One Reason Why Netflix (NFLX) Stock is Gaining Today - TheStreet

NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report  shares are advancing 0.94% to $125.01 on Monday as the video streaming giant is working to bring back a popular sci-fi television show from the 1960s called "Lost in Space," Fortune reports.

The company bought the rights to the show recently winning out multiple bidders however, no details of the deal were announced.

The new series, which will be about a family of scientists who are on a mission to explore distant planets will closely follow the original plot, Fortune said. The characters will be facing numerous challenges in an alien universe.

Additionally, British director Neil Marshall is expected to direct the pilot.

Los Gatos, CA-based Netflix is an Internet television network that engages in the Internet delivery of TV shows and movies directly on TVs, computers, and mobile devices in the U.S. and internationally.

Separately, TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, NFLX's share price has jumped by 131.77%, exceeding the performance of the broader market during that same time frame. Although NFLX had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • NFLX's revenue growth trails the industry average of 38.3%. Since the same quarter one year prior, revenues rose by 23.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for NETFLIX INC is currently very high, coming in at 84.59%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.69% trails the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Internet & Catalog Retail industry and the overall market, NETFLIX INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$195.97 million or 423.43% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: NFLX