April 14, 2025 a 12:00 pm
NFLX: Fundamental Ratio Analysis - Netflix, Inc.
Netflix, Inc. demonstrates strong fundamentals in the entertainment sector, though its current valuation metrics are mixed. With a global subscriber base, the company's return ratios are favorable but faced with headwinds in terms of price-earnings and debt-equity dynamics. Investors should consider these elements when evaluating NFLX as a potential addition to a diversified portfolio.
Fundamentals Rating
Netflix's fundamental ratings reveal a balanced overview with strengths in return metrics though concerns with valuation ratios.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 2 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 2 | |
| Price to Earnings | 1 | |
| Price to Book | 1 |
Historical Rating
Netflix's scores show stability over recent assessments but highlight consistent areas of potential improvement.
| Date | Overall Score | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-04-11 | 3 | 2 | 5 | 5 | 2 | 1 | 1 |
| -- | 0 | 2 | 5 | 5 | 2 | 1 | 1 |
Analyst Price Targets
Analysts present a positive outlook on Netflix shares, with substantial high and median price targets.
| High | Low | Median | Consensus |
|---|---|---|---|
| 1200 | 680 | 882.5 | 926.5 |
Analyst Sentiment
Analyst sentiment maintains a predominantly bullish stance on Netflix with a significant proportion of Buy recommendations.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 59 | |
| Hold | 25 | |
| Sell | 6 | |
| Strong Sell | 0 |
Conclusion
Netflix, Inc. portrays a mixed financial profile with strengths in operational metrics but challenges in valuation. The prevailing positive analyst sentiment suggests potential growth, supported by high target prices, although market conditions and execution risks persist. Investors should weigh these dynamics against broader market forces when considering positions. Overall, Netflix remains a prominent player in the entertainment sector, continually evolving its strategy to capture global consumption trends.