Last Price$891.1(1.7%)
Market Cap$381.1B
LTM Rule of 40 (EBIT margin)
42.3%
5Y avg
35.7%
Entertainment industry
median
3.9%
Stock quality & Intrinsic value
8/10
(0.0%) overvalued
Netflix, Inc. Rule of 40 (EBIT margin)
Annual
Quarterly
LTM
Industry median
Company stand-alone
Crunching data... Almost there!
| Dec'05 | Dec'06 | Dec'07 | Dec'08 | Dec'09 | Dec'10 | Dec'11 | Dec'12 | Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Dec'23 | Dec'24 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rule of 40 (EBIT margin) | 35.2% | 52.6% | 28.5% | 22.1% | 33.9% | 42.6% | 60.2% | 14.0% | 26.4% | 33.1% | 27.7% | 34.6% | 39.6% | 45.2% | 40.5% | 42.4% | 39.7% | 24.3% | 27.3% | 42.4% |
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Netflix, Inc. (NFLX) Rule of 40 (EBIT margin) comparison analysis
General
LTM Rule of 40 (EBIT margin)
OTHER METRICS
Company name
Revenue growth
EPS growth
Net Income margin
Netflix, Inc.NFLX
42.3%
15.6%
65.6%
22.3%
Median Peer Set
15.8%
4.6%
17.7%
4.7%
TKO Group Holdings, Inc.TKO
91.8%
46.9%
N/A
(2.1%)
Fox CorporationFOX
23.2%
(6.3%)
34.2%
10.7%
Formula One GroupFWONK
20.4%
25.2%
(73.6%)
5.7%
The Walt Disney CompanyDIS
19.6%
2.8%
110.9%
5.4%
Endeavor Group Holdings, Inc.EDR
18.0%
13.1%
(38.7%)
6.0%
Warner Music Group Corp.WMG
13.5%
6.4%
1.2%
6.8%
Roku, Inc.ROKU
13.0%
18.0%
(82.2%)
(3.1%)
News CorporationNWS
7.2%
2.1%
80.8%
2.6%
Live Nation Entertainment, Inc.LYV
5.4%
1.8%
181.9%
3.9%
Warner Bros. Discovery, Inc.WBD
(30.4%)
(4.8%)
260.2%
(28.7%)
NFLX key stats
USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
| Dec'05 | Dec'06 | Dec'07 | Dec'08 | Dec'09 | Dec'10 | Dec'11 | Dec'12 | Dec'13 | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Dec'23 | Dec'24 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 682.2 34.8% | 996.7 46.1% | 1,205.3 20.9% | 1,364.7 13.2% | 1,670.3 22.4% | 2,162.6 29.5% | 3,204.6 48.2% | 3,609.3 12.6% | 4,374.6 21.2% | 5,504.7 25.8% | 6,779.5 23.2% | 8,830.7 30.3% | 11,692.7 32.4% | 15,794.3 35.1% | 20,156.4 27.6% | 24,996.1 24.0% | 29,697.8 18.8% | 31,615.6 6.5% | 33,723.3 6.7% | 39,001.0 15.6% |
| Cost of Goods Sold (COGS) | 464.6 | 627.0 | 786.2 | 910.2 | 1,079.3 | 1,357.4 | 2,039.9 | 2,625.9 | 3,083.3 | 3,752.8 | 4,591.5 | 6,029.9 | 7,659.7 | 9,967.5 | 12,440.2 | 15,276.3 | 17,332.7 | 19,168.3 | 19,715.4 | 21,038.5 |
% margin | 217.7 31.9% | 369.7 37.1% | 419.2 34.8% | 454.4 33.3% | 591.0 35.4% | 805.3 37.2% | 1,164.7 36.3% | 983.4 27.2% | 1,291.3 29.5% | 1,751.9 31.8% | 2,188.0 32.3% | 2,800.8 31.7% | 4,033.0 34.5% | 5,826.8 36.9% | 7,716.2 38.3% | 9,719.7 38.9% | 12,365.2 41.6% | 12,447.3 39.4% | 14,007.9 41.5% | 17,962.5 46.1% |
| Operating Expenses | 214.7 | 305.3 | 328.0 | 332.9 | 399.1 | 521.6 | 779.6 | 933.4 | 1,063.0 | 1,349.2 | 1,882.2 | 2,421.0 | 3,194.4 | 4,221.6 | 5,112.0 | 5,134.4 | 6,170.7 | 6,814.4 | 7,053.9 | 7,544.9 |
