A Business at a Glance
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ABOUT US Netflix, Inc. (“Netflix”, the “Company”, “registrant”, “we”, or “us”) is one of the world’s leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members' experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable. BUSINESS SEGMENTS We operate as one operating segment.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 45.2B | 45.2B | 39.0B | 33.7B | 31.6B | 29.7B |
| Net Income | 11.0B | 11.0B | 8.7B | 5.4B | 4.5B | 5.1B |
| EPS | $2.53 | $2.53 | $1.98 | $1.20 | $1.00 | $1.12 |
| Free Cash Flow | 9.5B | 9.5B | 6.9B | 6.9B | 1.6B | -132M |
| ROIC | 35.9% | 36.7% | 29.6% | 21.6% | 16.5% | 21.5% |
| Gross Margin | 48.5% | 48.5% | 46.1% | 41.5% | 39.4% | 41.6% |
| Debt/Equity | 0.54 | 0.54 | 0.63 | 0.71 | 0.69 | 0.97 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 13.3B | 13.3B | 10.4B | 7.0B | 5.6B | 6.2B |
| Operating Margin | 29.5% | 29.5% | 26.7% | 20.6% | 17.8% | 20.9% |
| ROE | 41.3% | 42.8% | 35.2% | 26.3% | 21.6% | 32.3% |
| Shares Outstanding | 4,340M | 4,340M | 4,400M | 4,495M | 4,514M | 4,552M |
NETFLIX INC passes 7 of 9 quality checks, indicating strong fundamentals.
NETFLIX INC trades at 40.8x trailing earnings, compared to its 15-year median P/E of 50.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 47.3x vs a median of 50.5x. The company's 5-year average ROIC is 25.2% with a gross margin of 43.4%. Total shareholder yield (buybacks) is 2.0%. At current prices, the estimated annualized return to fair value is +45.9%.
NETFLIX INC (NFLX) has a current P/E ratio of 40.8, compared to its historical median P/E of 50.1. The stock is currently considered Fair based on its historical valuation range.
NETFLIX INC (NFLX) has a 5-year average return on invested capital (ROIC) of 25.2%. This indicates strong capital allocation and a potential competitive advantage.
NETFLIX INC (NFLX) has a market capitalization of $447.8B. It is classified as a mega-cap stock.
NETFLIX INC (NFLX) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.04%.
Based on historical P/E analysis, NETFLIX INC (NFLX) appears fair. The current P/E of 40.8 is 19% below its historical median of 50.1. The estimated fair value CAGR (P/E method) is 35.8%.
NETFLIX INC (NFLX) operates in the Services-Video Tape Rental industry, within the Communication Services sector.
NETFLIX INC (NFLX) reported annual revenue of $45.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
NETFLIX INC (NFLX) has a net profit margin of 24.3%. This is a strong margin indicating high profitability.
NETFLIX INC (NFLX) generated $9.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NETFLIX INC (NFLX) has a debt-to-equity ratio of 0.54. This indicates moderate leverage.
NETFLIX INC (NFLX) reported earnings per share (EPS) of $2.53 in its most recent fiscal year.
NETFLIX INC (NFLX) has a return on equity (ROE) of 42.8%. This indicates the company generates strong returns for shareholders.
NETFLIX INC (NFLX) has a 5-year average gross margin of 43.4%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for NETFLIX INC (NFLX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NETFLIX INC (NFLX) has a book value per share of $6.13, based on its most recent annual SEC filing.