Netflix

NFLX

Entertainment · Communication Services

Price

$79.59

-0.55 (-0.69%)

Market Cap

$331.41B

Exchange

NASDAQ

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

Strong

Stability

Exceptional

Valuation

Strong

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Share count falling — buybacks

−5.2% over 4y

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

Diluted shares outstanding: 4.55B (2021) → 4.32B (2025)

Winston Score History

The full picture

Netflix is a streaming entertainment company that lets people watch TV shows, movies, and documentaries over the internet. Subscribers pay a monthly fee to access Netflix's library, which includes both licensed content from other studios and original shows and films that Netflix makes itself. It is one of the largest streaming services in the world, with subscribers in over 190 countries.

Netflix makes money primarily through monthly subscription fees, with plans ranging from ad-supported tiers to premium options. The company generates most of its revenue from North America but has been growing rapidly in international markets. Its main competitive advantages are its massive content library, strong brand recognition, and data-driven approach to deciding what shows to make. The biggest growth drivers going forward are its expanding advertising business and live content deals, while the main risk is intense competition from Disney+, Amazon Prime Video, and other streaming services fighting for the same subscribers.

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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

+13.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+9.5% YoY

YoY Growth Rate

Slow 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

33.4%

Excellent — 33.4% operating margin

Return on the money invested

ROCE

32.3%

Exceptional — 32.3% 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

+16.0%

Fast-growing sales (+16.0% YoY)

Profit growth

EPS YoY

+34.0%

Earnings growing fast (+34.0% 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

87%

Modest — 87% of profit becomes cash

Spare cash per sale

FCF Margin

22.7%

Converts sales into free cash efficiently (22.7%)

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

0.47

Conservative — low debt load (0.47)

Covers its interest

Interest Cover

16.94x

Comfortably covers interest (16.9x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

24.6x

Growth-priced — P/E 24.6

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

Cheaper or dearer next year

P/E vs Forward

+9.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (24.6 → 15.5)

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Dividends

Not applicable for this business.

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