NETFLIX INC (NFLX) Factsheet

NETFLIX INC (NFLX) Stock Analysis

Analysis from 10-Q filed 2026-10-21. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 29.9%. FCF margin 22.9%. D/E 0.5x. Source: 10-Q filed 2026-10-21.

Metric	Value	Context
ROIC	29.9%	Above industry average
FCF Margin	22.9%	Strong cash generation
Debt/Equity	0.5x	Moderate leverage

ROIC 29.9% — Top 5% of sector peers. FCF margin 22.9% — Top 5%.

Explore NETFLIX INC: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NFLX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: NETFLIX INC earns 29.9% ROIC, Top 5% in Consumer Discretionary

ROIC TTM 29.9%, sector median 6.8%, Top 5%. DuPont: NOPAT margin 26.1% × asset turnover 0.9x. Gross margin 50.7%. Operating margin 31.3%. Source: 10-Q filed 2026-10-21.

Metric	NFLX	Rating	Context
Return on Invested Capital (ROIC)	29.9%	Excellent	Above sector median of 6.8%
Return on Equity (ROE)	51.1%	Excellent	Efficient use of shareholder equity
Gross Margin	50.7%	Excellent	Strong pricing power
Operating Margin	31.3%	Excellent	Efficient operations

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Cash Flow: NETFLIX INC generates $11.4B FCF at 22.9% margin, positive NaN/8 quarters

FCF TTM $11.4B. FCF margin 22.9%, Top 5%. OCF/Net income 0.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-10-21.

Metric	NFLX	Rating	Context
Free Cash Flow Margin	22.9%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$11.4B	Good	Positive cash generation
OCF/Net Income	0.8x	Good	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: NETFLIX INC at 0.5x leverage, 18.2x interest coverage

Debt/Equity 0.5x. Total debt $15.1B, cash & investments $8.2B. Interest coverage 18.2x. Source: 10-Q filed 2026-10-21.

Metric	NFLX	Rating	Context
Debt to Equity	0.5x	Good	Moderate leverage
Net Cash Position	$-6.9B	Warning	Net debt position
Interest Coverage	18.2x	Excellent	Comfortable debt service

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Valuation: NETFLIX INC trades at 17.4x earnings

P/E 17.4x. EV/Sales 5.3x. FCF yield 4.4%. Source: 10-Q filed 2026-10-21.

Metric	NFLX	Rating	Context
P/E Ratio	17.4x	Adequate	Reasonable valuation
EV/Sales	5.3x	Adequate	Growth premium priced in
FCF Yield	4.4%	Good	Lower cash yield

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Capital Allocation: NETFLIX INC returns 5.0% shareholder yield

Total shareholder yield 5.0% (buyback 5.0%). Share count +869.1% YoY. Capital returned $12.9B TTM. Source: 10-Q filed 2026-10-21.

Metric	NFLX	Rating	Context
Total Shareholder Yield	5.0%	Good	Dividend + buyback yield combined
Buyback Yield	5.0%	Good	Active share repurchases
Share Count Change (YoY)	869.1%	Warning	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$12.9B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	29.9%	Top 5%	4.4x above
Free Cash Flow Margin	22.9%	Top 5%	7.0x above
Gross Margin	50.7%	Top 50%	1.3x above
Operating Margin	31.3%	Top 5%	7.4x above
Return on Equity (ROE)	51.1%	Top 10%	4.5x above
P/E Ratio	17.4x	N/A	-

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Financial Scorecard

Metric	NFLX	Rating	Sector Context
Return on Invested Capital (ROIC)	29.9%	Excellent	Top 5% of sector (median: 6.8%)
Free Cash Flow Margin	22.9%	Excellent	Top 5% of sector (median: 3.2%)
Gross Margin	50.7%	Excellent	Top 50% of sector (median: 38.1%)
Debt to Equity Ratio	51.7%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	17.4x	Adequate	Fair value
Free Cash Flow Yield	4.4%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is NETFLIX INC's Return on Invested Capital (ROIC)?

NETFLIX INC (NFLX) has a trailing twelve-month Return on Invested Capital (ROIC) of 29.9%. The 8-quarter median ROIC is 29.9% with a improving trend. Sector median 6.8%. Source: 10-Q filed 2026-10-21.

Q: What is NETFLIX INC's Free Cash Flow Margin?

NETFLIX INC (NFLX) has a free cash flow margin of 22.9%, generating $11.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-10-21.

Q: What is NETFLIX INC's P/E ratio and how does it compare to peers?

NETFLIX INC (NFLX) trades at a P/E ratio of 17.4x, which is above the sector median of N/A. EV/Sales 5.3x. FCF yield 4.4%. Source: 10-Q filed 2026-10-21.

Q: How much debt does NETFLIX INC have?

NETFLIX INC (NFLX) has a debt-to-equity ratio of 0.5x with total debt of $15.1 billion. Interest coverage 18.2x. Net debt $6.9 billion. Source: 10-Q filed 2026-10-21.

Q: What is NETFLIX INC's revenue and earnings growth?

NETFLIX INC (NFLX) grew revenue by 14.7% year-over-year. EPS +44.6% YoY. Source: 10-Q filed 2026-10-21.

Q: Is NETFLIX INC buying back stock?

NETFLIX INC (NFLX) repurchased $12.9 billion of stock over the trailing twelve months. This represents a buyback yield of 5.0%. Share count +869.1% YoY. Source: 10-Q filed 2026-10-21.

Q: How does NETFLIX INC compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, NETFLIX INC (NFLX) shows: ROIC 29.9%, sector median 6.8% (Top 5%). FCF margin 22.9%, sector median 3.2% (Top 5%). Gross margin 50.7%, 12.6pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with NETFLIX INC?

No quantitative warning flags fired for NETFLIX INC (NFLX) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-10-21.

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Data Source: Data sourced from 10-Q filed 2026-10-21. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.