NETFLIX INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NETFLIX INC has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 19.68% 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q4 FY15||Q4 FY14|
|Net Sales ($mil)||1823.33||1484.73|
|Net Income ($mil)||43.18||83.37|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||2310.72||1608.5|
|Total Assets ($mil)||10202.87||7056.65|
|Total Debt ($mil)||2400.36||929.6|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||86.11||83.2|
|Return on Assets||1.2||3.78|
|Return on Equity||5.51||14.36|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||427.94||422.91|
|Div / share||0.0||0.0|
|Book value / share||5.2||4.39|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.8988776E7||2.1327726E7|
HOLD. NETFLIX INC's P/E ratio indicates a significant premium compared to an average of 294.14 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 17.27 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 13.84. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, NETFLIX INC proves to trade at a premium to investment alternatives within the industry.
|NFLX 315.55||Peers 294.14||NFLX NM||Peers 19.58|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
NFLX is trading at a valuation on par with its peers.
Neutral. 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's P/CF is negative making the measure meaningless.
|NFLX 81.55||Peers 108.40||NFLX NM||Peers 1.31|
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.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|NFLX 17.27||Peers 13.84||NFLX -53.94||Peers 191.96|
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 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.
|NFLX 5.66||Peers 3.23||NFLX 23.15||Peers 27.27|
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 industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
NFLX trails its peers on the basis of sales growth
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.