Netflix, Inc. [NASDAQ: NFLX] shares went higher by 0.37% from its previous closing of $380.01, now trading at the price of $381.40, also adding 1.39 points. Is NFLX stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 4.47 million contracts. Compared to the average trading volume of NFLX shares, the company saw a far better performance. Moreover, the stock has a 431.60M float and a +3.94% run over in the last seven days. NFLX share price has been hovering between $385.99 and $252.28 lately, and is definitely worthy of attention.
Netflix, Inc. [NASDAQ:NFLX]: Analyst Rating and Earnings
Its stock price has been found in the range of 252.28 to 385.99. This is compared to its latest closing price of $380.01.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 21 Apr (In 68 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 +12.92 and its Gross Margin at +38.28, this company’s Net Margin is now 9.30%. 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 13.16, and its Return on Invested Capital has reached 10.20%. Its Return on Equity is 29.12, and its Return on Assets is 6.23. 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 194.66. Similarly, its Total Debt to Total Capital is 66.06, while its Total Debt to Total Assets stands at 48.19. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 4.16, and its Long-Term Debt to Total Capital is 194.66.
What about valuation? This company’s Enterprise Value to EBITDA is 13.65 and its Total Debt to EBITDA Value is 1.24. The Enterprise Value to Sales for this firm is now 8.08, and its Total Debt to Enterprise Value stands at 0.09.
Similarly, this company’s Total Asset Turnover is 0.67. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.90 and its Current Ratio is 0.90. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Netflix, Inc. [NFLX] has 439.02M shares outstanding, amounting to a total market cap of $167.44B. Its stock price has been found in the range of 252.28 to 385.99. At its current price, it has moved down by -1.19% from its 52-week high, and it has moved up 51.18% from its 52-week low.
This stock’s Beta value is currently 1.47, which indicates that it is 2.31% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 73.22. This RSI suggests that Netflix, Inc. is currently Overbought.
Conclusion: Is Netflix, Inc. [NFLX] a Reliable Buy?
Shares of Netflix, Inc. [NFLX], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.