Netflix, Inc. (NFLX)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Netflix as a business first. In fiscal Q3 2026 (the quarter ended 2026-09-30), filed results show revenue of $12.9B, net income of $3.7B, and diluted EPS of $0.87, versus $11.5B, $2.5B, and $0.59 in fiscal Q3 2025 (the quarter ended 2025-09-30). For fiscal year 2025 (period ended 2025-12-31), revenue was $45.2B, net income $11.0B, and diluted EPS $2.53, versus $39.0B, $8.7B, and $1.98 in fiscal year 2024 (period ended 2024-12-31). The trajectory is good, and trailing free cash flow is $11.4B, a 4.3% FCF yield on the $262.4B market cap. FairStock calculations show ROE of 49.54%, ROCE of 16.08%, D/E of 0.55, Altman Z of 7.31, and Piotroski of 6/9: profitable, cash-generative, and not financially stretched. The moat is not proven by filings alone, but global entertainment scale and high returns are evidence of durable economics. At the $63.90 close on 2026-10-26, the P/E is 20.09, P/B 8.83, EV/EBITDA 7.60, PEG 2.35, and the Graham Number is $22.43, a -193.58% margin of safety. So this is not Graham-cheap; the price already reflects much of the growth. The 52-week range of $62.86 to $116.73 and beta of 1.53 remind me that Mr. Market can swing this price widely, but volatility alone does not create value. I see a strong business at a fair-to-full price, not a bargain.

In plain English: Netflix provides streaming entertainment worldwide. The business looks strong: sales and profit rose in the latest filed quarter, and cash generation is solid. The share price looks fair to expensive compared with the company's profits and growth, not a clear bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer