
Our members pay for our service using a variety of different payment methods, including credit and debit cards, gift cards, prepaid cards, direct debit, online wallets and direct carrier and partner billing.In many cases, the partner bills consumers directly for the Netflix service.
In many instances, our agreements also include provisions by which the partner bills consumers directly for the Netflix serviceThe market for entertainment video is very competitive and changes quickly.
The market for entertainment video is intensely competitive and subject to rapid change.The company competes for people's free time with other video providers, such as linear television and streaming services.
We compete with a broad set of activities for consumers' leisure time, including other entertainment video providers, such as linear television, streaming entertainment providersThe company also competes with other video providers and producers to obtain content, both licensed and original.
We also compete against entertainment video providers and content producers in obtaining content for our service, both for licensed content and for original content projects.The company relies on Amazon Web Services for parts of its service. A disruption there would affect its operations and business.
We rely upon Amazon Web Services to operate certain aspects of our service and any disruption of or interference with our use of the Amazon Web Services operation would impact our operations and our business would be adversely impacted.Certain content licenses allow studios and other providers to withdraw titles from the service relatively quickly.
Certain licenses for content provide for the studios or other content providers to withdraw content from our service relatively quickly.Content commitments run for several years and are largely fixed in cost. If business does not meet expectations, margins may be hurt.
Given the multiple-year duration and largely fixed cost nature of content commitments, if business performance does not meet our expectations, our margins may be adversely impacted.Since the last quarter
Q2 → Q3 2026
3 more unchanged: Revenue, 12 mo., FCF, 12 mo., FCF margin
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 41.26% | 11.44% | Rank 97 |
| Return on capital (Greenblatt) | 329.57% | 22.01% | Rank 99 |
| EBIT margin | 29.49% | 17.12% | Rank 89 |
| FCF margin | 20.94% | 15.81% | Rank 75 |
| Gross margin | 48.49% | 44.45% | Rank 57 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 15.85% | 4.46% | Rank 84 |
| Earnings growth, 3 years per year | 36.44% | 5.70% | Rank 88 |
| Earnings growth, 5 years per year | 32.98% | 6.76% | Rank 93 |
| Sustainable growth (ROE × retained earnings) | 1.52% | 9.07% | Rank 26 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 3.99% | 3.92% | Rank 51 |
| FCF yield | 3.60% | 6.59% | Rank 36 |
| EV/saleslower is better | 5.94 | 2.84 | Rank 21 |
| EV/EBITlower is better | 20.14 | 16.58 | Rank 34 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −51.80% | −11.03% | Rank 5 |
| Share price, 6 months | −27.04% | −0.69% | Rank 8 |
| Share price, 3 months | −9.34% | 4.43% | Rank 9 |
| Distance from 52-week high | −45.22% | −16.85% | Rank 8 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | −0.38% | −0.38% | Rank 50 |
| Change in share countlower is better | −1.11% | −0.06% | Rank 68 |
| Dividend streak in years | – | 5 | Rank 13 |
| Price reaction to results, market-adjusted | −5.84% | 0.56% | Rank 9 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 47.87% | 37.05% | Rank 58 |
| Net debt/EBITDAlower is better | 0.18 | 1.47 | Rank 68 |
| Debt to equitylower is better | 0.54 | 0.75 | Rank 59 |
| Volatility, 1 yearlower is better | 35.84% | 31.95% | Rank 31 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF | Shares | Net debt, $B |
|---|---|---|---|---|---|
| 2016 | 8.8 | 4.3% | −$1.7B | 4.39B | 1.9 |
| 2017 | 11.7 | 7.2% | −$2.0B | 4.47B | 3.7 |
| 2018 | 15.8 | 10.2% | −$2.9B | 4.51B | 6.6 |
| 2019 | 20.2 | 12.9% | −$3.1B | 4.52B | 9.7 |
| 2020 | 25.0 | 18.3% | $1.9B | 4.54B | 8.1 |
| 2021 | 29.7 | 20.9% | −$132.0M | 4.55B | 9.4 |
| 2022 | 31.6 | 17.8% | $1.6B | 4.51B | 9.2 |
| 2023 | 33.7 | 20.6% | $6.9B | 4.49B | 9.9 |
| 2024 | 39.0 | 26.7% | $6.9B | 4.39B | 7.8 |
| 2025 | 45.2 | 29.5% | $9.5B | 4.34B | 5.4 |
5 of 7 StockScorer Score rules met · How the score is built
Netflix Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.
Netflix Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
5 of 7 rules met
8 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Netflix Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 25.1 | 21.7 |
| P/B ratio | 10.3 | 2.5 |
| Return on equity (ROE) | 41.3% | 11.4% |
| Equity ratio | 47.9% | 37.1% |
| Debt-to-equity (D/E) | 0.54 | 0.75 |
| Dividend yield | 0.0% | 2.8% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| NFLX | Netflix Incthis page | |
| DIS | Walt Disney Company | Low2.7 |
| LYV | Live Nation Entertainment Inc | Low3.6 |
| SKYD | Skydance Corporation | Low0.0 |
| UMG.AS | Universal Music Group N.V. | locked |
| TKO | TKO Group Holdings, Inc. | locked |
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