Netflix (NFLX) Risk Assessment

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What is Netflix Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Netflix is: Low Risk: Strong fundamentals, worth long-term holding.

Competitive Comparison of Netflix's Risk Assessment

For the Entertainment subindustry, Netflix's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Netflix's Risk Assessment Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Netflix's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Netflix's Risk Assessment falls into.

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Netflix (NAS:NFLX) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Netflix Risk Assessment Related Terms

Thank you for viewing the detailed overview of Netflix's Risk Assessment provided by GuruFocus.com. Please click on the following links to see related term pages.

Netflix Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (NAS:NFLX) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

NFLX80:Thailand NFLX:Peru NFLX:Mexico 1NFLX:Italy NFCd:UK 0QYI:UK NFC1:Germany NFC:Germany NFC:Germany NFC:Germany NFLX:Canada NFLX34:Brazil NFLX:Austria NFLX:Argentina

Address

121 Albright Way, Los Gatos, CA, USA, 95032

Website

https://www.netflix.com

Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

Executives

Jeffrey William Karbowski	officer: Chief Accounting Officer	121 ALBRIGHT WAY, LOS GATOS CA 95032
Leslie J Kilgore	director	121 ALBRIGHT WAY, LOS GATOS CA 95032
Strive Masiyiwa	director	265 FRANKLIN STREET, BOSTON MA 02110
Bradford L Smith	director	MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Ann Mather	director
Theodore A Sarandos	officer: Chief Content Officer	C/O NETFLIX, INC, 121 ALBRIGHT WAY, LOS GATOS CA 95032
Spencer Adam Neumann	officer: Chief Financial Officer	SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Gregory K Peters	officer: Intl. Development Officer	C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
David A Hyman	officer: General Counsel	C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Reed Hastings	director, 10 percent owner, officer: CEO, other: CEO	121 ALBRIGHT WAY, LOS GATOS CA 95032
Mathias Dopfner	director	C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019
Jay C Hoag	director	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Richard N Barton	director	C/O IAC, 152 WEST 57TH STREET, NEW YORK NY 10019
Anne M Sweeney	director	C/O 121 ALBRIGHT WAY, LOS GATOS CA 95032
Timothy M Haley	director	3000 SAND HILL ROAD, 2-290, MENLO PARK CA 94025