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Netflix

Nasdaq:NFLX
Snowflake Description

High growth potential with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NFLX
Nasdaq
$134B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Netflix, Inc. provides Internet entertainment services. The last earnings update was 47 days ago. More info.


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NFLX Share Price and Events
7 Day Returns
-3.7%
NasdaqGS:NFLX
-1.2%
US Entertainment
-1.6%
US Market
1 Year Returns
10.5%
NasdaqGS:NFLX
25.6%
US Entertainment
13.9%
US Market
NFLX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Netflix (NFLX) -3.7% 3.9% 3.8% 10.5% 142.7% 537.2%
US Entertainment -1.2% 5.8% 4.7% 25.6% 59.5% 91.6%
US Market -1.6% 1% 4.9% 13.9% 36.1% 45.8%
1 Year Return vs Industry and Market
  • NFLX underperformed the Entertainment industry which returned 25.6% over the past year.
  • NFLX underperformed the Market in United States of America which returned 13.9% over the past year.
Price Volatility
NFLX
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Netflix undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Netflix to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Netflix.

NasdaqGS:NFLX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 38 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NFLX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.918 (1 + (1- 21%) (10.09%))
0.994
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.994 * 5.44%)
7.15%

Discounted Cash Flow Calculation for NasdaqGS:NFLX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Netflix is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:NFLX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.15%)
2020 -2,635.97 Analyst x22 -2,460.08
2021 -1,600.17 Analyst x16 -1,393.74
2022 334.67 Analyst x9 272.04
2023 3,634.83 Analyst x6 2,757.53
2024 6,228.82 Est @ 71.36% 4,410.12
2025 9,372.95 Est @ 50.48% 6,193.41
2026 12,733.71 Est @ 35.86% 7,852.68
2027 15,996.25 Est @ 25.62% 9,206.40
2028 18,948.65 Est @ 18.46% 10,177.92
2029 21,495.69 Est @ 13.44% 10,775.59
Present value of next 10 years cash flows $47,791.00
NasdaqGS:NFLX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $21,495.69 × (1 + 1.74%) ÷ (7.15% – 1.74%)
$404,266.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $404,266.87 ÷ (1 + 7.15%)10
$202,655.15
NasdaqGS:NFLX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $47,791.00 + $202,655.15
$250,446.15
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $250,446.15 / 438.25
$571.47
NasdaqGS:NFLX Discount to Share Price
Calculation Result
Value per share (USD) From above. $571.47
Current discount Discount to share price of $304.32
= -1 x ($304.32 - $571.47) / $571.47
46.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Netflix is available for.
Intrinsic value
47%
Share price is $304.32 vs Future cash flow value of $571.47
Current Discount Checks
For Netflix to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Netflix's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Netflix's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Netflix's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Netflix's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NFLX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $3.23
NasdaqGS:NFLX Share Price ** NasdaqGS (2019-12-04) in USD $304.32
United States of America Entertainment Industry PE Ratio Median Figure of 28 Publicly-Listed Entertainment Companies 24.75x
United States of America Market PE Ratio Median Figure of 2,925 Publicly-Listed Companies 18.13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Netflix.

NasdaqGS:NFLX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NFLX Share Price ÷ EPS (both in USD)

= 304.32 ÷ 3.23

94.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netflix is overvalued based on earnings compared to the US Entertainment industry average.
  • Netflix is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Netflix's expected growth come at a high price?
Raw Data
NasdaqGS:NFLX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 94.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 38 Analysts
36.1%per year
United States of America Entertainment Industry PEG Ratio Median Figure of 23 Publicly-Listed Entertainment Companies 2.23x
United States of America Market PEG Ratio Median Figure of 2,046 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NasdaqGS:NFLX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 94.11x ÷ 36.1%

2.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netflix is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Netflix's assets?
Raw Data
NasdaqGS:NFLX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $15.66
NasdaqGS:NFLX Share Price * NasdaqGS (2019-12-04) in USD $304.32
United States of America Entertainment Industry PB Ratio Median Figure of 62 Publicly-Listed Entertainment Companies 2.69x
United States of America Market PB Ratio Median Figure of 5,089 Publicly-Listed Companies 1.76x
NasdaqGS:NFLX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NFLX Share Price ÷ Book Value per Share (both in USD)