| Research & Development Expenses (R&D) | 30.9 | 48.4 | 71.4 | 89.9 | 114.5 | 163.3 | 259.0 | 329.0 | 378.8 | 472.3 | 650.8 | 852.1 | 1,052.8 | 1,221.8 | 1,545.1 | 1,829.6 | 2,273.9 | 2,711.0 | 2,675.8 | 2,925.3 |
| Selling, General & Administrative Expenses (SG&A) | 185.7 | 261.7 | 270.8 | 249.4 | 289.1 | 364.4 | 520.6 | 604.4 | 684.2 | 876.9 | 1,231.4 | 1,568.9 | 2,141.6 | 2,999.8 | 3,566.8 | 3,304.8 | 3,896.8 | 4,103.4 | 4,378.2 | 4,619.6 |
% margin | 3.0 0.4% | 64.4 6.5% | 91.2 7.6% | 121.5 8.9% | 191.9 11.5% | 283.6 13.1% | 385.1 12.0% | 50.0 1.4% | 228.3 5.2% | 402.6 7.3% | 305.8 4.5% | 379.8 4.3% | 838.7 7.2% | 1,605.2 10.2% | 2,604.3 12.9% | 4,585.3 18.3% | 6,194.5 20.9% | 5,632.8 17.8% | 6,954.0 20.6% | 10,417.6 26.7% |
| Interest Income | 0.0 | 0.0 | 0.0 | 12.5 | 6.7 | 3.7 | 3.5 | 0.5 | 0.0 | 0.0 | 0.0 | 30.8 | 0.0 | 41.7 | 84.0 | 725.9 | 411.2 | 337.3 | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 | 20.3 | 2.5 | 6.5 | 19.6 | 20.0 | 20.0 | 32.1 | 53.3 | 163.9 | 150.1 | 353.4 | 420.5 | 626.0 | 1,385.9 | 765.6 | 706.2 | 748.6 | 718.7 |
| Pre-tax Income | 8.3 | 80.3 | 111.5 | 131.5 | 192.2 | 267.7 | 368.5 | 30.5 | 171.1 | 349.4 | 141.9 | 260.5 | 485.3 | 1,226.5 | 2,062.2 | 3,199.3 | 5,840.1 | 5,263.9 | 6,205.4 | 9,965.7 |
% effective tax rate | (33.7) (404.2%) | 31.2 38.9% | 44.5 40.0% | 48.5 36.9% | 76.3 39.7% | 106.8 39.9% | 136.9 37.1% | 13.3 43.7% | 58.7 34.3% | 82.6 23.6% | 19.2 13.6% | 73.8 28.3% | (73.6) (15.2%) | 15.2 1.2% | 195.3 9.5% | 438.0 13.7% | 723.9 12.4% | 772.0 14.7% | 797.4 12.9% | 1,254.0 12.6% |
% margin | 42.0 6.2% | 49.1 4.9% | 67.0 5.6% | 83.0 6.1% | 115.9 6.9% | 160.9 7.4% | 226.1 7.1% | 17.2 0.5% | 112.4 2.6% | 266.8 4.8% | 122.6 1.8% | 186.7 2.1% | 558.9 4.8% | 1,211.2 7.7% | 1,866.9 9.3% | 2,761.4 11.0% | 5,116.2 17.2% | 4,491.9 14.2% | 5,408.0 16.0% | 8,711.6 22.3% |
| EPS | 0.11 | 0.11 | 0.14 | 0.19 | 0.29 | 0.44 | 0.63 | 0.04 | 0.28 | 0.63 | 0.29 | 0.44 | 1.29 | 2.78 | 4.26 | 6.26 | 11.55 | 10.10 | 12.25 | 20.28 |
| Diluted EPS | 0.09 | 0.10 | 0.14 | 0.19 | 0.28 | 0.42 | 0.61 | 0.04 | 0.26 | 0.62 | 0.28 | 0.43 | 1.25 | 2.68 | 4.13 | 6.08 | 11.24 | 9.95 | 12.03 | 19.83 |
% margin | 110.0 16.1% | 221.6 22.2% | 91.2 7.6% | 376.2 27.6% | 456.2 27.3% | 626.0 28.9% | 1,219.2 38.0% | 1,752.5 48.6% | 2,470.0 56.5% | 3,184.4 57.9% | 3,852.9 56.8% | 5,335.6 60.4% | 838.7 7.2% | 9,303.4 58.9% | 12,008.1 59.6% | 15,507.9 62.0% | 19,044.5 64.1% | 20,333.0 64.3% | 21,508.4 63.8% | 24,877.4 63.8% |
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FAQ
1) What is Netflix, Inc.'s Rule of 40 (EBIT margin)?
As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 42.3%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for Netflix, Inc. have been 32.7% over the past three years, and 37.5% over the past five years.
2) Is Netflix, Inc.'s Rule of 40 (EBIT margin) Good?
As of today, Netflix, Inc.'s Rule of 40 (EBIT margin) is 42.3%, which is higher than industry median of 3.9%. It indicates that Netflix, Inc.'s Rule of 40 (EBIT margin) is Good.