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Thursday, May 21, 2015



INDUSTRY: Specialty Retailers

Netflix, Inc., an Internet television network, engages in the Internet delivery of TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. The company operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. It also provides DVDs-by-mail membership services. The company has approximately 57 million customers in approximately 50 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

We see a strong opportunity on NFLX based on past earnings and the possibility to provide the service in China.
NFLX is in talks with a Chinese media same founder of Alibaba Group Holding Ltd (NYSE: BABA)

NFLX has reported 1Q results on April 15th of 0.77 cts vs estimate of 0.63 cts, revenues came $1573 millions vs a year ago $1270 millions, year over year +23.9%.
4Q results reported 0.72 cts vs estimated 0.44 cts, revenues $1485 millions vs a year ago of $1175 millions, year over year +26.4%.
3Q results reported 0.96 cts vs vs estimated 0.91 cts, revenues $1223 millions vs a year ago of $884 millions, year over year +38.3%.

Netflix Inc is growing very fast in the last 4 years beating the consensus earnings since April 2011.
We estimate a target for NFLX in the short term of $690.

Analyst are optimist about the stock, mostly of them upgraded the stock in the 2015:


Gross Margin: 31.83
Operating Margin: 7.31
Pretax Margin: 6.35
Net Margin: 4.85
Return on Assets: 4.28
Return on Equity: 16.72
Return on Total Capital: 11.47
Return on Invested Capital: 11.48


Current Ratio: 1.48
Current Ratio: 0.60

52 week low: 315.54
52 week high: 628.50

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