= 304.32 ÷ 15.66

19.44x

* Primary Listing of Netflix.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netflix is overvalued based on assets compared to the US Entertainment industry average.
X
Value checks
We assess Netflix's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Netflix has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Netflix expected to perform in the next 1 to 3 years based on estimates from 38 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
36.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Netflix expected to grow at an attractive rate?
  • Netflix's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Netflix's earnings growth is expected to exceed the United States of America market average.
  • Netflix's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NFLX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NFLX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 38 Analysts 36.1%
NasdaqGS:NFLX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 38 Analysts 16.6%
United States of America Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 12.8%
United States of America Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 11%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NFLX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 38 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NFLX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 38,626 4,036 6,974 7
2022-12-31 33,723 509 5,311 12
2021-12-31 29,199 -1,320 3,831 26
2020-12-31 24,547 -2,351 2,502 38
2019-12-31 20,134 -3,199 1,528 36
2019-12-04
NasdaqGS:NFLX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 18,876 -2,660 1,414
2019-06-30 17,630 -2,849 1,151
2019-03-31 16,614 -2,824 1,265
2018-12-31 15,794 -2,680 1,211
2018-09-30 14,893 -1,933 1,263
2018-06-30 13,879 -1,663 990
2018-03-31 12,757 -1,679 671
2017-12-31 11,693 -1,786 559
2017-09-30 10,884 -1,855 440
2017-06-30 10,190 -1,897 362
2017-03-31 9,510 -1,589 337
2016-12-31 8,831 -1,474 187

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Netflix's earnings are expected to grow significantly at over 20% yearly.
  • Netflix's revenue is expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NFLX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 38 Analyst Estimates (S&P Global) See Below

All data from Netflix Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NFLX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 15.50 18.37 12.40 6.00
2022-12-31 11.66 14.58 8.82 12.00
2021-12-31 8.38 10.25 6.07 26.00
2020-12-31 5.54 7.56 3.52 37.00
2019-12-31 3.37 3.88 3.33 35.00
2019-12-04
NasdaqGS:NFLX Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 3.23
2019-06-30 2.64
2019-03-31 2.90
2018-12-31 2.78
2018-09-30 2.91
2018-06-30 2.28
2018-03-31 1.55
2017-12-31 1.29
2017-09-30 1.02
2017-06-30 0.84
2017-03-31 0.79
2016-12-31 0.44

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Netflix is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Netflix's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Netflix has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Netflix performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Netflix's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Netflix has delivered over 20% year on year earnings growth in the past 5 years.
  • Netflix's 1-year earnings growth is less than its 5-year average (12% vs 47.7%)
  • Netflix's earnings growth has exceeded the US Entertainment industry average in the past year (12% vs 1.1%).
Earnings and Revenue History
Netflix's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Netflix Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NFLX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 18,875.85 1,413.88 3,339.19 1,467.56
2019-06-30 17,630.32 1,151.47 3,231.18 1,396.41
2019-03-31 16,614.48 1,265.17 3,146.90 1,312.27
2018-12-31 15,794.34 1,211.24 2,999.76 1,221.81
2018-09-30 14,893.26 1,262.83 2,479.36 1,064.31
2018-06-30 13,878.74 989.58 2,328.42 1,010.92
2018-03-31 12,756.93 670.83 2,073.15 978.91
2017-12-31 11,692.71 558.93 1,867.32 953.71
2017-09-30 10,884.50 440.16 1,925.84 1,004.62
2017-06-30 10,189.83 362.09 1,833.03 965.48
2017-03-31 9,509.57 337.24 1,699.20 905.70
2016-12-31 8,830.67 186.68 1,413.18 780.23
2016-09-30 8,176.46 163.11 1,458.10 807.77
2016-06-30 7,624.63 141.02 1,341.88 763.43
2016-03-31 7,164.12 126.60 1,280.49 711.19
2015-12-31 6,779.51 122.64 1,231.42 650.79
2015-09-30 6,440.91 162.83 1,177.68 595.81
2015-06-30 6,111.98 192.70 1,082.36 545.00
2015-03-31 5,807.70 237.38 970.10 505.12
2014-12-31 5,504.66 266.80 876.93 472.32
2014-09-30 5,195.16 231.85 771.59 444.57
2014-06-30 4,891.73 204.38 702.35 419.16
2014-03-31 4,620.69 162.83 680.03 397.10
2013-12-31 4,374.56 112.40 650.24 378.77
2013-09-30 4,144.57 71.88 623.70 362.78
2013-06-30 3,943.66 47.73 613.06 349.76
2013-03-31 3,763.45 24.43 602.64 338.18
2012-12-31 3,609.28 17.15 578.22 329.01

