Netflix Inc.
Find Ratings ReportsNETFLIX INC's gross profit margin for the fourth quarter of its fiscal year 2023 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. NETFLIX INC has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 8832.83 | 7852.05 |
EBITDA ($mil) | 1582.68 | 643.29 |
EBIT ($mil) | 1496.11 | 549.9 |
Net Income ($mil) | 937.84 | 55.28 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 7137.89 | 6058.45 |
Total Assets ($mil) | 48731.99 | 48594.77 |
Total Debt ($mil) | 16973.37 | 16931.56 |
Equity ($mil) | 20588.31 | 20777.4 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 40.89 | 32.36 |
EBITDA Margin | 17.91 | 8.19 |
Operating Margin | 16.94 | 7.0 |
Sales Turnover | 0.69 | 0.65 |
Return on Assets | 11.09 | 9.24 |
Return on Equity | 26.27 | 21.62 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.12 | 1.17 |
Debt/Capital | 0.45 | 0.45 |
Interest Expense | 175.21 | 170.6 |
Interest Coverage | 8.54 | 3.22 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 432.76 | 445.35 |
Div / share | 0.0 | 0.0 |
EPS | 2.11 | 0.12 |
Book value / share | 47.57 | 46.65 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4645529.0 | 5117292.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 42.52 for the Broadcasting and Content Providers subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 12.89 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 5.70. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, NETFLIX INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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NFLX 51.04 | Peers 42.52 | NFLX 36.47 | Peers 19.70 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. NFLX is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. NFLX is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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NFLX 28.87 | Peers 19.13 | NFLX 1.18 | Peers 0.73 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. NFLX is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. NFLX trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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NFLX 12.89 | Peers 5.70 | NFLX 20.70 | Peers 37.80 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. NFLX is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, NFLX is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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NFLX 7.87 | Peers 3.80 | NFLX 6.66 | Peers 3.92 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. NFLX is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. NFLX has a sales growth rate that significantly exceeds its peers. |
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