Fundamental analysis · SEC EDGAR · TTM through 30/06/2026
NFLX · Nasdaq · Technology
Fundamental quality
93
out of 100
Netflix Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 45.3%) with wide margins (net margin 28.2%) and a business that keeps growing (12.8% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Netflix is the world's largest subscription video-streaming service. Its business is attracting and retaining subscribers with original content, and lately it also monetizes through advertising and by cracking down on password sharing.
EPS growth: 33.8% · Revenue growth: 12.8%
Net margin: 28.2% · ROE: 45.3% · ROIC: 33.6%
Net debt/EBITDA: 0.35x · FCF: 23.1%
Source: SEC EDGAR · TTM through 30/06/2026
The score combines growth, profitability and financial strength, and here its pillars hold up evenly.
Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 24,996 | 2,761 | 1,929 | 8,103 |
| 2021 | 29,698 | 5,116 | -132 | 9,365 |
| 2022 | 31,616 | 4,492 | 1,619 | 9,206 |
| 2023 | 33,723 | 5,408 | 6,926 | 7,426 |
| 2024 | 39,001 | 8,712 | 6,922 | 7,778 |
| 2025 | 45,183 | 10,981 | 9,461 | 5,429 |
Between 2020 and 2025, revenue went from $24,996M to $45,183M (+81%) and net income went from $2,761M to $10,981M (+298%). Meanwhile, its margins have widened (from 11% to 24%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
This company doesn't pay a dividend: it reinvests all its earnings back into the business.
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Is Netflix Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Netflix Inc a good company to invest in?
In terms of business quality, Netflix Inc scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Netflix Inc a profitable company?
Very. Netflix Inc shows a net margin of 28.2% and an ROE of 45.3%, typical of a highly profitable business.
Does Netflix Inc have a lot of debt?
Not particularly. Its net debt is 0.35 times its EBITDA, a low level.
Is Netflix Inc growing?
Its revenue has grown 12.8% annualized in recent years and its earnings per share 33.8%, and without interruption since 2020.
Does Netflix Inc generate cash?
Yes. It converts about 23.1% of its revenue into free cash flow.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see Netflix Inc's filings on EDGAR
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