008_넷플릭스|Netflix|网飞_2 (영어|English|英语)

Category	Description
Ticker	NFLX
Company	Netflix, Inc.
Sector	Communication Services
Industry	Entertainment
Country	USA
Market Cap	237.46B
Volume	2,762,628
Dividend%	N/A
Website	www.netflix.com

Company Introduction

Netflix was founded on August 29, 1997 by Marc Randolph and Wilmot Reed Hastings Jr. and is headquartered in Los Gatos, California. Netflix is a combination of the Internet's Net and the movie Flicks.

Netflix is a streaming entertainment service company and offers TV series, documentaries and feature films in a variety of genres and languages. The company has business areas such as domestic streaming, international streaming and domestic DVD sectors.

Domestic/International Streaming Segment: The streaming service first came out in 2007 and the domestic streaming segment derives revenue from monthly membership fees of streaming content to US members. The International Streaming segment, created since 2011, includes membership fees outside the United States. It provides its members the ability to receive streaming content through any host connected to the Internet, including TVs, digital video players, TV set-top boxes and mobile devices, and has approximately 204 million paying members in 190 countries.

Domestic DVD segment: We offer a subscription service that sends DVDs by mail to domestic customers. Although DVD customers are declining, more than 2 million members in the United States subscribe to the company's existing DVD-by-mail service.

Investment Point

Stable subscription service revenue: Netflix ranks first among the world's streaming service providers and has the highest number of subscribers with 204 million subscribers as of February 2021.

The number of Netflix subscribers has steadily increased at an average annual rate of 23% over the past five years, reaching 240 million by the end of 2020, and the number of new subscribers continues to increase. As a result, subscription fees are increasing, contributing to qualitative growth.

 

In the past, the service was only provided in the United States and Canada, but now it has expanded to 190 countries around the world, and the subscription fee is set according to the income level of each country. In the future, if it has enough subscribers, a strategy to increase its margin by increasing its subscription fee will also help it increase profits.

Past Revenue Trend

Netflix is showing stable growth through streaming service subscribers, and has grown highly by an average of 30% over the past five years.

l  Trailing 12 Months: Sum of the previous 12 months

l  Quarterly: quarterly results

l  YoY Quarterly Growth: Year-on-year growth rate

Past EPS Trend

EPS shows a similar pattern to sales and has grown at an average annual rate of 96% over the past five years.

l  EPS: Earning Per Share

Future Sales and EPS trends

It has maintained high growth at 2020 without being affected by difficult circumstances. And sales are expected to grow at a CAGR of 16% over the next three years, profit at 40%, and EPS at 40%. In particular, profit and EPS will have explosive growth.

Stock price trend and target price

The average target price of Wall Street analysts is 606.39$ (highest price 720$, lowest price  342$), showing 13.14% upside potential. Moreover, 36 of 26 analysts give a strong buy opinion. (As of July 11, 21)

For hedge funds, the number of shares held decreased by 704.5k from the previous quarter.

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