Netflix

NFC.DE

Entertainment · Communication Services

Price

€68.66

+0.10 (+0.15%)

Market Cap

€285.90B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Exceptional

Growth

Exceptional

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

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Share count falling — buybacks

−4.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 4.55B (2021) → 4.34B (2025)

Winston Score History

The full picture

Netflix is a streaming entertainment company that lets people watch TV shows, movies, and documentaries on their phones, TVs, and computers. It makes its own original content — like original series and films — and also licenses content from other studios. It serves over 300 million paying subscribers around the world.

Netflix makes money primarily through monthly subscription fees, with plans ranging from cheaper ad-supported tiers to premium ad-free options. It operates in over 190 countries, making it one of the largest entertainment distributors on the planet. Its main competitive advantages are its massive content library, strong brand recognition, and the data it uses to recommend shows and decide what to produce. The key growth drivers going forward are expanding its advertising business and growing paid memberships in underpenetrated markets, while its main risk is intense competition from rivals like Disney+, Amazon Prime Video, and Apple TV+, which are all spending heavily on content.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.5% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+10.2% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$3.4B/ year

↑ Rising (+16% vs prior year)

7.5% of revenue

Below sector average (12%)

R&D investment increasing — building for the future

Insider Activity

0.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$9.1B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Netflix is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

51.9%

Healthy — 51.9% gross margin

Profit after running costs

Operating Margin

35.7%

Excellent — 35.7% operating margin

Return on the money invested

ROCE

34.0%

Exceptional — 34.0% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+15.9%

Fast-growing sales (+15.9% YoY)

Profit growth

EPS YoY

+34.2%

Earnings growing fast (+34.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

116%

Turns 116% of profit into real cash

Spare cash per sale

FCF Margin

30.9%

Converts sales into free cash efficiently (30.9%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.43

Conservative — low debt load (0.43)

Covers its interest

Interest Cover

17.29x

Comfortably covers interest (17.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

21.3x

Growth-priced — P/E 21.3

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+3.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (21.3 → 17.4)

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Dividends

Not applicable for this business.

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