Netflix, Inc. (NFLX)

Communication Services · Entertainment · NASDAQ

$67.85

-2.49%

Investru Score

58.3 / 100

Good

Why is NFLX moving?

NFLX is down 2.49% today, in line with its broader downtrend.

Recent coverage: Netflix co-CEO says streaming giant "isn't growing as fast as I want us to"

Business overview

The company operates in the Communication Services sector within the Entertainment industry.
Market capitalization stands at $286,473,701,877.50.
Price performance shows a daily change percentage of -2.49%.

These core identifiers and scale indicators highlight a major global entertainment provider facing short-term price pressure.

Bull case

If revenue growth remains resilient while margins continue their positive trend, the reasonable valuation multiples could attract renewed buyer interest. Strong capital returns like an ROE of 41.3% provide a solid foundation for future equity value creation once momentum turns positive.

Bear case

If the sharp drop in year-over-year EPS deepens and the ongoing technical downtrend fails to reverse, valuation multiples could compress further. A low current ratio combined with weak momentum could expose the stock to steeper downside risks.

NFLX’s Investru Score changed -5.2 points recently. Want to know exactly what changed and why? That’s a Pro feature →

Score breakdown

Financial Quality: 74
Growth: 42
Profitability: 69
Balance Sheet: 64
Valuation: 72
Momentum: 9

Score history

-5.2 over the last 32 days, driven mainly by momentum (-61).

Financial quality

Return on invested capital (ROIC) is registered at 27.4%.
Return on equity (ROE) is measured at 41.3%.
Free cash flow margin is recorded at 20.9%.
Earnings quality ratio sits at 0.92.

These strong capital efficiency and cash generation metrics demonstrate effective use of resources to produce high-quality earnings.

ROIC: 27.4%
ROE: 41.3%
FCF Margin: 20.9%
Free Cash Flow (TTM): $9.5B
Earnings Quality (OCF ÷ Net Income): 0.9x

Valuation

Price-to-earnings (P/E) ratio is 19.95.
Forward price-to-earnings ratio is 19.21.
Enterprise value to EBITDA is 18.72.
Price-to-sales ratio is 6.04.
Free cash flow yield is 4.0%.

These valuation metrics suggest the stock is priced reasonably relative to its cash flows and earnings history, despite recent earnings headwinds.

P/E (TTM): 19.9x
Forward P/E: 19.2x
PEG (P/E ÷ EPS Growth): Data unavailable
Company Median PEG: Data unavailable
Price / Sales: 6.0x
EV / EBITDA: 18.7x
FCF Yield: 4.0%

Key risks

Persistent negative earnings growth year-over-year could continue to pressure market sentiment and valuation multiples.(Probability: High · Impact: High)
The existing technical downtrend and low RSI of 34.73 might lead to prolonged downward price momentum.(Probability: High · Impact: Medium)
A current ratio of 1.19 leaves a relatively slim liquidity buffer to absorb unexpected operational shocks.(Probability: Medium · Impact: Medium)

Latest earnings

Q2 FY26 EPS: $0.80
Estimate: $0.80
Surprise: -0.5%

Earnings per share growth year-over-year is down by 87.2%.
Earnings quality is maintained at 0.92.

These figures indicate that while reported earnings are backed by real cash generation, the overall profit level has experienced a steep annual decline.

SEC filings

10-Q · Q2 FY26 · period ended 2026-06-30Filed 2026-07-17
10-Q · Q1 FY26 · period ended 2026-03-31Filed 2026-04-17
10-K · FY25 · period ended 2025-12-31Filed 2026-01-23
10-Q · Q3 FY25 · period ended 2025-09-30Filed 2025-10-22
10-Q · Q2 FY25 · period ended 2025-06-30Filed 2025-07-18
10-K · FY24 · period ended 2024-12-31Filed 2025-01-27
10-K · FY23 · period ended 2023-12-31Filed 2024-01-26
10-K · FY22 · period ended 2022-12-31Filed 2023-01-26
10-K · FY21 · period ended 2021-12-31Filed 2022-01-27

Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.

Market cap $286.5B · 52-week range $65.08–$124.86 · market data as of Oct 1, 2026, 4:00 PM ET · latest SEC filing: 2026-07-17

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