NFLX · Verdict

A summary of rules, not a profit forecast — don’t buy just because of a green verdict.

• ▲ P/E 17.9 — cheap for this stock (over 10 y: from 29.6 to 287.9)
• ▲ P/E 17.9 vs peer median 22.9 — cheaper than peers
• ▲ P/S 5.2 — cheap for this stock (over 10 y: from 4.2 to 10.0)
• ▼ P/S 5.2 vs peer median 2.0 — more expensive than peers
• ▼ EV/EBITDA 16.6 vs peer median 12.6 — more expensive than peers
• ▲ FCF yield 3.7% — cheap for this stock (over 10 y: from -2.9% to 3.2%)
• ▼ FCF yield 3.7% vs peer median 12.5% — more expensive than peers
• ▼ Cyclical company at peak earnings: P/E 17.9 is understated; on average earnings over 10 y it is 66.8

• ▲ Piotroski 7/9 — strong financial health
• ▲ ROE 53% — high return on equity
• ▲ Net margin rose: 14.2% → 24.3%
• ▲ Debt / equity 0.54 — moderate debt

• ▲ Revenue grows 12.6% per year (5 y)
• ▲ Earnings per share grows 33.0% per year (5 y)

• ▼ Over 6 mo weaker than its sector (XLC) by 19%
• ▼ Price below SMA200 — long-term downtrend
• ▼ SMA50 below SMA200 — trend down
• ▼ Over a year -43% vs S&P 500 +11% — weaker than the market

• ▼ Volatility 36% per year — much higher than the market (13%)
• ▼ Max drawdown in the period -76% — deep
• ▼ Beta 1.61 — moves more than the market

• ▲ Consensus of 43 analysts — buy
• ▲ Mean analyst target +37% from the current price
• ▲ Insiders buying over 6 mo

• ▲ S&P 500 above SMA200 — the market is in an uptrend
• ▼ Sector (XLC) below SMA200 — in a downtrend
• ▼ Sector (XLC) over 3 mo is weaker than the market by 8%