Don't Buy Netflix (NFLX) Before Checking Its Fundamentals!

Large-cap consumer discretionary company Netflix has moved 2.6% this afternoon, reaching $382.37 per share. In contrast, the average analyst target price for the stock is $468.97.

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company is based in the United States.

What to Consider if You Are Thinking of Buying Netflix:

  • Netflix has moved 70.0% over the last year.

  • NFLX has a forward P/E ratio of 24.8 based on its EPS guidance of 15.42.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 39.9%.

  • The company has a price to earnings growth (PEG) ratio of 1.31.

  • Its Price to Book (P/B) ratio is 7.42

Netflix Has an Unconvincing Cash Flow History

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023-01-26 2,026,257 -407,729 2,433,986 165.37
2022-01-27 392,610 -524,585 917,195 -68.64
2021-01-28 2,427,077 -497,923 2,925,000 211.04
2020-01-29 -2,887,322 -253,035 -2,634,287 -5.1
2019-02-08 -2,680,479 -173,946 -2,506,533 -61.48
2018-01-29 -1,785,948 -233,711 -1,552,237

Netflix's recent cash flow history is disappointing. They've averaged $-69.48 Million over the last 6 years while displaying a coefficient of variability of 6186620171.4%. During this time, they grew at a 0.0% compounded yearly 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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