Netflix Inc (NFLX) Stock Analysis
Verdict: WATCH (do not buy)
Strong FCF generation and P/E compression are offset by slowing revenue growth and four negative earnings surprises.
Investment score: 50/100
Analysis as of
Is Netflix Inc stock worth reviewing? AI model thesis
The model sees Netflix (NFLX) at a sector-level valuation (P/E 21.8x vs. DIS 22.2x) after a 43.7% pullback from its 52-week high. However, four consecutive quarters of missed earnings estimates and lack of insider buying warrant caution.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 82/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 55/100 (weight 10%)
- Risk-adjusted Return: 50/100 (weight 15%)
Netflix Inc opportunities and risks
What speaks for NFLX
- Scaling of the advertising bundle model and live events
What speaks against NFLX
- Weaker engagement and pressure on pricing power
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| NFLX | 21.8x | 6.1x | 8.5x | 49.1% | 28.2% | 3.8% |
| DIS | 22.2x | 1.9x | 9.8x | 37.6% | 8.7% | 4.4% |
| LYV | n/a | 1.5x | 24.8x | 44.8% | 0.5% | 3.5% |
| TKO | 58.9x | 2.5x | 10.8x | 54.1% | 4.3% | 12.5% |
| FWONA | 47.1x | 5.0x | 18.0x | 32.8% | 10.6% | 3.6% |
| ROKU | 63.7x | 4.4x | 32.6x | 45.5% | 6.8% | 3.6% |
| Peer median | 47.1x | 2.5x | 18.0x | 44.8% | 6.8% | 3.6% |
Frequently asked questions about Netflix Inc (NFLX)
Is NFLX stock a good investment?
The cached TradeMates AI model rates Netflix Inc as WATCH (do not buy) with an investment score of 50/100. The model sees Netflix (NFLX) at a sector-level valuation (P/E 21.8x vs. DIS 22.2x) after a 43.7% pullback from its 52-week high. However, four consecutive quarters of missed earnings estimates and lack of insider buying warrant caution. This is algorithmic model output, not personal investment advice.
Is NFLX stock a buy?
The TradeMates model verdict for NFLX is WATCH (do not buy) with an investment score of 50/100. Treat this as a model signal to review, not a personal buy recommendation.