Stock Research Report for NFLX as of 9/8/11 - Chaikin Power Tools

Page 1

Netflix Inc (NFLX)

Price: $215.88

Industry: Nonfood Retail-Wholesale Chaikin Power Gauge Report | Generated: Thu Sep 08 17:08 EDT 2011 NFLX Netflix Inc

$215.88

Power Gauge Rating

NFLX - Very Bearish TM

The Chaikin Power Gauge Rating for NFLX is very bearish due to very poor financial metrics, very bearish price/volume activity and negative expert opinions. The rating also reflects very strong earnings performance.

Financial Metrics

NFLX's financial metrics are very poor due to a high price to book value ratio and high price to sales ratio.

Earnings Performance

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Neutral NFLX Netflix Inc

September 07, 2011

TM

Chaikin Sentiment Gauge for NFLX is neutral. Stories concerning NFLX have a balanced or neutral sentiment.

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Very Bearish

LT Debt/Equity Ratio

NFLX's financial metrics are very poor. The company may be overvalued and has relatively low revenue per share.

Price to Book Value

The rank is based on a high price to book value ratio, high return on equity, high price to sales ratio and relatively low cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

Current Ratio

1.33

Price/Book

33.94

Return on Invest

42.1%

LT Debt/Equity

0.81

Price/Sales

5.25

Return on Equity

78.2%

Earnings Performance

TTM

Ratio

TTM

Earnings Performance Rating

Very Bullish

Earnings Growth

NFLX's earnings performance has been very strong. The company has a history of strong earnings growth and has a stable 5 year earnings trend.

Earnings Surprise

The rank is based on high earnings growth over the past 3-5 years, better than expected earnings in recent quarters, an upward trend in earnings this year, a relatively high projected P/E ratio and consistent earnings over the past 5 years.

Earnings Trend

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

12/06

12/07

12/08

12/09

12/10

996.66

786.17

1,364.66

1,670.27

2,162.62

44.86%

-21.12%

73.58%

22.39%

29.48%

$0.78

$1.00

$1.36

$2.05

$3.06

0.00%

28.21%

36.00%

50.74%

49.27%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.73

$1.01

+0.28

Quarterly EPS Yearly EPS Factor

$3.06

$4.64

+1.58

Actual EPS Growth

Est EPS Growth

Change

29.84%

31.25%

+1.41

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$1.11

$1.26

$0.15

1 Qtr Ago

$1.07

$1.11

$0.04

13.51

12/09

$0.38

$0.56

$0.54

$0.58

$2.06

3.74

12/10

$0.61

$0.83

$0.73

$0.90

$3.07

2 Qtr Ago

$0.71

$0.87

3 Qtr Ago

$0.72

$0.70

$0.16

22.54

12/11

$1.14

$1.30

-

-

-

$-0.02

-2.78

Fiscal Year End Month is December.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Very Bearish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for NFLX is very bearish. NFLX is trading on lower volume than its 90 day average volume and has a declining price trend.

Price Trend

The rank for NFLX is based on its price strength versus the market, positive Chaikin money flow, a negative Chaikin price trend, a negative Chaikin price trend ROC and a decreasing volume trend.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether NFLX is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Factor

Value

Volume Activity

Factor

Value

Factor

Value

52 Week High

298.73

% Change Price - 4 Weeks

-7.06%

Average Volume 20 Days

3,811,420

52 Week Low

138.48

% Change Price - 24 Weeks

-5.70%

Average Volume 90 Days

4,418,324

% Change YTD Rel S&P 500

29.94%

% Change Price - 4 Wks Rel to S&P

-13.10%

% Change Price - 24 Wks Rel to S&P

Expert Opinions

Chaikin Money Flow Persistency

79%

2.08%

Expert Opinions

Bearish

Earnings Estimate Revisions

Expert opinions about NFLX are negative. Short interest in NFLX is high and insiders are not net buyers of NFLX's stock.

Short Interest

Insider Activity

The rank for NFLX is based on analysts revising earnings estimates upward, a high short interest ratio, insiders not purchasing significant amounts of stock and optimistic analyst opinions.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

1.01 1.21 Current

Current FY

4.64

Analyst Recommendations

7 Days Ago % Change 1.01 1.21

0.00% 0.00%

30 Days Ago % Change 4.67

-0.03

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Hold 0.00

Mean 5 Weeks Ago

Hold

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

0

0

1

Curr Yr

0

0

1

1

Next Qtr

0

0

0

2

Next Yr

1

0

1

1

Hold

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for NFLX

NFLX's Competitors in Nonfood Retail-Wholesale Company

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

NFLX

29.84%

31.25%

8.04%

1.49

54.82

2,163

OWW

-3.75%

23.00%

-8.47%

3.83

52.80

757

-10.50%

27.00%

9.07%

1.06

43.60

1,637

PCLN

26.38%

22.60%

19.75%

1.11

34.58

3,085

AMZN

32.26%

25.67%

2.58%

4.44

98.17

34,204

OSTK

6.71%

20.00%

0.30%

4.74

94.73

1,090

EBAY

15.61%

11.43%

17.42%

1.55

18.59

9,156

IACI

Power Gauge

Time Warner shares rise after Barclays upgrade - Sep 7, 2011 Netflix unveils Latin America service in Brazil Sep 5, 2011 Netflix unveils Latin America service in Brazil Sep 5, 2011 Netflix Unveils "Just for Kids" Experience - Aug 16, 2011 Viacom fiscal 3Q earnings grow 37 percent Aug 5, 2011

Company Details

Company Profile

NETFLIX INC 100 WINCHESTER CIRCLE LOS GATOS, CA 95032-7606 USA Phone: 408-540-3700 Fax: 408-540-3737 Website: http://http://www.netflix.com Full Time Employees: 2,180 Sector: Retail/Wholesale

Netflix Inc. is the largest online movie rental subscription service in the United States providing subscribers access to a comprehensive library of more than 18,000 movie, television and other filmed entertainment titles. The standard subscription plan allows subscribers to have three titles out at the same time with no due dates, late fees or shipping charges for a monthly fee.

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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