Netflix, Inc. (NFLX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Netflix, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 26.39%

Healthy long term growth as Net Sales has grown by an annual rate of 12.61% and Operating profit at 23.96%
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.49 times

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 12,650.27 MM
ROCE(HY) Highest at 48.5%
DEBT-EQUITY RATIO (HY) Lowest at 14.29 %

With ROCE of 41.33%, it has a fair valuation with a 12.36 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -36.69%, its profits have risen by 26.1%

High Institutional Holdings at 81.26%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Netflix, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Netflix, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Netflix, Inc.

-36.69%

-0.91

97.03%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.61%

EBIT Growth (5y)

23.96%

EBIT to Interest (avg)

9.85

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.99

Tax Ratio

12.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

81.26%

ROCE (avg)

26.39%

ROE (avg)

29.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.86

EV to EBIT

29.91

EV to EBITDA

13.30

EV to Capital Employed

12.36

EV to Sales

8.86

PEG Ratio

Dividend Yield

ROCE (Latest)

41.33%

ROE (Latest)

41.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 12,650.27 MM

ROCE(HY)

Highest at 48.5%

DEBT-EQUITY RATIO (HY)

Lowest at 14.29 %

NET SALES(Q)

Highest at USD 12,382.27 MM

RAW MATERIAL COST(Y)

Fallen by -6.48% (YoY

CASH AND EQV(HY)

Highest at USD 21,363.13 MM

OPERATING PROFIT(Q)

Highest at USD 8,405.09 MM

PRE-TAX PROFIT(Q)

Highest at USD 3,742.14 MM

EPS(Q)

Highest at USD 1.23

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,207.11

INTEREST(Q)

Highest at USD 262.08 MM

Here's what is working for Netflix, Inc.

Operating Cash Flow

Highest at USD 12,650.27 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 12,382.27 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Debt-Equity Ratio

Lowest at 14.29 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit

Highest at USD 8,405.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 3,742.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 1.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 21,363.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Netflix, Inc.

Interest

At USD 262.08 MM has Grown at 11.81%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 3,207.11

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 262.08 MM

in the last five periods and Increased by 11.81% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)