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Netflix has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Netflix used its assets more efficiently than the US Entertainment industry average last year based on Return on Assets.
  • Netflix has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Netflix's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Netflix has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Netflix's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Netflix's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Netflix's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Netflix's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Netflix's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Netflix Company Filings, last reported 2 months ago.

NasdaqGS:NFLX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 6,861.51 12,425.75 4,435.02
2019-06-30 6,105.55 12,594.14 5,004.25
2019-03-31 5,703.06 10,305.02 3,348.56
2018-12-31 5,238.77 10,360.06 3,794.48
2018-09-30 5,009.65 8,336.59 3,067.53
2018-06-30 4,496.60 8,342.07 3,906.36
2018-03-31 4,020.73 6,542.37 2,593.67
2017-12-31 3,581.96 6,499.43 2,822.80
2017-09-30 3,327.36 4,888.78 1,746.47
2017-06-30 3,112.50 4,836.50 2,164.90
2017-03-31 2,973.68 3,365.43 1,341.23
2016-12-31 2,679.80 3,364.31 1,733.78
2016-09-30 2,528.97 2,373.97 1,343.26
2016-06-30 2,415.83 2,373.09 1,834.23
2016-03-31 2,317.23 2,372.22 2,072.47
2015-12-31 2,223.43 2,371.36 2,310.72
2015-09-30 2,167.32 2,400.00 2,609.64
2015-06-30 2,032.08 2,400.00 2,796.76
2015-03-31 1,909.21 2,400.00 2,957.71
2014-12-31 1,857.71 885.85 1,608.50
2014-09-30 1,724.87 900.00 1,666.82
2014-06-30 1,609.71 900.00 1,714.37
2014-03-31 1,478.36 900.00 1,668.24
2013-12-31 1,333.56 500.00 1,200.41
2013-09-30 1,204.37 500.00 1,134.99
2013-06-30 1,105.62 500.00 1,080.11
2013-03-31 812.92 700.00 1,025.87
2012-12-31 744.67 400.00 748.08
  • Netflix's level of debt (181.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (49.2% vs 181.1% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).
X
Financial health checks
We assess Netflix's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Netflix has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Netflix's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Netflix dividends. Estimated to be 0% next year.
If you bought $2,000 of Netflix shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Netflix's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Netflix's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NFLX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 38 Analyst Estimates (S&P Global) See Below
United States of America Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1957 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NFLX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 7.00
2020-12-31 0.00 8.00
2019-12-31 0.00 8.00
2019-12-04

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Netflix has not reported any payouts.
  • Unable to verify if Netflix's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Netflix's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Netflix has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Netflix's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Netflix's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Netflix afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Netflix has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Netflix's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wilmot Hastings
COMPENSATION $36,080,417
AGE 59
TENURE AS CEO 21.3 years
CEO Bio

Mr. Wilmot Reed Hastings, Jr., is President of Netflix, Inc. and has been its Chairman and Chief Executive Officer from 1997 and September 1998 respectively. Mr. Hastings co-founded Netflix in 1997. In 1991, Mr. Hastings founded Pure Software. He is an active educational philanthropist and served on the California State Board of Education from 2000 to 2004. He is on the board of several educational organizations including CCSA, DreamBox Learning, KIPP, and Pahara. He served as Director of Facebook since June 2011 until May 30, 2019. He was on the Board of Microsoft from 2007 to 2012. He received a BA from Bowdoin College in 1983, and an MSCS in Artificial Intelligence from Stanford University in 1988. Between Bowdoin and Stanford, he served in the Peace Corps as a high school math teacher in Swaziland.

