Netflix, Inc.NFLX
NasdaqGS•Communication Services•Entertainment
Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
as of March 2026
Are revenues and earnings expanding?
$46.89B in TTM revenue grew 16.7% YoY, reaching $12.25B last quarter. TTM EBITDA of $14.29B on operating income of $3.96B shows growth is flowing through. Net income of $13.37B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 32.3% is up 0.6% YoY — cost efficiency is improving. Net margin at 43.1% and gross margin of 51.9%. ROE of 43.0% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 24.4x P/E, the stock trades in line with market averages — fairly valued. P/S of 7.0x and P/B of 10.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $61.02B in assets and $13.36B in long-term debt, the D/E of 0.4 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $5.09B on $5.29B in operating cash flow. The FCF / Net Income ratio of 0.4x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $12.27B provide financial flexibility.
Competitive analysis based on 68 quarters of fundamental data
Operating margins are expanding at ~28.7%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 38.2% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~29.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 68 quarters
Margins are stable or improving at ~29.8% — no sign of cost or pricing stress.
FCF covers net income by 0.8x on average — earnings are well-supported by cash generation.
D/E ratio is 0.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.