Why Are People Talking About Investing in Netflix (NFLX)?

After moving -0.1% during today's evening session, Netflix is now trading at a price of $442.8 per share. On average, analysts give it a target price of $432.13.

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages.

Netflix Investors Should Consider This:

  • Netflix has moved 90.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 1.77. A number between 0 and 1 could mean that the market is undervaluing Netflix's estimated growth potential

  • Its Price to Book (P/B) ratio is 8.59

Understanding Netflix's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-01-26 31,615,550 -6,814,434 18 -14.29
2022-01-27 29,697,844 -6,170,652 21 16.67
2021-01-28 24,996,056 -5,134,448 18 38.46
2020-01-29 20,156,447 -5,111,980 13 30.0
2019-02-08 15,794,341 -4,221,577 10 42.86
2018-01-29 11,692,713 -2,821,034 7

Over the last 6 years, Netflix's operating margins have averaged 14.5%, which is better than the 4.35% Discount Store industry average. We also note that the company's operating margins have a high coefficient of variability at 37.2%. In addition, the firm's margins benefit from a 16.9% yearly growth rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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