Netflix, Inc.
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 de…
What to know about NFLX
Netflix, Inc. is a Communication Services company with a mixed financial profile. It scores well on size and profitability, but valuation is worth keeping an eye on.
Should you consider NFLX?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Netflix, Inc. is a Communication Services company with a mixed overall financial profile — it sits in the upper half of Communication Services stocks (9 of 24).
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The business is both profitable and financially healthy — it keeps a good portion of what it earns and carries its debt comfortably.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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Growth is a clear strength — revenue and earnings are expanding faster than most peers, signalling strong demand for the company's products or services.
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This stock pays no dividend — your return depends entirely on the share price rising over time.
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Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
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Analyst sentiment is broadly positive and short interest is low — professionals who cover this stock are mostly optimistic about its near-term prospects.
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On balance the positives outweigh the concerns — worth a closer look if Communication Services fits your investment goals.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how NFLX compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 24.96 | Above avg |
| Forward P/E | 20.14 | Average |
| PEG Ratio | 1.55 | Above avg |
| Price to Sales | 6.95 | Below avg |
| Price to Book | 10.47 | Below avg |
| EV/EBITDA | 23.52 | Below avg |
| Earnings Yield | 4.01% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 49.03% | Above avg |
| Operating Margin | 32.30% | Top 25% |
| Net Profit Margin | 28.52% | Top 25% |
| Return on Equity | 48.49% | Top 25% |
| Return on Invested Capital | 15.40% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 16.20% | Top 25% |
| Revenue Growth (3Y CAGR) | 12.64% | Top 25% |
| EPS Growth (YoY) | 86.40% | Top 25% |
| Free Cash Flow Growth | 36.68% | Top 25% |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.41 | Above avg |
| Debt to Equity | 0.54 | Above avg |
| Interest Coverage | 17.38 | Top 25% |
| Altman Z-Score | 9.47 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | — | N/A |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 3.65% | Average |
| OCF to Sales | 26.98% | Above avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.49 | Below avg |
| Volatility (30-Day) | 23.67% | Top 25% |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 2.43% | Above avg |
| Avg. Analyst Rating | 1.68 | Above avg |
| Target Upside % | 47.51% | Top 25% |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 325.83B | Top 25% |
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