# NetFlix Inc (NFLX) — Stock CV

NetFlix Inc 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.

> 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.

## Identity

- **Ticker**: NFLX
- **Sector**: Consumer Cyclical
- **Industry**: Services-Video Tape Rental
- **Headquarters**: LOS GATOS, CA
- **Employees**: 16 000
- **Website**: https://www.netflix.com
- **Market cap**: $293B
- **Last price**: $70.32
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $48.4B
- **Net income**: $13.6B
- **Free cash flow**: $11.2B
- **Net debt**: $5.40B
- **P/E**: 21.4
- **Revenue growth (YoY)**: 16.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 61 |
| Growth | 82 |
| Profitability | 100 |
| Health | 82 |
| Quality | 76 |
| Moat | 43 |

## Qualifications (beginner checklist) — 10 of 10 passed

- [x] Revenue growing — +16.0% YoY
- [x] Profitable — $13.6B TTM
- [x] Profit growing — +36.4% YoY
- [x] Generates cash — $11.2B TTM
- [x] Debt under control — ~0.5y of cash flow to repay
- [x] Established company — $293B market cap
- [x] Not printing shares — -4.4% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 8.3 — safe
- [x] Valuation not extreme — P/E 21.4

## Experience (career milestones)

- **FY2025** — Best year on record: $11.0B net income
- **2023** — Netflix released its first "What We Watched: A Netflix Engagement Report", a look at viewership…
- **Apr 19, 2022** — First subscriber loss in a decade: triggered the ad-tier and password-crackdown era
- **2021** — Trial offerings were first launched for Netflix users in Poland in August 2021, offering premium mobile games based…
- **2018** — The first game, Minecraft: Story Mode, was released in November 2018
- **Feb 4, 2018** — Netflix acquired the rights to The Cloverfield Paradox (2018) from Paramount Pictures for $50…
- **FY2017** — Revenue crossed $10B: $11.7B for the year
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $8.83B in first reported year
- **2015** — Netflix launched in Japan, its first country in Asia
- **2013** — Later that month, Netflix announced an agreement with DreamWorks Animation to commission children's television…
- **Feb 1, 2013** — House of Cards: first original — turned a distributor into a studio
- **2010** — Netflix launched in Canada, its first international market
- **2007** — Streaming launches: "Watch Now" — the pivot that ate the DVD business
- **May 23, 2002** — IPO on Nasdaq: went public at $15 per share
- **1999** — Subscription model: flat monthly fee, no late fees — the Blockbuster killer
- **Aug 29, 1997** — Founded as a DVD-by-mail service: Reed Hastings and Marc Randolph in Scotts Valley

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $29.7B | $5.12B | -$132M |
| FY2022 | $31.6B | $4.49B | $1.62B |
| FY2023 | $33.7B | $5.41B | $6.93B |
| FY2024 | $39.0B | $8.71B | $6.92B |
| FY2025 | $45.2B | $11.0B | $9.46B |

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Source: https://stockcv.com/NFLX — derived from company filings; may be delayed or incomplete. Information, not investment advice.