NFLX Netflix Inc

Netflix is the world's leading subscription video streaming service, producing and distributing original and licensed content to hundreds of millions of subscribers globally. Sector: Communication Services.

Netflix Inc (NFLX) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 28.86%, WACC is 13.62%, and the economic spread is 15.24%. On balance, the company generate meaningful returns above their cost of capital, a hallmark of competitively advantaged businesses. Supporting metrics show ROE at 43.12% and ROA at 17.82%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

Valuation currently screens at trailing P/E of 39.02, forward P/E of 31.36, PEG of 2.07. Trailing and forward multiples are somewhat apart, indicating the market is pricing measured earnings growth without aggressive expansion assumptions. Growth-adjusted valuation is in a reasonable range, with the multiple broadly in line with expected earnings expansion. At 1.19, the aggregate current ratio reflects the company with limited near-term liquidity buffer. The valuation profile here is neither obviously cheap nor dramatically expensive — a setup where the return case is built more on earnings delivery than on re-rating potential.

On the margin front: gross margin sits at 48.49%, operating margin at 29.50%, and free cash flow margin at 20.94%. At this level, the company reflects reasonable cost discipline and adequate pricing leverage at the production layer. Operating margins sit in a healthy range — not exceptional, but indicating reasonable operational efficiency. Strong free cash flow margins point to businesses with meaningful financial flexibility and limited dependence on external capital. The combined margin read is functional rather than exceptional, which can increase sensitivity to cost pressure or slower demand.

The two main inputs to the near-term picture — TTM revenue growth of 17.61% reflecting consistent if unspectacular revenue expansion. Consensus EPS estimates point to 24.4% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. Analyst price targets suggest street expectations imply a constructive but measured return profile on a 12-month view. Revenue momentum establishes the baseline; analyst price targets reveal how much the market is already paying for future execution on top of that baseline. Delivered returns will ultimately be shaped by the gap — or lack thereof — between operating execution and the expectations embedded in current prices. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Across the metrics reviewed, the evidence is consistently constructive — quality, growth, and valuation are pulling in the same direction.

This summary is based on publicly available quantitative data and is not intended as investment advice. Carefully consider your personal financial circumstances before making any decisions.