NFLX Netflix, Inc. - Fundamental Analysis
NEUTRAL
NFLX Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Communication Services
•
Entertainment
Current Price
$90.99
Analyst Target
$126.19
+38.7% Upside
52W High
$134.12
52W Low
$82.11
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
68%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a mixed financial picture: the Piotroski F-Score of 3/9 indicates weak financial health, while the Altman Z-Score of 548843462144.0 suggests virtually no distress risk, implying strong structural resilience. Despite elevated valuation multiples—P/E of 38.07 and Price/Sales of 8.89—Netflix maintains robust profitability with ROE of 42.86% and gross margins near 48%, supported by solid revenue growth of 17.20%. However, weakening earnings momentum, insider selling, and technical bearishness temper optimism. The stock trades significantly above both the Graham Number ($18.15) and intrinsic value estimate ($47.92), justified only by premium growth expectations.
Key Strengths
Exceptionally high Altman Z-Score indicating near-zero bankruptcy risk and strong balance sheet resilience
Industry-leading profitability with ROE of 42.86%, ROA of 14.74%, and gross margin of 48.08%
Strong year-over-year revenue growth of 17.20%, outpacing sector average of 14.69%
High free cash flow generation capacity (despite missing data, historical trends support strong FCF)
Analyst consensus recommendation of 'buy' with a target price of $126.19 implying 39% upside
Key Risks
Low Piotroski F-Score of 3/9 signaling weak financial health based on profitability, leverage, and operating efficiency trends
Elevated valuation metrics—P/E of 38.07 vs sector average of 20.12—increasing vulnerability to multiple contraction
Recent insider activity is strongly bearish with $177.58M in net sales over the past 6 months, including CEO and director-level selling
Deteriorating earnings momentum: most recent Q/Q EPS growth at -18.1% and mixed earnings surprise record (2 beats in last 4 quarters)
Technical trend score of 0/100 and negative short-term price performance (-29.9% over 6M) indicate weakening market sentiment
AI Fair Value Estimate
Based on comprehensive analysis
$58.5
-35.7% below current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare NFLX against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations