Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally.
It is a $293B consumer company. Revenue grew 16.0% over the last year, it keeps 28¢ of every dollar of sales as profit, and its net debt equals ~0.5 years of free cash flow. It trades at 21.4× earnings — near the lowest of its own history.
- Website
- netflix.com
- Location
- Los Gatos, CA
- Employees
- 16 000
- Sector
- Consumer Cyclical
- Founded
- 1997
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong growth, profitability, health and quality; Moat lags behind.
Valuation61
- P/E vs own history10th pct · 25/25
- FCF yield3.8% · 12/25
- P/S6.1x · 12/25
- EV/EBITDA17.0x · 12/25
Growth82
- Revenue CAGR11.1% · 20/25
- Net income CAGR21.0% · 25/25
- EPS CAGR ~5Y33.0% · 25/25
- Fwd implied growth11.6% · 12/25
Profitability100
- ROIC34.3% · 25/25
- ROE48.0% · 25/25
- Net margin28.2% · 25/25
- Operating margin35.5% · 25/25
Health82
- Altman Z8.35 · 25/25
- Current ratio1.14 · 12/25
- Interest coverage22.1x · 25/25
- Net cash / debtD/A 10% · 20/25
Quality76
- Piotroski F7/9 · 22/25
- Beneish M-2.39 · 20/25
- FCF conversion82% · 22/25
- Margin stabilityσ 9.1% · 12/25
Moat43
- ROIC >12% years6/10 yrs · 13/25
- Median gross margin39.1% · 13/25
- FCF-positive years5/10 yrs · 5/25
- Worst-year net marginworst 2.1% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2025FinancialBest year on record$11.0B net income
- 2023ProductNetflix released its first "What We Watched: A Netflix Engagement Report", a look at viewership…
- Apr 19, 2022MilestoneFirst subscriber loss in a decadetriggered the ad-tier and password-crackdown era
- 2021ProductTrial offerings were first launched for Netflix users in Poland in August 2021, offering premium mobile games based…
- 2018ProductThe first game, Minecraft: Story Mode, was released in November 2018
- Feb 4, 2018AcquisitionNetflix acquired the rights to The Cloverfield Paradox (2018) from Paramount Pictures for $50…
- FY2017FinancialRevenue crossed $10B$11.7B for the year
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $1B$8.83B in first reported year
- 2015ProductNetflix launched in Japan, its first country in Asia
- 2013MilestoneLater that month, Netflix announced an agreement with DreamWorks Animation to commission children's television…
- Feb 1, 2013ProductHouse of Cardsfirst original — turned a distributor into a studio
- 2010ProductNetflix launched in Canada, its first international market
- 2007ProductStreaming launches"Watch Now" — the pivot that ate the DVD business
- May 23, 2002IPOIPO on Nasdaqwent public at $15 per share
- 1999ProductSubscription modelflat monthly fee, no late fees — the Blockbuster killer
- Aug 29, 1997FoundedFounded as a DVD-by-mail serviceReed Hastings and Marc Randolph in Scotts Valley
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (49.1%)
- Strongly profitable — 28.2% net margin
- Revenue growing 16.0% year over year
- Strong cash conversion — FCF is 23.1% of revenue
- Could repay net debt from ~0.7 years of free cash flow
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+16.0% YoY
- Profitable — makes more than it spends$13.6B TTM
- Profit growing — earnings are higher than last year+36.4% YoY
- Generates cash — cash left after running and investing$11.2B TTM
- Debt under control — could handle its obligations~0.5y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$293B market cap
- Not printing shares — share count not ballooning — you keep your slice-4.4% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 8.3 — safe
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 21.4
Peer comparisonNetFlix Inc vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| NFLX this company | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| HD Home Depot, Inc. | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| MCD McDonald's Corporation | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
| TJX TJX Companies, Inc. (The) | $153.0B | 25.2 | +7.7% | 9.7% | Mixed |
Head-to-head: NFLX vs AMZN · NFLX vs TSLA · NFLX vs HD
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/NFLX
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of NFLX on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $70.32 · market cap $293B.