CEO Compensation
  • Wilmot's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Wilmot's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Netflix management team in years:

4.9
Average Tenure
50
Average Age
  • The tenure for the Netflix management team is about average.
Management Team

Wilmot Hastings

TITLE
Co-Founder
COMPENSATION
$36M
AGE
59
TENURE
21.3 yrs

Ted Sarandos

TITLE
Chief Content Officer
COMPENSATION
$30M
AGE
54
TENURE
19.8 yrs

Greg Peters

TITLE
Chief Product Officer
COMPENSATION
$15M
AGE
48
TENURE
6.4 yrs

Spencer Neumann

TITLE
Chief Financial Officer
AGE
49
TENURE
0.9 yrs

Spencer Wang

TITLE
Vice President of Finance & Investor Relations
TENURE
4.9 yrs

David Hyman

TITLE
General Counsel & Secretary
COMPENSATION
$5M
AGE
53
TENURE
17.9 yrs

Rachel Whetstone

TITLE
Chief Communications Officer
AGE
51
TENURE
1.3 yrs

Bill Holmes

TITLE
Chief Business Development Officer
AGE
49

Jessica Neal

TITLE
Chief Talent Officer
AGE
42
TENURE
2.2 yrs

Christie Fleischer

TITLE
Global Head of Consumer Products
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Netflix board of directors in years:

7.9
Average Tenure
59
Average Age
  • The tenure for the Netflix board of directors is about average.
Board of Directors

Wilmot Hastings

TITLE
Co-Founder
COMPENSATION
$36M
AGE
59
TENURE
22.9 yrs

Jay Hoag

TITLE
Lead Independent Director
COMPENSATION
$378K
AGE
61

Tim Haley

TITLE
Independent Director
COMPENSATION
$378K
AGE
63
TENURE
21.5 yrs

Ann Mather

TITLE
Independent Director
COMPENSATION
$378K
AGE
59
TENURE
9.3 yrs

Leslie Kilgore

TITLE
Independent Director
COMPENSATION
$378K
AGE
54
TENURE
7.9 yrs

Rich Barton

TITLE
Independent Director
COMPENSATION
$378K
AGE
51
TENURE
17.6 yrs

Anne Sweeney

TITLE
Independent Director
COMPENSATION
$378K
AGE
61
TENURE
4.8 yrs

Brad Smith

TITLE
Independent Director
COMPENSATION
$378K
AGE
60
TENURE
4.8 yrs

Rodolphe Belmer

TITLE
Independent Director
COMPENSATION
$347K
AGE
50
TENURE
1.9 yrs

Susan Rice

TITLE
Independent Director
COMPENSATION
$286K
AGE
54
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Netflix's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Netflix has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Netflix (NASDAQ:NFLX) Takes On Some Risk With Its Use Of Debt

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … Our View Netflix's conversion of EBIT to free cash flow and net debt to EBITDA definitely weigh on it, in our esteem.

Simply Wall St -

Estimating The Intrinsic Value Of Netflix, Inc. (NASDAQ:NFLX)

(NASDAQ:NFLX) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $-2.4b $-456.5m $2.1b $4.3b $6.3b $8.4b $10.4b $12.3b $14.0b $15.4b Growth Rate Estimate Source Analyst x20 Analyst x4 Analyst x7 Analyst x6 Est @ 47.21% Est @ 33.87% Est @ 24.53% Est @ 17.99% Est @ 13.41% Est @ 10.21% Present Value ($, Millions) Discounted @ 8.54% $-2.2k $-387.4 $1.7k $3.1k $4.2k $5.1k $5.9k $6.4k $6.7k $6.8k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $37.1b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$15b × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$272b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$272b ÷ ( 1 + 8.5%)10 = $119.81b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $156.93b.

Simply Wall St -

Here's Why I Think Netflix (NASDAQ:NFLX) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Netflix (NASDAQ:NFLX). … See our latest analysis for Netflix Netflix's Improving Profits Over the last three years, Netflix has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base.

