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NetFlix Inc. (NASDAQ:NFLX)


Symbol Exchange NASDAQ Current Price 52 Week High/ Low Shares Outstanding Market Cap (in $) P/E Ratio

NFLX 173.00 184.74 - 48.52 52.26M 9.04B 65.25

Recommendation:

Key Developments:

Ebeling Heffernan Strong Buy Short Term. Price target of $220 short term.

Level 3 Communications, Inc. (LVLT) confirmed that it's been chosen as a primary content-delivery network for Netflix, Inc. (NFLX).

Major takeover target of companies that wish to compete with Apple. Google, Microsoft and Sony are the possible buyers. A sale would be made at between $250 and $300 per share.

Netflix continues to win new subscribers despite competing with a host of other online and offline video services offered by players like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG), Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC). Netflix’s subscriber acquisition costs (SAC), a measure of marketing costs per new subscriber acquired, continue to drop.


Netflix, Inc., incorporated on August 29, 1997, is a subscription service streaming movies and television episodes over the Internet and sending digital versatile discs (DVDs) by mail to more than 12 million subscribers. The Company’s subscribers can watch unlimited movies and television episodes streamed to their televisions and computers, and can receive DVDs delivered to their homes. The Company offers a variety of subscription plans, with no due dates, no late fees, no shipping fees and no pay-per-view fees. Subscribers can select from a library of titles that can be watched and a range of titles on DVD. On average, approximately two million discs are shipped daily from the Company’s distribution centers across the United States. In September 2010, the Company launched Canadian service for streaming movies and television episodes over Internet. Subscribers can watch streaming content without commercial interruption on their personal computers and televisions. The viewing experience is enabled by Netflix controlled software that can run on a variety of consumer electronics devices (Netflix Ready Devices). These Netflix Ready Devices include Blu-ray disc players, Internet-connected televisions, digital video players and game consoles. Subscribers receive DVD’s by United States mail and return them to the Company at their convenience using its prepaid mailers. After a DVD has been returned, The Company mails the next available DVD in a subscriber’s queue. The Company offers programs, which encourage consumers to subscribe to its service and may include a free trial period. At the end of the free trial period, subscribers are automatically enrolled as paying subscribers, unless they cancel their subscription. All paying subscribers are billed monthly in advance. The Company obtains content through direct purchases, revenue sharing agreements and license agreements with studios, distributors and other suppliers. DVD content is obtained through direct purchases or revenue sharing agreements. Streaming content is licensed for a fixed fee for the term of the license agreement. The Company competes with Blockbuster, Movie Gallery, Redbox, Time Warner, Comcast, DIRECTV, Echostar, AT&T, Verizon, Best Buy, Wal-Mart, Amazon.com, Apple, Hulu.com and Google. Source : http://www.netflix.com/

INSTITUTIONAL HOLDERS % Shares Owned:

88.60%

of Holders:

429

Total Shares Held:

46,301,781

3 Mo. Net Change:

-5,577,330

# New Positions:

46

# Closed Positions:

23

# Increased Positions: 114 # Reduced Positions: 89 # Net Buyers:

25


GROWTH FOR NETFLIX INC.

PERFORMANCE FOR NETFLIX INC

1 Year

3 Years

5 Years

Period

% Actual

% vs. S&P 500

Rank In Industry

Industry Rank

Sales %

22.39

18.78

27.25

4 Week

14.40

10.58

98

6

EPS %

50.11

41.03

42.83

13 Week

39.85

25.02

99

28

Dividend %

--

--

--

26 Week

64.03

57.71

99

34

52 Week

202.86

171.62

99

28

YTD

221.06

193.77

99

26

Note: Units in Millions of US Dollars

Note: Rank is a percentile that ranges from 0 to 99, with 99 = best.


REVENUE Periods

2008

2009

2010

March

326.183

394.098

493.665

June

337.614

408.509

519.819

September

341.269

423.12

553.219

December

359.595

444.542

Periods

2008

2009

2010

March

0.2058

0.36836

0.58917

June

0.41623

0.5438

0.8011

September

0.32713

0.52023

0.70399

December

0.37691

0.5572

Note: Units in Millions of U.S. Dollars EARNINGS PER SHARE

Note: Units in U.S. Dollars # of Estimates

Mean

High

Low

1 Year Ago

SALES (in millions) Quarter Ending Dec-10

28

595.80

623.70

555.68

537.92

Quarter Ending Mar-11

17

665.37

703.00

612.14

495.70

Year Ending Dec-10

28

2,161.94

2,190.40

2,098.06

2,051.23

Year Ending Dec-11

29

2,874.69

3,103.95

2,590.75

2,412.78

Quarter Ending Dec-10

28

0.72

0.78

0.63

0.55

Quarter Ending Mar-11

17

0.88

1.00

0.78

0.48

Year Ending Dec-10

28

2.83

3.06

2.72

2.25

Year Ending Dec-11

29

3.82

4.71

3.17

2.70

LT Growth Rate (%)

14

26.56

49.00

15.00

17.12

EARNINGS (per share)

Sales and Earnings Figures in U.S. Dollars (USD)


DIVIDENDS Company

Industry

Sector

S&P 500

Dividend Yield

NA

1.75

1.79

1.63

Dividend Yield - 5 Year Avg.

