Netflix, Inc. (NFLX) on Decifer

Decifer ranks NFLX number 54 of 277 tracked names on durable business quality.

Why it ranks here

• It earns strong returns on the money it puts to work, around 25% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is growing about 16% a year, profits grew 27% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Returns near 25% with revenue growing about 16% and profits up 27% make it a top quality business, but momentum of 1 out of 35 and no worldview catalyst mean the growth case rests on the business alone.

The current read

The evidence on NFLX lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• Consumer & Retail: Netflix, Inc. sits in the travel & entertainment layer of the Consumer & Retail story.

Read the full NFLX research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.