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Netflix Inc

NFLX
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71.840USD
-0.980-1.35%
Close 06/24, 16:00ETQuotes delayed by 15 min
302.50BMarket Cap
22.74P/E TTM

TradingKey Stock Score of Netflix Inc

Currency: USD Updated: 2026-06-24

Key Insights

Netflix Inc's fundamentals are relatively very healthy, and its growth potential is high.Its valuation is considered fairly valued, ranking 84 out of 488 in the Software & IT Services industry.Institutional ownership is very high.Over the past month, multiple analysts have rated it as Buy, with the highest price target at 115.37.In the medium term, the stock price is expected to trend down.Despite a very weak stock market performance over the past month, the company shows strong fundamentals.The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.

Netflix Inc's Score

Industry at a Glance

Industry Ranking
84 / 488
Overall Ranking
168 / 4571
Industry
Software & IT Services

Support & Resistance

Relevant data have not been disclosed by the company yet.

Score Analysis

Current score
Previous score

Media Coverage

Last 24 hours
Coverage Level

49°C

Very Low
Very High
Positive

Netflix Inc Highlights

StrengthsRisks

Netflix, Inc. is an American media enterprise founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California, currently headquartered in Los Gatos, California, with production offices and stages located at Hollywood studios in Los Angeles and Albuquerque Studios. The company owns and operates a subscription video on-demand service that features original content, acquired programming, and third-party material licensed from other producers and distributors. Notably, Netflix is the first streaming media company to join the Motion Picture Association.

Initially, Netflix offered both DVD sales and rentals by mail; however, sales were discontinued within the first year to concentrate on the rental business. In 2007, the company launched streaming media and video on demand, expanding its reach to Canada in 2010, followed by Latin America and the Caribbean. In 2011, Netflix began acquiring and producing original content, starting with the crime drama Lilyhammer.

As of now, the company holds the 117th position on the Fortune 500 and ranks 219th on the Forbes Global 2000. It is the second-largest entertainment/media company by market capitalization as of February 2022. In 2021, Netflix was recognized as the eighth-most trusted brand globally by Morning Consult. Throughout the 2010s, it emerged as the top-performing stock in the S&P 500 index, with a total return of 3,693%.

The company has co-CEOs, Greg Peters and Ted Sarandos, who operate from Los Gatos and Los Angeles, respectively. Additionally, it maintains international offices across Asia, Europe, and Latin America, including locations in Canada, France, Brazil, the Netherlands, India, Italy, Japan, Poland, South Korea, and the United Kingdom. Netflix also has production hubs in Los Angeles, Albuquerque, London, Madrid, Vancouver, and Toronto.

High Growth
The company's revenue has grown steadily over the past 3 years, averaging 33.98% year-on-year.
High Profit Growth
The company's net income leads the industry, with the latest annual income totaling USD 45.18B.
Undervalued
The company’s latest PE is 22.74, at a low 3-year percentile range.
Institutional Selling
The latest institutional holdings are 3.54B shares, decreasing 2.87% quarter-over-quarter.
Held by Tom Russo
Star Investor Tom Russo holds 6.18M shares of this stock.

Analyst Rating

Based on 52 analysts
Buy
Current Rating
115.365
Target Price
+49.09%
Upside Space
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.

FAQs

How does TradingKey generate the Stock Score of Netflix Inc?

The TradingKey Stock Score provides a comprehensive assessment of Netflix Inc based on 34 indicators derived from over 100 underlying data points.
These indicators are categorised into six key dimensions: financial health, company profile, earnings forecasts, price momentum, institutional confidence, and risk assessment, collectively providing investors with a thorough analysis of Netflix Inc’s performance and outlook.

How do we generate the financial health score of Netflix Inc?

To generate the financial health score of Netflix Inc, we analyse various key financial indicators across several core dimensions, including financial fundamentals, earnings quality, operational efficiency, growth potential, and shareholder returns.
By integrating these comprehensive data, the financial health score not only reflects Netflix Inc's overall stability, operational efficiency, and growth potential but also captures the investment returns delivered to shareholders. This score aims to support rational decision-making for investors and other stakeholders. A higher score indicates a better financial health of Netflix Inc.

How do we generate the company valuation score of Netflix Inc?

To generate the company valuation score of Netflix Inc, we use several key financial ratios, including P/E, P/B, P/S, and P/CF. These metrics compare Netflix Inc’s market value to its earnings, assets, sales, and cash flow, serving as core indicators for assessing company value.
By analysing these ratios in an all-round manner, the valuation score reflects not only the market’s current perception of Netflix Inc’s value but also its future profitability and growth potential, thereby supporting more informed investment decisions. A higher score indicates a fairer valuation of Netflix Inc.

How do we generate the earnings forecast score of Netflix Inc?

To calculate the earnings forecast score of Netflix Inc, we consider various key indicators such as analyst ratings, financial forecasts, support and resistance levels, and peer comparisons:
Current ratings and price targets directly reflect analysts’ expectations, while the upside space indicates their views on the stock’s growth potential.
Financial metrics like earnings per share (EPS), revenue, net income, and earnings before interest and taxes (EBIT) are core measures for assessing profitability.
By analysing the high, median, and low ranges of the target price, we can identify price trends and determine key support and resistance levels.
Comparing these indicators against peers provides context for the stock’s performance and helps anchor more realistic expectations.
These factors together form a comprehensive earnings forecast score that accurately reflects the stock’s expected financial performance and growth potential. A higher score suggests that analysts have a more optimistic outlook on Netflix Inc’s future.

How do we generate the price momentum score of Netflix Inc?

When generating the price momentum score for Netflix Inc, we examine momentum indicators including support and resistance levels as well as volume metrics.
Support levels represent price points where buying interest is strong enough to prevent further declines, while resistance levels indicate prices where selling pressure may hinder upward movement. By analysing typical price volume alongside total volume, we assess overall market activity and liquidity. These indicators help identify price trends and potential shifts, enabling more accurate predictions of future earnings.
This comprehensive approach can reflect market sentiment and enable rational forecasts of Netflix Inc’s prices. A higher score indicates a more stable short-term price trend for Netflix Inc.

How do we generate the institutional confidence score of Netflix Inc?

To generate the institutional confidence score of Netflix Inc, we analyse both the proportion of shares held by institutions and the number of shares they own. A higher institutional ownership percentage indicates strong confidence of professional investors, which is generally a positive signal about Netflix Inc’s potential. By examining the number of shares held, we gain deeper insight into institutions’ commitment and attitude toward the stock, as institutional investors typically conduct thorough analysis before making investment decisions. Understanding institutional confidence helps us refine earnings forecasts and provides a more reliable perspective on the company’s future performance and market stability. A higher score indicates greater institutional endorsement of Netflix Inc.

How do we generate the risk management score of Netflix Inc?

To assess the risk management score of Netflix Inc, we examine multiple key indicators related to returns, risk, volatility, and liquidity.
The highest and lowest daily returns reflect the potential size of gains and losses, while the Sharpe ratio measures risk-adjusted return performance. On the risk side, we analyse maximum drawdown and the return-to-drawdown ratio to identify extreme loss scenarios. Skewness helps assess the distribution of returns and whether performance may be biased. Volatility indicators—such as realised volatility and standardised true range—reveal price fluctuations. Downside risk-adjusted returns provide insight into potential losses and gains. Lastly, liquidity metrics like average turnover rate and turnover deviation indicate how actively the stock is traded.
These indicators together provide a multi-dimensional understanding of Netflix Inc’s risk-return profile, serving as core factors of the risk management score. A higher score indicates lower risk on the side of Netflix Inc.
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