Simply Wall St -

If You Had Bought Netflix (NASDAQ:NFLX) Shares Five Years Ago You'd Have Made 453%

See our latest analysis for Netflix In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Netflix managed to grow its earnings per share at 40% a year.

Simply Wall St -

Can Netflix, Inc.'s (NASDAQ:NFLX) ROE Continue To Surpass The Industry Average?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Netflix: 22% = US$1.3b ÷ US$5.7b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Netflix's Debt And Its 22% Return On Equity It's worth noting the significant use of debt by Netflix, leading to its debt to equity ratio of 1.81. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Should You Worry About Netflix, Inc.'s (NASDAQ:NFLX) CEO Salary Level?

This analysis aims first to contrast CEO compensation with other large companies. … View our latest analysis for Netflix How Does Wilmot Hastings's Compensation Compare With Similar Sized Companies? … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m.

Simply Wall St -

Is It Too Late To Consider Buying Netflix, Inc. (NASDAQ:NFLX)?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … Great news for investors – Netflix is still trading at a fairly cheap price. … My valuation model shows that the intrinsic value for the stock is $446.61, but it is currently trading at US$340 on the share market, meaning that there is still an opportunity to buy now.

Simply Wall St -

Calculating The Fair Value Of Netflix, Inc. (NASDAQ:NFLX)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $-3.24k $-2.25k $-872.48 $1.77k $4.06k $6.33k $8.87k $11.42k $13.82k $15.97k Growth Rate Estimate Source Analyst x23 Analyst x21 Analyst x8 Analyst x7 Analyst x7 Est @ 56% Est @ 40.02% Est @ 28.83% Est @ 21% Est @ 15.52% Present Value ($, Millions) Discounted @ 8.7% $-2.98k $-1.91k $-679.30 $1.26k $2.67k $3.84k $4.94k $5.86k $6.52k $6.93k Present Value of 10-year Cash Flow (PVCF)= $26.47b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NasdaqGS:NFLX Intrinsic value, May 22nd 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Here's Why I Think Netflix (NASDAQ:NFLX) Is An Interesting Stock

How Fast Is Netflix Growing Its Earnings Per Share. … Over the last three years, Netflix has grown earnings per share (EPS) like bamboo after rain; fast, and from a low base. … In the chart below, you can see how the company has grown earnings, and revenue, over time

Simply Wall St -

Is Netflix, Inc.'s (NASDAQ:NFLX) ROE Of 23% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Netflix has a return on equity of 23% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

Netflix, Inc. provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 139 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

Details
Name: Netflix, Inc.
NFLX
Exchange: NasdaqGS
Founded: 1997
$134,175,014,640
438,251,289
Website: http://www.netflix.com
Address: Netflix, Inc.
100 Winchester Circle,
Los Gatos,
California, 95032,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NFLX Common Stock Nasdaq Global Select US USD 23. May 2002
DB NFC Common Stock Deutsche Boerse AG DE EUR 23. May 2002
XTRA NFC Common Stock XETRA Trading Platform DE EUR 23. May 2002
LSE 0QYI Common Stock London Stock Exchange GB USD 23. May 2002
SWX NFLX Common Stock SIX Swiss Exchange CH CHF 23. May 2002
BIT NFLX Common Stock Borsa Italiana IT EUR 23. May 2002
WBAG NFLX Common Stock Wiener Boerse AG AT EUR 23. May 2002
BMV NFLX * Common Stock Bolsa Mexicana de Valores MX MXN 23. May 2002
BVL NFLX Common Stock Bolsa de Valores de Lima PE USD 23. May 2002
BOVESPA NFLX34 BDR EACH REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 23. Aug 2012
BASE NFLX CEDEAR EACH 16 REP 1 COM USD0.001 Buenos Aires Stock Exchange AR ARS 11. Apr 2019
Number of employees
Current staff
Staff numbers
7,100
Netflix employees.
Industry
Movies and Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/04 23:43
End of day share price update: 2019/12/04 00:00
Last estimates confirmation: 2019/12/04
Last earnings filing: 2019/10/18
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.