Netflix, Inc. [NASDAQ:NFLX]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Netflix, Inc. [NFLX] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give NFLX an Outperform rating. Its stock price has been found in the range of 231.23 to 423.21. This is compared to its latest closing price of $366.96.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Netflix, Inc. [NFLX] is sitting at 2.21. This is compared to 1 month ago, when its average rating was 2.16.
For the quarter ending in Dec-18 Netflix, Inc. [NFLX] generated $4.19 billion in sales. That’s 0.48% lower than the average estimate of $4.21 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Tue 16 Apr (In 14 Days).
Fundamental Analysis of Netflix, Inc. [NFLX]
Now let’s turn to look at profitability: with a current Operating Margin for Netflix, Inc. [NFLX] sitting at +10.16 and its Gross Margin at +36.89, this company’s Net Margin is now 7.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 12.47, and its Return on Invested Capital has reached 10.00%. Its Return on Equity is 27.46, and its Return on Assets is 5.38. These metrics all suggest that Netflix, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Netflix, Inc. [NFLX] has generated a Total Debt to Total Equity ratio of 198.29. Similarly, its Total Debt to Total Capital is 66.48, while its Total Debt to Total Assets stands at 39.99. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 198.29, and its Long-Term Debt to Total Capital is 66.48. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 17.52 and its Total Debt to EBITDA Value is 1.12. The Enterprise Value to Sales for this firm is now 10.27, and its Total Debt to Enterprise Value stands at 0.08.
Shifting the focus to workforce efficiency, Netflix, Inc. [NFLX] earns $2,224,555 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.70. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.49 and its Current Ratio is 1.49. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Netflix, Inc. [NFLX] has 434.21M shares outstanding, amounting to a total market cap of $159.67B. Its stock price has been found in the range of 231.23 to 423.21. At its current price, it has moved by -13.11% from its 52-week high, and it has moved 59.03% from its 52-week low.
This stock’s Beta value is currently 1.38, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.50. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Netflix, Inc. [NFLX] a Reliable Buy?
Netflix, Inc. [NFLX] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.