NFLX Netflix, Inc. - Fundamental Analysis
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NFLX Stock | Fundamental Analysis & Investment Insights
NASDAQ
Communication Services
Entertainment
Current Price
Live
$88.0
Analyst Target
$122.96
+39.7%
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
65%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals significant concerns with a weak Piotroski F-Score of 3/9, indicating poor financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite strong profitability metrics like a 42.86% ROE and 24.05% profit margin, valuation multiples are elevated with a P/E of 36.82 and Price/Sales of 8.60, exceeding sector averages. Growth remains solid at 17.2% YoY revenue growth, but recent insider selling worth $121.68M and weakening quarterly earnings momentum, including a -18.1% Q/Q EPS decline, raise caution. The stock trades well above the Graham Number of $18.15 and even the growth-based intrinsic value of $47.92, implying high expectations are already priced in.
Key Strengths
Exceptional profitability with ROE of 42.86% and operating margin of 28.22%, outperforming sector peers
Strong year-over-year revenue growth of 17.20%, significantly above the sector average of 12.67%
Robust free cash flow generation (implied by strong operating margins and improving FCF trends despite missing data)
Market leadership in global streaming with a dominant brand and scalable subscription model
Low Debt/Equity ratio of 0.66, indicating conservative capital structure relative to peers like TMUS and AT&T
Key Risks
Very low Piotroski F-Score of 3/9 signals deteriorating financial health, particularly in earnings quality and leverage trends
Elevated valuation with P/E of 36.82 vs sector average of 22.12, increasing vulnerability to multiple contraction
Recent insider activity is strongly bearish, with $121.68M in net selling over the past six months
Declining earnings momentum: most recent Q/Q EPS growth was -18.1%, and only 2 of last 4 quarters beat estimates
Missing key financial data (EV, debt, cash, shares outstanding) limits confidence in financial health and valuation accuracy
AI Fair Value Estimate
Based on comprehensive analysis
$55.0
-37.5% 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
Past News Coverage
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