Netflix Z Score
NFLX  Stock  USD 241.15 4.54 1.85% 
Netflix  Z Score 
Netflix Z Score Analysis
Netflix's ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..2020  2021  2022 (projected)  
Accounts Payable  656.18 M  837.48 M  903.6 M 
Receivables  610.82 M  804.32 M  885.37 M 
Z Score  =  Sum Of   5 Factors 
Current Netflix Z Score  5.6 
Most of Netflix's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Netflix is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
 
 
 
 

Netflix Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for Netflix is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Netflix's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Netflix's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Netflix's interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition 
Based on the company's disclosures, Netflix has a Z Score of 5.6. This is 391.67% lower than that of the Communication Services sector and significantly higher than that of the Entertainment industry. The z score for all United States stocks is 35.78% higher than that of the company.
Netflix Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Netflix's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Netflix could also be used in its relative valuation, which is a method of valuing Netflix by comparing valuation metrics of similar companies.Netflix is currently under evaluation in z score category among related companies.
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.
2017  2018  2019  2020  2021  2022 (projected)  
Net Income Per Employee  101.62 K  170.6 K  217.08 K  292.96 K  452.76 K  488.51 K  
Revenue Per Employee  2.13 M  2.22 M  2.34 M  2.65 M  2.63 M  2.19 M  
Average Assets  16.71 B  23.04 B  30.58 B  37.53 B  43.16 B  46.57 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  7.17 B  9.26 B  11.92 B  15.51 B  18.63 B  20.1 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  6.99 B  9.26 B  12.01 B  14.89 B  17.12 B  18.47 B  
Earnings before Tax  485.32 M  1.23 B  2.06 B  3.2 B  3.68 B  3.97 B  
Average Equity  3.25 B  4.69 B  6.56 B  9.79 B  11.25 B  12.14 B  
Enterprise Value  86.21 B  121.99 B  149.8 B  246.55 B  283.53 B  305.91 B  
Free Cash Flow  (1.96 B)  (2.85 B)  (3.14 B)  1.93 B  1.74 B  1.87 B  
Invested Capital  2.54 B  5.95 B  12.36 B  14.19 B  16.32 B  17.61 B  
Invested Capital Average  1.03 B  3.99 B  9.03 B  12.99 B  14.94 B  16.12 B  
Market Capitalization  83.07 B  116.72 B  141.8 B  238.89 B  274.73 B  296.41 B  
Tangible Asset Value  4.33 B  5.87 B  9.47 B  13.9 B  15.98 B  17.24 B  
Working Capital  2.2 B  3.21 B  (677.19 M)  1.96 B  2.25 B  1.88 B 
Netflix ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower socialengagement 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 
Netflix Institutional Holders
Institutional Holdings refers to the ownership stake in Netflix that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Netflix's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in highprofile magazines, and presentations at investor conferences help move the stock higher, increasing Netflix's value.Security Type  Shares  Value  
Vanguard Group Inc  Common Shares  34.6 M  6 B  
Blackrock Inc  Common Shares  27.8 M  4.9 B  
State Street Corp  Common Shares  17.2 M  3 B  
Fmr Llc  Common Shares  16.9 M  2.9 B  
Capital Research Global Investors  Common Shares  14.9 M  2.6 B  
Capital International Investors  Common Shares  13.8 M  2.4 B  
Capital World Investors  Common Shares  11.7 M  2 B  
Citadel Advisors Llc  Put Options  6.3 M  1.1 B  
Citadel Advisors Llc  Call Options  5.1 M  896 M 
Netflix Fundamentals
Return On Equity  30.93 %  
Return On Asset  8.50 %  
Profit Margin  16.42 %  
Operating Margin  20.08 %  
Current Valuation  121.87 B  
Shares Outstanding  444.71 M  
Shares Owned by Insiders  1.50 %  
Shares Owned by Institutions  78.18 %  
Number of Shares Shorted  10.85 M  
Price to Earning  20.88 X  
Price to Book  5.62 X  
Price to Sales  3.46 X  
Revenue  31.03 B  
Gross Profit  12.37 B  
EBITDA  6.23 B  
Net Income  5.09 B  
Cash and Equivalents  5.82 B  
Cash per Share  13.09 X  
Total Debt  16.91 B  
Debt to Equity  0.89 %  
Current Ratio  1.04 X  
Book Value Per Share  42.90 X  
Cash Flow from Operations  704.69 M  
Short Ratio  0.84 X  
Earnings Per Share  11.55 X  
Price to Earnings To Growth  2.61 X  
Number of Employees  11.3 K  
Beta  1.36  
Market Capitalization  107.24 B  
Total Asset  13.59 B  
Retained Earnings  5.19 B  
Working Capital  1.13 B  
Current Asset  5.72 B  
Current Liabilities  4.59 B  
Z Score  5.6 
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 internetconnected devices, including TVs, digital video players, television settop boxes, and mobile devices. It also provides DVDsbymail 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.
Netflix Investors Sentiment
The influence of Netflix's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decisionmaking process regarding taking a position in Netflix. The overall investor sentiment generally increases the direction of a stock movement in a oneyear investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Netflix's public news can be used to forecast risks associated with investment in Netflix. The trend in average sentiment can be used to explain how an investor holding Netflix can time the market purely based on public headlines and social activities around Netflix. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Netflix's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Netflix's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Netflix's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Netflix.
Netflix Implied Volatility  52.45 
Netflix's implied volatility exposes the market's sentiment of Netflix stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Netflix's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Netflix stock will not fluctuate a lot when Netflix's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Netflix in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Netflix's short interest history, or implied volatility extrapolated from Netflix options trading.
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Netflix using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
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Additionally, see Netflix Piotroski F Score and Netflix Valuation 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Complementary Tools for Netflix Stock analysis
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.