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Netflix Inc.

www.InvestingSidekick.com

NFLX

Value Report

I.S.Q. Score: 3/10


TTM EPS:
Next year EPS estimate:
Net cash* / (debt) p.s:
Net debt EBITDA:
Net debt Equity:

3.92
3.49
9.20
-

Op. profit p.s.

Jun

Sep

Dec

Mar

TTM

12M ending 2015


12M ending 2014
12M ending 2013
12M ending 2012
12M ending 2011

2.16
0.97
0.29
2.19
1.48

1.83
0.96
0.29
1.84
1.33

1.08
1.38
0.35
1.12
1.49

1.61
1.63
0.57
(0.03)
1.95

6.67
4.94
1.50
5.12
6.24

Operational Performance (Rolling 12 months)


Gross Margin**

SG&A %

R&D %

Net Debt / EBITDA**

Op Margin

40%

18%

35%

16%

ROE

ROIC
140%

1.2

120%

1.0
14%

30%

100%

12%

0.8

25%

80%

10%
0.6

20%
8%
15%

6%

10%

60%
0.4
40%

4%

5%

2%

0%

0%

2009

$ millions

2010

2011

0.2

20%

0%

2012

2013

2014

TTM

Income Statement
Revenue

CAGR/average
5 year

10 year

5,808
27%
3,341
48%
403
16%
237
18%
3.92
15%
237
18%
- #DIV/0!

27%
40%
35%
29%
27%
29%
#DIV/0!

1,670
451
192
116
2.17
116
-

2,163
624
284
161
3.05
161
-

3,205
1,216
376
226
4.08
226
-

3,609
1,752
50
17
0.31
17
-

4,375
2,445
228
112
1.89
112
-

5,505
3,184
403
267
4.42
267
-

82
199
89
1.66

114
290
108
2.04

398
643
(404)
(7.29)

348
745
(761)
(13.70)

700
1,334
(758)
(12.71)

708
1,858
(916)
(15.16)

558
1,909
(1,403)
(23.15)

54%
56%
-260%
-256%

15%
28%
#NUM!
#NUM!

259
325
(46)
7

340
276
(34)
-

840
318
(50)
-

1,702
23
(41)
-

2,242
98
(54)
-

2,782
16
(70)
-

2,938
(147)
(69)
-

61%
-45%
9%
-100%

41%
-20%
4%
#DIV/0!

279
53,440
-

243
52,782
-

268
55,399
-

(19)
55,587
-

44
59,607
-

(53)
60,416
-

(217)
60,620
-

-172%
2%
#DIV/0!

#NUM!
1%
#DIV/0!

Gross Margin

35.4%

37.2%

36.3%

27.2%

29.5%

31.8%

32.3%

32.4%

33.5%

Operating Margin

11.5%

13.1%

11.7%

1.4%

5.2%

7.3%

6.9%

7.8%

7.4%

EBITDA
Operating Profit
Net profit (continuing)
EPS (continuing)
Adjusted net income
Dividend per share

Balance Sheet
Net cash* / (debt)
Shareholders equity
Tangible book value
TBV per share

Cash Flow
Depreciation & amortization
Net cash from operations
Net Cap Ex
Net Disposals (acquisitions)

Other Information
Free cash flow
Shares outstanding (000s)
Accts Receivable days
Inventory days

Ratios

Adjusted Net Profit Margin


ROIC
Quick Ratio

6.9%

7.4%

7.1%

0.5%

2.6%

4.8%

4.1%

4.5%

5.2%

99.0%

96.8%

96.5%

7.1%

21.1%

26.8%

23.7%

49.7%

94.7%

0.6

1.1

1.4
Report updated on:

23-May-15

0.9

0.7

0.4

Share price at report date:

0.6
$624.25

0.6

1.0

Market Cap: $37,842m

*Net cash/debt is total debt offset by cash, cash equivalents and short term investments. **Plotted against Left hand axis
Investing Sidekick Ltd. All rights reserved. This report is for information purposes only and accuracy is not guaranteed. Certain financial information included in Investing Sidekick is proprietary to
Mergent, Inc. (Mergent) Copyright 2015. Reproduction of such information in any form is prohibited. Because of the possibility of human or mechanical error by Mergents sources, Mergent or
others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.

Netflix Inc.

www.InvestingSidekick.com

NFLX

Value Report

EV/OP trading range

Conservative model value

Aggressive model value

Current EV/OP (TTM)

Current EV/OP 92.6


(Enterprise Value / Operating Profit)

Return on Invested Capital

258.0

Free Cash ROIC

49.7%
30.6%

(5 year average)

208.0

Free Cash Flow Operating Profit


106%
15 years
88%
10 years
36%
5 years

158.0

108.0

% spending of FCF on
(0%)
0%
31%
24%
36%

Net Acquisitions/(divestitures)
Dividends

58.0

Share buybacks / (issues)


Decrease/(increase) of net debt

8.0

Other spending/(asset sales)

(cumulative last 10 years)

P/B trading range

P/B = 1

Book value p.s. 31.49

Current P/B

Tangible Book (TBV) p.s.


Net Net Curr. Assets p.s.
Net cash* / (debt) p.s.

50.9

(23.15)
(29.57)
9.20

Average annual change in


Book Value p.s.
TBV p.s.

40.9

15 years
10 years
5 years

30.9

32.6%
55.7%

15 years
10 years (58.9%)
5 years (217.5%)

20.9

Compounded annual growth in


Book Value p.s.
TBV p.s.
11.5%
15 years
15 years #NUM!
25.0%
10 years
10 years (219.4%)
53.8%
5 years
5 years #NUM!

Free Cash Flow

Tangible Book Value per share

Book Value per share

Quick Ratio (Acid test)


Accounts receivable days

500

40

400

30

300

20

200

10

100
0

Inventory days

120%

1.0
0.9

100%

Quick Ratio

Operating Income

Book Value per share ($)

Operating Profit / FCF ($mil)

0.9

0.8
0.7

80%

0.6
60%

0.5
0.4

40%

0.3

(10)

(100)

(20)

(200)
(300)

(30)

0.2

20%

0.1
0%

0.0

Inventory/Accounts receivable days

10.9

(Seasonally adjusted data)

Report updated on: 23-May-15

Share price at report date:

$624.25

Market Cap: $37,842m

*Net cash/debt is total debt offset by cash, cash equivalents and short term investments.
Investing Sidekick Ltd. All rights reserved. This report is for information purposes only and accuracy is not guaranteed. Certain financial information included in Investing Sidekick is proprietary to
Mergent, Inc. (Mergent) Copyright 2015. Reproduction of such information in any form is prohibited. Because of the possibility of human or mechanical error by Mergents sources, Mergent or
others, Mergent does not guarantee the accuracy, adequacy, completeness, timeliness or availability or for the results obtained from the use of such information.