Is Netflix Stock a Good Investment?
Netflix Investment Advice | NFLX |
- Examine Netflix's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Netflix's leadership team and their track record. Good management can help Netflix navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Entertainment space and any emerging trends that could impact Netflix's business and its evolving consumer preferences.
- Compare Netflix's performance and market position to its competitors. Analyze how Netflix is positioned in terms of product offerings, innovation, and market share.
- Check if Netflix pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Netflix's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Netflix stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Netflix is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Netflix Stock
Researching Netflix's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 86.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.8. Netflix recorded earning per share (EPS) of 17.68. The entity had not issued any dividends in recent years. The firm had 7:1 split on the 15th of July 2015.
To determine if Netflix is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Netflix's research are outlined below:
| Over 86.0% of the company shares are owned by institutional investors |
Netflix uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Netflix. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Netflix's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 16th of April 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Netflix's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 377.81 B.Netflix's profitablity analysis
The company has Profit Margin (PM) of 0.21 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.3 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.3.Determining Netflix's profitability involves analyzing its financial statements and using various financial metrics to determine if Netflix is a good buy. For example, gross profit margin measures Netflix's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Netflix's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Netflix's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Netflix. Check Netflix's Beneish M Score to see the likelihood of Netflix's management manipulating its earnings.
Basic technical analysis of Netflix Stock
As of the 21st of November, Netflix secures the Mean Deviation of 1.3, downside deviation of 1.51, and Risk Adjusted Performance of 0.1649. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Netflix, as well as the relationship between them.Netflix's Outstanding Corporate Bonds
Netflix issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Netflix uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Netflix bonds can be classified according to their maturity, which is the date when Netflix has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| NETAPP INC Corp BondUS64110DAL82 | View | |
| US64110DAJ37 Corp BondUS64110DAJ37 | View | |
| US64110DAK00 Corp BondUS64110DAK00 | View | |
| NetFlix 4875 percent Corp BondUS64110LAS51 | View | |
| NetFlix 5875 percent Corp BondUS64110LAT35 | View | |
| NetFlix 5375 percent Corp BondUS64110LAU08 | View | |
| NetFlix 4375 percent Corp BondUS64110LAN64 | View | |
| NetFlix 4875 percent Corp BondUS64110LAV80 | View |
Understand Netflix's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Netflix's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1649 | |||
| Market Risk Adjusted Performance | 6.66 | |||
| Mean Deviation | 1.3 | |||
| Semi Deviation | 1.14 | |||
| Downside Deviation | 1.51 | |||
| Coefficient Of Variation | 474.74 | |||
| Standard Deviation | 1.96 | |||
| Variance | 3.85 | |||
| Information Ratio | 0.162 | |||
| Jensen Alpha | 0.3983 | |||
| Total Risk Alpha | 0.1809 | |||
| Sortino Ratio | 0.2099 | |||
| Treynor Ratio | 6.65 | |||
| Maximum Drawdown | 13.04 | |||
| Value At Risk | (2.33) | |||
| Potential Upside | 2.8 | |||
| Downside Variance | 2.29 | |||
| Semi Variance | 1.31 | |||
| Expected Short fall | (1.50) | |||
| Skewness | 2.34 | |||
| Kurtosis | 13.06 |
| Risk Adjusted Performance | 0.1649 | |||
| Market Risk Adjusted Performance | 6.66 | |||
| Mean Deviation | 1.3 | |||
| Semi Deviation | 1.14 | |||
| Downside Deviation | 1.51 | |||
| Coefficient Of Variation | 474.74 | |||
| Standard Deviation | 1.96 | |||
| Variance | 3.85 | |||
| Information Ratio | 0.162 | |||
| Jensen Alpha | 0.3983 | |||
| Total Risk Alpha | 0.1809 | |||
| Sortino Ratio | 0.2099 | |||
| Treynor Ratio | 6.65 | |||
| Maximum Drawdown | 13.04 | |||
| Value At Risk | (2.33) | |||
| Potential Upside | 2.8 | |||
| Downside Variance | 2.29 | |||
| Semi Variance | 1.31 | |||
| Expected Short fall | (1.50) | |||
| Skewness | 2.34 | |||
| Kurtosis | 13.06 |
Consider Netflix's intraday indicators
Netflix intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Netflix stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Netflix time-series forecasting models is one of many Netflix's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Netflix's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Netflix Stock media impact
Far too much social signal, news, headlines, and media speculation about Netflix that are available to investors today. That information is available publicly through Netflix media outlets and privately through word of mouth or via Netflix internal channels. However, regardless of the origin, that massive amount of Netflix data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Netflix news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Netflix relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Netflix's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Netflix alpha.
Netflix Corporate Management
| Spencer Neumann | Chief Officer | Profile | |
| Theodore Sarandos | Chief Content Officer | Profile | |
| Wilmot Hastings | Chairman, CoFounder | Profile | |
| Rachel Whetstone | Chief Communications Officer | Profile | |
| David Hyman | General Counsel and Secretary | Profile | |
| Jeffrey Karbowski | Chief Officer | Profile | |
| Elizabeth Stone | Chief Officer | Profile |
Additional Tools for Netflix Stock Analysis
When running Netflix's price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.