NETFLIX INC (NFLX) Factsheet
NETFLIX INC (NFLX) Stock Analysis
Analysis from 10-Q filed 2025-10-22. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 28.5%. FCF margin 25.4%. D/E 0.5x. Source: 10-Q filed 2025-10-22.
| Metric | Value | Context |
|---|---|---|
| ROIC | 28.5% | Above industry average |
| FCF Margin | 25.4% | Strong cash generation |
| Debt/Equity | 0.5x | Conservative leverage |
ROIC 28.5% — Top 5% of sector peers. FCF margin 25.4% — Top 5%.
Explore NETFLIX INC: Earnings History | Filings
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_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: NETFLIX INC earns 28.5% ROIC, Top 5% in Consumer Discretionary
ROIC TTM 28.5%, sector median 7.7%, Top 5%. DuPont: NOPAT margin 24.8% × asset turnover 0.9x. Gross margin 49.0%. Operating margin 29.7%. Source: 10-Q filed 2025-10-22.
| Metric | NFLX | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.5% | Excellent | Above sector median of 7.7% |
| Return on Equity (ROE) | 50.9% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 49.0% | Good | Strong pricing power |
| Operating Margin | 29.7% | Excellent | Efficient operations |
Cash Flow: NETFLIX INC generates $11.9B FCF at 25.4% margin, positive NaN/8 quarters
FCF TTM $11.9B. FCF margin 25.4%, Top 5%. OCF/Net income 0.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-22.
| Metric | NFLX | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 25.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $11.9B | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: NETFLIX INC at 0.5x leverage
Debt/Equity 0.5x. Total debt $14.4B, cash & investments $12.3B. Source: 10-Q filed 2025-10-22.
| Metric | NFLX | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Conservative capital structure |
| Net Cash Position | $-2.1B | Warning | Net debt position |
Valuation: NETFLIX INC trades at 30.5x earnings
P/E 30.5x. EV/Sales 8.9x. FCF yield 2.9%. Source: 10-Q filed 2025-10-22.
| Metric | NFLX | Rating | Context |
|---|---|---|---|
| P/E Ratio | 30.5x | Adequate | Premium valuation |
| EV/Sales | 8.9x | Adequate | Growth premium priced in |
| FCF Yield | 2.9% | Adequate | Lower cash yield |
Capital Allocation: NETFLIX INC returns 1.7% shareholder yield
Total shareholder yield 1.7% (buyback 1.7%). Capital returned $6.9B TTM. Source: 10-Q filed 2025-10-22.
| Metric | NFLX | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.7% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 1.7% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $6.9B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.5% | Top 5% | 3.7x above |
| Free Cash Flow Margin | 25.4% | Top 5% | 11.4x above |
| Gross Margin | 49.0% | Top 50% | 1.3x above |
| Operating Margin | 29.7% | Top 5% | 7.0x above |
| Return on Equity (ROE) | 50.9% | Top 10% | 4.8x above |
| P/E Ratio | 30.5x | N/A | - |
Financial Scorecard
| Metric | NFLX | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.5% | Excellent | Top 5% of sector (median: 7.7%) |
| Free Cash Flow Margin | 25.4% | Excellent | Top 5% of sector (median: 2.2%) |
| Gross Margin | 49.0% | Good | Top 50% of sector (median: 38.7%) |
| Debt to Equity Ratio | 46.1% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 30.5x | Adequate | Growth premium |
| Free Cash Flow Yield | 2.9% | Warning | Growth-focused valuation |
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 28.5%. Sector median 7.7%. Source: 10-Q filed 2025-10-22.
Q: What is NETFLIX INC's Free Cash Flow Margin?
NETFLIX INC (NFLX) has a free cash flow margin of 25.4%, generating $11.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-22.
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 30.5x, which is above the sector median of N/A. EV/Sales 8.9x. FCF yield 2.9%. Source: 10-Q filed 2025-10-22.
Q: What is NETFLIX INC's revenue and earnings growth?
NETFLIX INC (NFLX) grew revenue by 16.7% year-over-year. EPS +46.1% YoY. Source: 10-Q filed 2025-10-22.
Q: Is NETFLIX INC buying back stock?
NETFLIX INC (NFLX) repurchased $6.9 billion of stock over the trailing twelve months. This represents a buyback yield of 1.7%. Source: 10-Q filed 2025-10-22.
Q: How does NETFLIX INC compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, NETFLIX INC (NFLX) shows: ROIC 28.5%, sector median 7.7% (Top 5%). FCF margin 25.4%, sector median 2.2% (Top 5%). Gross margin 49.0%, 10.3pp 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 2025-10-22.
Data Source: Data sourced from 10-Q filed 2025-10-22. TTM metrics as of Q1 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.