Netflix Inc (NFLX)

NFLX
Netflix Inc

Price: $215.88

Industry: Nonfood Retail-Wholesale

Chaikin Power Gauge Report | Generated: Thu Sep 08 17:08 EDT 2011
$215.88

Power Gauge Rating

NFLX - Very Bearish

The Chaikin Power Gauge Rating for NFLX is very bearish due to very poor financial metrics, very bearish price/volume activity and negative expert opinions. The rating also reflects very strong earnings performance. NFLX's financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.
TM

Financial Metrics

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Neutral
NFLX Netflix Inc September 07, 2011

Chaikin Sentiment Gauge for NFLX is neutral. Stories concerning NFLX have a balanced or neutral sentiment.

TM

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

LT Debt/Equity Ratio

Very Bearish
NFLX's financial metrics are very poor. The company may be overvalued and has relatively low revenue per share. The rank is based on a high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.

Price to Book Value

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Ratio Current Ratio LT Debt/Equity TTM 1.33 0.81

Valuation
Ratio Price/Book Price/Sales TTM 33.94 5.25

Returns
Ratio Return on Invest Return on Equity TTM 42.1% 78.2%

Earnings Performance

Earnings Performance Rating

Earnings Growth

Very Bullish
NFLX's earnings performance has been very strong. The company has a history of strong earnings growth and has a stable 5 year earnings trend. The rank is based on high earnings growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Earnings Surprise

Earnings Trend

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

12/06 Revenue(M) Rev % Growth EPS EPS % Growth 996.66 44.86% $0.78 0.00% 12/07 786.17 -21.12% $1.00 28.21% 12/08 1,364.66 73.58% $1.36 36.00% 12/09 1,670.27 22.39% $2.05 50.74% 12/10 2,162.62 29.48% $3.06 49.27%

EPS Estimates
Factor Quarterly EPS Yearly EPS Factor 3-5 year EPS Actual EPS Prev $0.73 $3.06 Actual EPS Growth 29.84% EST EPS Current $1.01 $4.64 Est EPS Growth 31.25% Change +0.28 +1.58 Change +1.41

EPS Surprise
Estimate Latest Qtr 1 Qtr Ago 2 Qtr Ago 3 Qtr Ago $1.11 $1.07 $0.71 $0.72 Actual $1.26 $1.11 $0.87 $0.70 Difference $0.15 $0.04 $0.16 $-0.02 % Difference 13.51 3.74 22.54 -2.78

EPS Quarterly Results

FY 12/09 12/10 12/11 Qtr 1 $0.38 $0.61 $1.14 Qtr 2 $0.56 $0.83 $1.30 Qtr 3 $0.54 $0.73 Qtr 4 $0.58 $0.90 Total $2.06 $3.07 -

Fiscal Year End Month is December.

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Price Trend & Expert Opinions

Price/Volume Activity

Price/Volume Activity Rating

Relative Strength vs Market

Very Bearish
Price and volume activity for NFLX is very bearish. NFLX is trading on lower volume than its 90 day average volume and has a declining price trend. The rank for NFLX is based on its price strength versus the market, positive Chaikin money flow, a negative Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.

Chaikin Money Flow

Price Trend

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether NFLX is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity
Factor 52 Week High 52 Week Low % Change YTD Rel S&P 500 Value 298.73 138.48 29.94%

Price Activity
Factor % Change Price - 4 Weeks % Change Price - 24 Weeks % Change Price - 4 Wks Rel to S&P % Change Price - 24 Wks Rel to S&P Value -7.06% -5.70% -13.10% 2.08%

Volume Activity
Factor Average Volume 20 Days Average Volume 90 Days Chaikin Money Flow Persistency Value 3,811,420 4,418,324 79%

Expert Opinions

Expert Opinions

Earnings Estimate Revisions

Bearish
Expert opinions about NFLX are negative. Short interest in NFLX is high and insiders are not net buyers of NFLX's stock. The rank for NFLX is based on analysts revising earnings estimates upward, a high short interest ratio, insiders not purchasing significant amounts of stock and optimistic analyst opinions.

Short Interest

Insider Activity

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions

Current Current Qtr Next Qtr 1.01 1.21 Current Current FY 4.64 7 Days Ago % Change 1.01 1.21 0.00% 0.00%

Analyst Recommendations
Factor Mean this Week Mean Last Week Change Mean 5 Weeks Ago Value Hold Hold 0.00 Hold

EPS Estimates Revision Summary

Last Week Up Curr Qtr Curr Yr Next Qtr 0 0 0 1 Down 0 0 0 0 Last 4 Weeks Up 0 1 0 1 Down 1 1 2 1

30 Days Ago % Change 4.67 -0.03

Next Yr

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The Company & Its Competitors

NFLX's Competitors in Nonfood Retail-Wholesale

Company NFLX OWW IACI PCLN AMZN OSTK EBAY Power Gauge Historic EPS growth 29.84% -3.75% -10.50% 26.38% 32.26% 6.71% 15.61% Projected EPS growth 31.25% 23.00% 27.00% 22.60% 25.67% 20.00% 11.43% Profit Margin 8.04% -8.47% 9.07% 19.75% 2.58% 0.30% 17.42% PEG 1.49 3.83 1.06 1.11 4.44 4.74 1.55 PE 54.82 52.80 43.60 34.58 98.17 94.73 18.59 Revenue(M) 2,163 757 1,637 3,085 34,204 1,090 9,156

News Headlines for NFLX Time Warner shares rise after Barclays upgrade - Sep 7, 2011 Netflix unveils Latin America service in Brazil Sep 5, 2011 Netflix unveils Latin America service in Brazil Sep 5, 2011 Netflix Unveils "Just for Kids" Experience - Aug 16, 2011 Viacom fiscal 3Q earnings grow 37 percent Aug 5, 2011

Company Details NETFLIX INC 100 WINCHESTER CIRCLE LOS GATOS, CA 95032-7606 USA Phone: 408-540-3700 Fax: 408-540-3737 Website: http://http://www.netflix.com Full Time Employees: 2,180 Sector: Retail/Wholesale

Company Profile Netflix Inc. is the largest online movie rental subscription service in the United States providing subscribers access to a comprehensive library of more than 18,000 movie, television and other filmed entertainment titles. The standard subscription plan allows subscribers to have three titles out at the same time with no due dates, late fees or shipping charges for a monthly fee.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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