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

Netflix, Inc.

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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

With a growth in Operating Profit of 4.23%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 11,970.82 MM
ROCE(HY) Highest at 49.54%
NET SALES(Q) Highest at USD 12,607.57 MM

High Institutional Holdings at 90.88%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 9.62% over the previous quarter.

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.

-37.47%

-0.90

98.12%

S&P 500

21.51%

1.63

13.19%

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 11,970.82 MM

ROCE(HY)

Highest at 49.54%

NET SALES(Q)

Highest at USD 12,607.57 MM

INTEREST COVERAGE RATIO(Q)

Highest at 4,918.67

RAW MATERIAL COST(Y)

Fallen by -0.06% (YoY

CASH AND EQV(HY)

Highest at USD 21,426.73 MM

DEBT-EQUITY RATIO (HY)

Lowest at 24.9 %

OPERATING PROFIT(Q)

Highest at USD 8,652.97 MM

PRE-TAX PROFIT(Q)

Highest at USD 4,084.52 MM

NET PROFIT(Q)

Highest at USD 3,414.74 MM

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Netflix, Inc.

Operating Cash Flow

Highest at USD 11,970.82 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 12,607.57 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Interest Coverage Ratio

Highest at 4,918.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at USD 8,652.97 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 4,084.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 3,414.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 21,426.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 24.9 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.06% (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