Netflix Piotroski F Score

NFLX
 Stock
  

USD 241.15  4.54  1.85%   

This module uses fundamental data of Netflix to approximate its Piotroski F score. Netflix F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Netflix. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Netflix financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Additionally, see Netflix Altman Z Score, Netflix Correlation, Netflix Valuation, as well as analyze Netflix Alpha and Beta and Netflix Hype Analysis.
  
Netflix Total Debt is fairly stable at the moment as compared to the past year. Netflix reported Total Debt of 18.76 Billion in 2021. Debt Non Current is likely to rise to about 19.6 B in 2022, whereas Debt Current is likely to drop slightly above 447.3 M in 2022. Netflix Total Assets Per Share are fairly stable at the moment as compared to the past year. Netflix reported Total Assets Per Share of 100.42 in 2021. Asset Turnover is likely to rise to 0.95 in 2022, whereas Accounts Payable Turnover is likely to drop 33.06 in 2022.
At this time, it appears that Netflix's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsDecreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginNo ChangeFocus

Netflix Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Netflix is to make sure Netflix is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Netflix's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Netflix's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares408.6 M443.2 M
Significantly Down
Increasing
Slightly volatile
Weighted Average Shares Diluted420.9 M455.4 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations423.6 M392.6 M
Significantly Up
Decreasing
Very volatile
Total Assets48.1 B44.6 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities31 B28.7 B
Significantly Up
Increasing
Slightly volatile
Current Assets6.5 B8.1 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities9.2 B8.5 B
Significantly Up
Increasing
Slightly volatile
Total Debt20.2 B18.8 B
Significantly Up
Increasing
Slightly volatile
Return on Average Assets10.0612.2011
Significantly Down
Decreasing
Very volatile
Gross Margin36.5241.6366
Fairly Down
Increasing
Slightly volatile
Asset Turnover0.950.7082
Significantly Up
Decreasing
Slightly volatile

Netflix F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Netflix's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Netflix in a much-optimized way.

About Netflix Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

31.14

Netflix Book Value per Share is fairly stable at the moment as compared to the past year. Netflix reported Book Value per Share of 28.86 in 2021

Netflix Current Valuation Drivers

We derive many important indicators used in calculating different scores of Netflix from analyzing Netflix's financial statements. These drivers represent accounts that assess Netflix's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Netflix's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee101.62 K170.6 K217.08 K292.96 K452.76 K488.51 K
Revenue Per Employee2.13 M2.22 M2.34 M2.65 M2.63 M2.19 M
Average Assets16.71 B23.04 B30.58 B37.53 B43.16 B46.57 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA7.17 B9.26 B11.92 B15.51 B18.63 B20.1 B
Earnings Before Interest Taxes and Depreciation Amortization USD6.99 B9.26 B12.01 B14.89 B17.12 B18.47 B
Earnings before Tax485.32 M1.23 B2.06 B3.2 B3.68 B3.97 B
Average Equity3.25 B4.69 B6.56 B9.79 B11.25 B12.14 B
Enterprise Value86.21 B121.99 B149.8 B246.55 B283.53 B305.91 B
Free Cash Flow(1.96 B)(2.85 B)(3.14 B)1.93 B1.74 B1.87 B
Invested Capital2.54 B5.95 B12.36 B14.19 B16.32 B17.61 B
Invested Capital Average1.03 B3.99 B9.03 B12.99 B14.94 B16.12 B
Market Capitalization83.07 B116.72 B141.8 B238.89 B274.73 B296.41 B
Tangible Asset Value4.33 B5.87 B9.47 B13.9 B15.98 B17.24 B
Working Capital2.2 B3.21 B(677.19 M)1.96 B2.25 B1.88 B

Netflix ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Netflix's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Netflix's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Netflix Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Netflix's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Netflix using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Netflix based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services in the United States. The company has approximately 222 million paid members in 190 countries. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

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Additionally, see Netflix Altman Z Score, Netflix Correlation, Netflix Valuation, as well as analyze Netflix Alpha and Beta and Netflix Hype Analysis. Note that the Netflix information on this page should be used as a complementary analysis to other Netflix's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running Netflix price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.
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Is Netflix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Netflix. If investors know Netflix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Netflix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.077
Market Capitalization
110.8 B
Quarterly Revenue Growth YOY
0.086
Return On Assets
0.085
Return On Equity
0.31
The market value of Netflix is measured differently than its book value, which is the value of Netflix that is recorded on the company's balance sheet. Investors also form their own opinion of Netflix's value that differs from its market value or its book value, called intrinsic value, which is Netflix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Netflix's market value can be influenced by many factors that don't directly affect Netflix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Netflix's value and its price as these two are different measures arrived at by different means. Investors typically determine Netflix value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netflix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.