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Netflix (NFLX) Stock Analysis

This is a peer-relative look at Netflix (NFLX): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Netflix (NFLX)
Profile ItemNFLX
NameNetflix Inc.
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryEntertainment
GICS Sub-IndustryMovies & Entertainment
Market Capitalization325.83 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateMay 23, 2002
Security TypeCommon Stock

Price Performance

Cumulative Growth

NFLX
GSPC
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Netflix (NFLX) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Netflix (NFLX) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Netflix (NFLX) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
Total Return (1Y)-37.77%1.43%
Total Return (3Y, Annualized)21.17%8.03%
Total Return (5Y, Annualized)5.79%-8.01%

Risk Profile

Drawdown History

NFLX
GSPC
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Netflix (NFLX) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Netflix (NFLX) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
Volatility (1Y, Annualized)35.84%45.28%
Beta (5Y)1.600.98
Max Drawdown (5Y)-75.95%-74.13%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. NFLX is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
Sharpe Ratio (1Y)-1.17-0.06
Sortino Ratio (1Y)-1.57-0.09

Profitability

ROE (TTM)

Netflix (NFLX) posts ROE of 49.54%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

NFLX

Media & Entertainment industry group

49.54%

Group distribution
NFLX
49.54%
Max
45.82%
Q3
16.13%
Median
6.69%
Q1
-4.15%
Min
-26.31%
Largest peers
NFLX
49.54%
GOOGL
48.68%
GOOG
48.68%
SPOT
44.48%
META
29.85%
CMCSA
11.49%
DIS
8.01%
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Where Netflix (NFLX) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Netflix (NFLX) keeps 28.22% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

NFLX

Media & Entertainment industry group

28.22%

Group distribution
Max
29.84%
NFLX
28.22%
Q3
9.84%
Median
4.33%
Q1
-3.96%
Min
-17.61%
Largest peers
GOOGL
54.77%
GOOG
54.77%
META
29.84%
NFLX
28.22%
SPOT
18.43%
CMCSA
8.97%
DIS
8.70%
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Where Netflix (NFLX) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Netflix (NFLX) turns 33.38% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

NFLX

Media & Entertainment industry group

33.38%

Group distribution
Max
40.16%
NFLX
33.38%
Q3
18.59%
Median
10.43%
Q1
0.85%
Min
-19.55%
Largest peers
META
34.83%
GOOGL
34.03%
GOOG
34.03%
NFLX
33.38%
DIS
19.30%
CMCSA
17.23%
SPOT
13.71%
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Where Netflix (NFLX) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
ROE (TTM)49.54%6.69%
ROA (TTM)16.09%2.74%
Net Margin (TTM)28.22%4.33%
Operating Margin (TTM)33.38%10.43%
Gross Margin (TTM)49.12%53.60%

Growth

Revenue Growth

Netflix (NFLX) grew revenue 15.85%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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Netflix (NFLX): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

Netflix (NFLX) grew earnings per share 27.58%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Netflix (NFLX): EPS Growth across different time periods, set against Media & Entertainment industry-group medians.

Growth Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
Revenue Growth (YoY)15.85%4.82%
Revenue Growth (3Y CAGR)12.64%4.72%
EPS Growth (YoY)27.58%-1.55%
EPS Growth (3Y CAGR)36.49%22.64%

Financial Strength

Current Ratio (MRQ)

Netflix (NFLX) has current ratio of 1.14, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

NFLX

Media & Entertainment industry group

1.14

Group distribution
Max
4.50
Q3
2.38
Median
1.41
NFLX
1.14
Q1
0.87
Min
0.23
Largest peers
GOOGL
2.72
GOOG
2.72
META
2.23
SPOT
2.11
NFLX
1.14
CMCSA
0.80
DIS
0.71
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Where Netflix (NFLX) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Netflix (NFLX) has debt-to-equity ratio of 0.55, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

NFLX

Media & Entertainment industry group

0.55

Group distribution
Max
3.84
Q3
1.70
NFLX
0.55
Median
0.55
Q1
0.17
Min
0.00
Largest peers
CMCSA
1.00
NFLX
0.55
META
0.43
DIS
0.39
GOOGL
0.19
GOOG
0.19
SPOT
0.06
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Where Netflix (NFLX) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
Current Ratio (MRQ)1.141.41
Debt / Equity (MRQ)0.550.55
Net Debt / EBITDA0.511.75

Dividends

Dividend Yield (TTM)

Netflix (NFLX) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

NFLX

Media & Entertainment industry group

0.00%

Group distribution
Max
1.40%
Q3
0.58%
NFLX
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
4.95%
DIS
1.40%
META
0.34%
GOOG
0.25%
GOOGL
0.25%
NFLX
0.00%
SPOT
0.00%
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Where Netflix (NFLX) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Netflix (NFLX) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

NFLX

Media & Entertainment industry group

0.00%

Group distribution
Max
43.37%
Q3
19.42%
NFLX
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
42.31%
DIS
30.93%
META
7.91%
GOOGL
4.26%
GOOG
4.26%
NFLX
0.00%
SPOT
0.00%
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Where Netflix (NFLX) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Netflix (NFLX) trades at P/E ratio of 24.61, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

NFLX

Media & Entertainment industry group

24.61

Group distribution
Max
70.74
Q3
37.84
NFLX
24.61
Median
18.97
Q1
10.76
Min
1.78
Largest peers
SPOT
29.42
NFLX
24.61
META
23.26
DIS
21.71
GOOGL
16.97
GOOG
16.83
CMCSA
8.49
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Where Netflix (NFLX) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Netflix (NFLX) trades at 6.74 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

NFLX

Media & Entertainment industry group

6.74

Group distribution
Max
6.88
NFLX
6.74
Q3
3.57
Median
1.43
Q1
0.53
Min
0.00
Largest peers
GOOGL
9.28
GOOG
9.20
META
6.88
NFLX
6.74
SPOT
6.16
DIS
1.84
CMCSA
0.75
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Where Netflix (NFLX) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Netflix (NFLX) trades at 10.81 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

NFLX

Media & Entertainment industry group

10.81

Group distribution
NFLX
10.81
Max
10.81
Q3
4.77
Median
1.92
Q1
0.74
Min
-4.11
Largest peers
SPOT
11.39
NFLX
10.81
GOOGL
6.65
GOOG
6.59
META
6.02
DIS
1.66
CMCSA
1.05
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Where Netflix (NFLX) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Netflix (NFLX) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: NFLXIndustry group median
P/E Ratio (TTM)24.6118.97
P/S Ratio (TTM)6.741.43
P/B Ratio (MRQ)10.811.92
Free Cash Flow Yield (TTM)7.79%7.16%