Netflix Inc.Find Ratings Reports
NETFLIX INC's gross profit margin for the second quarter of its fiscal year 2018 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing net income growth, but not when comparing revenue growth. NETFLIX INC has weak liquidity. Currently, the Quick Ratio is 0.64 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.
At the same time, stockholders' equity ("net worth") has greatly increased by 44.46% 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||Q2 FY18||Q2 FY17|
|Net Sales ($mil)||3907.27||2785.46|
|Net Income ($mil)||384.35||65.6|
|Balance Sheet||Q2 FY18||Q2 FY17|
|Cash & Equiv. ($mil)||3906.36||2164.9|
|Total Assets ($mil)||22663.54||16517.22|
|Total Debt ($mil)||8342.07||4836.5|
|Profitability||Q2 FY18||Q2 FY17|
|Gross Profit Margin||41.9||32.37|
|Return on Assets||4.36||2.19|
|Return on Equity||22.0||11.63|
|Debt||Q2 FY18||Q2 FY17|
|Share Data||Q2 FY18||Q2 FY17|
|Shares outstanding (mil)||434.66||431.75|
|Div / share||0.0||0.0|
|Book value / share||10.35||7.21|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||9804664.0||1.2290258E7|
HOLD. The current P/E ratio indicates a significant discount compared to an average of 198.01 for the Internet & Catalog Retail industry and a significant premium compared to the S&P 500 average of 24.24. For additional comparison, its price-to-book ratio of 38.71 indicates a significant premium versus the S&P 500 average of 3.28 and a significant premium versus the industry average of 25.41. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|NFLX 182.87||Peers 198.01||NFLX NM||Peers 43.39|
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 85.57||Peers 123.35||NFLX 1.43||Peers 1.83|
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 premium to its peers.
Discount. 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 discount to its peers.
|NFLX 38.71||Peers 25.41||NFLX 167.07||Peers 89.38|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
NFLX is expected to have an earnings growth rate that significantly exceeds its peers.
|NFLX 12.54||Peers 5.56||NFLX 36.20||Peers 34.68|
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.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
NFLX is keeping pace with its peers on the basis of sales growth.