Netflix, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 9, 2026.
Netflix, Inc. gets a balanced fundamental read when revenue growth of 11.89%, EPS growth of 32.58%, free-cash-flow growth of 51.23%, net margin of 28.22%, and ROIC of 24.34% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.14x and debt-to-equity is 0.47x, so the balance-sheet read is part of the final view rather than a footnote.
Netflix, Inc. has market cap of $316.58B and closed at $76.03 on September 9, 2026.
Five-year revenue CAGR is 11.89% and five-year EPS CAGR is 32.58%.
Five-year free-cash-flow CAGR is 51.23%.
Net margin is 28.22% and ROIC is 24.34%.
Current ratio is 1.14x and debt-to-equity is 0.47x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Analyzing Netflix, Inc. requires evaluating whether top-line expansion, bottom-line execution, cash generation, capital efficiency, and leverage present a cohesive picture. At the market close of $76.03 on September 9, 2026, the business shows positive momentum across several operational fronts. However, a robust fundamental analysis must look past the headline numbers to assess the underlying quality of these trends.
The core analysis begins with a five-year revenue CAGR of 11.89% alongside a five-year EPS CAGR of 32.58%. Comparing these metrics against a five-year free cash flow CAGR of 51.23% helps determine if the reported earnings growth is backed by actual cash generation. This multi-dimensional approach ensures that no single metric carries the entire weight of our operational assessment.
Current compounder snapshot · NFLX
Live supporting context; not part of the article's frozen 2026-09-09 evidence snapshot.
Operating within the Communication Services sector, Netflix, Inc. presents an interesting mix of growth, margin performance, and capital allocation. This baseline assessment integrates the firm's market capitalization, valuation multiples, and balance sheet leverage to establish a clear picture of its operating model before diving into specific financial statements and historical trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered. Quarter ended Jun 2026 (2026-06-30): $12.56B.
+448.42% over 10Y
tgmcharts.com
Five-year revenue CAGR: 11.89%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 11.89% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
How Top-Line Expansion Translates to Earnings Per Share
Evaluating growth conversion reveals how efficiently top-line gains reach the bottom line. With a five-year revenue CAGR of 11.89%, the company has demonstrated steady demand, while its five-year EPS CAGR of 32.58% indicates substantial operating leverage. This faster pace of earnings growth relative to sales suggests that profitability has benefited from structural efficiencies, though the sustainability of this trend requires closer inspection of margins and cash flows.
EPS
NFLX EPS
$0.81
EPS history shows how much of the business growth has reached shareholders. Quarter ended Jun 2026 (2026-06-30): $0.81.
≈68x over 10Y
tgmcharts.com
Five-year EPS CAGR: 32.58%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 32.58% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Testing Profitability Against Cash Generation
Earnings figures can occasionally obscure the true health of a business, making cash flow the ultimate arbiter of operational quality. The company's five-year free cash flow CAGR of 51.23% serves as a critical validation point for its reported net income. When cash generation expands alongside or ahead of accounting profits, it increases confidence in the quality of the reported earnings trajectory.
free cash flow
NFLX free cash flow
$1.37B
Free cash flow checks whether earnings are converting into owner cash. Quarter ended Jun 2026 (2026-06-30): $1.37B.
+370.01% over 10Y
tgmcharts.com
Five-year free-cash-flow CAGR: 51.23%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 51.23% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Reinvestment Efficiency and Profitability Metrics
To determine the durability of the company's expansion, we examine its net margin of 28.22% and its return on invested capital (ROIC) of 24.34%. The net margin demonstrates the profitability of current operations, while the ROIC indicates that capital reinvested back into the business continues to generate strong returns, supporting long-term value creation.
net margin
NFLX net margin
27.08%
Net margin is the operating-quality check behind the growth record. Quarter ended Jun 2026 (2026-06-30): 27.08%.
+24.8pp over 10Y
tgmcharts.com
Net margin (TTM): 28.22%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 28.22% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
ROIC
NFLX ROIC
24.34%
ROIC tests whether the business earns enough on reinvested capital to deserve attention. Quarter ended Jun 2026 (2026-06-30): 24.34%.
tgmcharts.com
Latest ROIC: 24.34%.
ROIC of 24.34% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity and Leverage Guardrails
Balance sheet health defines the operational boundaries and flexibility of the business. With a current ratio of 1.14x and a debt-to-equity ratio of 0.47x, the company maintains a structured capital framework. These metrics are vital because even highly profitable growth can be compromised if liquidity tightens or if debt obligations become restrictive.
debt-to-equity
NFLX debt-to-equity Chart
0.54x
Debt-to-equity keeps the checkup honest about balance-sheet flexibility. Historical series through 2025-12-31.
-67.66% over 5Y
tgmcharts.com
Latest debt-to-equity ratio: 0.47x.
Debt-to-equity of 0.47x and current ratio of 1.14x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and Implied Expectations
Valuation metrics indicate what expectations are already priced into the stock. Trading at a trailing price-to-earnings multiple of 24.14x and offering an earnings yield of 4.14%, the market is pricing in continued operational strength. The current market price sits below the analyst DCF (FMP) reference, suggesting a positive margin of safety relative to consensus intrinsic value estimates.
The close at $76.03 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Operational Drivers and Potential Risks
The positive fundamental case rests on the alignment of a 11.89% revenue CAGR, strong margins, high capital returns, and a manageable balance sheet. Conversely, the primary risk is that free cash flow growth could diverge from earnings growth if content investments rise, or that capital efficiency could deteriorate if returns on new investments fall below historical benchmarks.
Bull and bear case
Fundamental support
Five-year revenue CAGR of 11.89% and five-year EPS CAGR of 32.58% support the business case.
Net margin of 28.22% and ROIC of 24.34% are the quality checks behind the thesis.
Fundamental pressure
Free-cash-flow CAGR of 51.23% can weaken the read if it falls away from EPS growth.
Debt-to-equity of 0.47x and current ratio of 1.14x are the balance-sheet checks that can change the view.
Refresh Triggers and Concluding Thoughts
This fundamental assessment remains valid as long as the underlying financial relationships hold. Significant shifts in future filings that drag revenue growth, EPS growth, cash generation, or return on invested capital away from these historical benchmarks would require a reassessment of the thesis. This analysis is intended as general research and does not constitute personalized investment advice.
FAQ
What is the fundamental read on NFLX?
Netflix, Inc. is judged through revenue growth of 11.89%, EPS growth of 32.58%, free-cash-flow growth of 51.23%, net margin of 28.22%, and ROIC of 24.34%.
Which NFLX fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this NFLX checkup refresh?
Its figures are as of September 9, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
Revenue growth moving away from the current five-year CAGR of 11.89%.
Free-cash-flow growth drifting away from five-year EPS CAGR of 32.58%.
ROIC or balance-sheet flexibility weakening from ROIC of 24.34% and debt-to-equity of 0.47x.
The bottom line
Netflix, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
“The impact of higher operating income was partially offset by a $161 million increase in the provision for income taxes.”
“Debt, net of debt issuance costs and discounts, decreased $154 million primarily due to the remeasurement of our Euro-denominated notes in the six months ended June 30, 2026.”
“Operating margin for the three months ended June 30, 2026 decreased by approximately one percentage point as compared to the prior comparative period.”
“The decrease in operating margin was primarily driven by technology and development expenses and sales and marketing expenses growing at a faster rate than revenue.”
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.