0.00

0.96

1.26

2.49

Dividend 5 Year Growth Rate

--

7.65

8.70

-6.92

Payout Ratio(TTM)

0.00

22.88

30.85

37.91

Company

Industry

Sector

S&P 500

P/E Ratio (TTM)

66.71

21.57

27.98

18.11

P/E High - Last 5 Yrs.

70.36

1.63

0.97

19.92

P/E Low - Last 5 Yrs.

19.42

0.34

0.39

5.16

Beta

0.56

0.58

0.58

1.28

Price to Sales (TTM)

4.60

3.14

2.30

2.15

Price to Book (MRQ)

48.15

1.58

1.66

2.78

Price to Tangible Book (MRQ)

128.50

2.43

1.73

19.51

Price to Cash Flow (TTM)

20.60

15.43

15.15

10.56

Price to Free Cash Flow (TTM)

96.66

9.51

11.77

47.18

% Owned Institutions

--

--

--

--

VALUATION RATIOS


GROWTH RATES Company

Industry

Sector

S&P 500

Sales (MRQ) vs Qtr. 1 Yr. Ago

30.75

10.50

17.18

9.43

Sales (TTM) vs TTM 1 Yr. Ago

26.87

17.27

7.27

8.64

Sales - 5 Yr. Growth Rate

27.25

31.79

11.42

9.98

EPS (MRQ) vs Qtr. 1 Yr. Ago

35.32

20.52

833.28

6.14

EPS (TTM) vs TTM 1 Yr. Ago

46.55

--

--

--

EPS - 5 Yr. Growth Rate

42.83

49.60

8.36

6.94

Capital Spending - 5 Yr. Growth Rate

15.61

31.38

9.89

4.87

Company

Industry

Sector

S&P 500

Quick Ratio (MRQ)

--

0.78

0.71

0.62

Current Ratio (MRQ)

1.58

0.97

1.00

0.93

LT Debt to Equity (MRQ)

122.23

12.00

24.41

111.71

Total Debt to Equity (MRQ)

123.29

22.16

33.41

163.37

Interest Coverage (TTM)

--

0.13

0.55

18.71

FINANCIAL STRENGTH


PROFITABILITY RATIOS Company

Industry

Sector

S&P 500

Gross Margin (TTM)

38.24

55.94

32.61

32.59

Gross Margin - 5 Yr. Avg.

34.69

58.64

35.23

29.09

EBITD Margin (TTM)

27.97

--

--

--

EBITD - 5 Yr. Avg

24.74

22.60

13.29

18.51

Operating Margin (TTM)

12.85

16.13

8.06

--

Operating Margin - 5 Yr. Avg.

8.00

16.15

10.01

16.39

Pre-Tax Margin (TTM)

12.16

16.22

8.14

14.91

Pre-Tax Margin - 5 Yr. Avg.

8.83

16.29

10.12

15.99

Net Profit Margin (TTM)

7.19

10.78

5.89

11.08

Net Profit Margin - 5 Yr. Avg.

6.02

10.13

6.93

11.75

Effective Tax Rate (TTM)

40.82

27.08

22.92

51.43

Effecitve Tax Rate - 5 Yr. Avg.

31.84

46.35

28.78

25.42


EFFICIENCY Company

Industry

Sector

S&P 500

Revenue/Employee (TTM)

1,069,811

20,002,537

26,345,841

670,458

Net Income/Employee (TTM)

76,953

969,352

859,334

84,190

Receivable Turnover (TTM)

--

12.65

19.59

9.37

Inventory Turnover (TTM)

--

44.62

5.47

6.64

Asset Turnover (TTM)

3.19

0.72

0.61

0.54

Company

Industry

Sector

S&P 500

Return on Assets (TTM)

22.92

3.87

2.97

5.73

Return on Assets - 5 Yr. Avg.

13.04

7.52

7.94

5.72

Return on Investment (TTM)

38.75

6.42

4.40

7.36

Return on Investment - 5 Yr. Avg.

19.61

10.21

13.54

7.38

Return on Equity (TTM)

68.21

8.53

7.89

17.12

Return on Equity - 5 Yr. Avg.

22.34

14.83

17.51

9.20

MANAGEMENT EFFECTIVENESS


Chutinush Taksinapinunt holds a Bachelor of Business Administration degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced Market Maker and Portfolio Manager having worked with some of Thailand’s largest Securities Companies and Financial Insitutions. Corporate Account Executive Heffernan Capital Management

Price Estimate by Shayne Heffernan PhD Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com

Bangkok Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND Tel: +66 2 126 8000 Fax: +66 2 126 8080 New York 347 5th Avenue, Suite 1402-508 Ny, NY 10016

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NetFlix Inc NASDAQ:NFLX Research, Analysts Report  

NetFlix Inc NASDAQ:NFLX Research, Analysts Report NetFlix Inc. NASDAQ:NFLX has been rated a strong buy by Chutinush Taksinapinunt of Ebeli...

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