Netflix, Inc.NFLX
NMS • Communication Services
$80.14
P/E
24.81
PEG
2.82
FCF Yield
2.8%
Rev Growth YoY
+13.4% YoY
Gross Margin
51.9%
Health Score
8/10
D/E Ratio
0.47
Confidence
MEDIUM
Business Snapshot
Netflix operates the world's leading subscription streaming service, generating revenue primarily through monthly membership fees across its global subscriber base. The company operates in the highly competitive entertainment industry, competing against both traditional media companies and newer streaming entrants, though it maintains a dominant market position as the largest pure-play streaming platform. At $333.70B market cap, Netflix is a large-cap company with TTM revenue of $48.37B, reflecting substantial financial scale. The defining characteristic of this business is its global subscriber network effects — the scale of its content investment is spread across a massive installed base, creating a competitive moat that smaller rivals struggle to replicate. However, the current price of $80.14 sits well below the 52-week high of $126.71, indicating a significant drawdown from peak levels.
Financial Health
Gross margin stands at 51.9%, unchanged from the prior year, while net margin (TTM) is a healthy 28.2%, reflecting efficient cost conversion. The balance sheet is conservative with debt/equity of just 0.47x and a current ratio of 1.14x, providing adequate short-term liquidity without excessive leverage...
Risk Assessment
VALUATION — P/E of 24.81x is significantly elevated versus the sector average of 18.2x, implying investors are paying a 36% premium for growth.
EARNINGS QUALITY — 0 of the last 4 quarters beat analyst estimates, indicating persistent guidance missteps or execution shortfalls.
REVENUE DECELERATION — QoQ revenue growth of 2.5% is notably below the 13.4% YoY pace, suggesting the growth trajectory is slowing.
TECHNICALS — Price of $80.14 sits below the 200-day MA of $88.73, confirming an established downtrend, while the death cross formation reinforces bearish momentum.
52-WEEK POSITION — Trading at $80.14 versus the 52-week high of $126.71, the stock remains 36.8% below its peak, with the current price below the midpoint of the $65.08-$126.71 range.
INSIDER — 5 insider sells versus 0 buys over the last 90 days signals that insiders are reducing their exposure at current levels....
Gross margin stands at 51.9%, unchanged from the prior year, while net margin (TTM) is a healthy 28.2%, reflecting efficient cost conversion. The balance sheet is conservative with debt/equity of just 0.47x and a current ratio of 1.14x, providing adequate short-term liquidity without excessive leverage. Free cash flow is strongly positive at $9.46B, though the FCF yield of 2.8% is modest relative to the share price. Return on equity is exceptional at 49.5%, indicating Netflix generates substantial shareholder returns on its equity base. Overall, this is a financially strong company with meaningful cash generation capability, giving ample capacity for continued content reinvestment and potential shareholder returns. The stable gross margin and robust FCF position indicate a durable business model with no immediate liquidity concerns.
VALUATION — P/E of 24.81x is significantly elevated versus the sector average of 18.2x, implying investors are paying a 36% premium for growth. EARNINGS QUALITY — 0 of the last 4 quarters beat analyst estimates, indicating persistent guidance missteps or execution shortfalls. REVENUE DECELERATION — QoQ revenue growth of 2.5% is notably below the 13.4% YoY pace, suggesting the growth trajectory is slowing. TECHNICALS — Price of $80.14 sits below the 200-day MA of $88.73, confirming an established downtrend, while the death cross formation reinforces bearish momentum. 52-WEEK POSITION — Trading at $80.14 versus the 52-week high of $126.71, the stock remains 36.8% below its peak, with the current price below the midpoint of the $65.08-$126.71 range. INSIDER — 5 insider sells versus 0 buys over the last 90 days signals that insiders are reducing their exposure at current levels.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives