# Netflix CDR (CAD Hedged) (NFLX.TO) fundamentals

Data as of 2026-11-01. TSX, Canada. Sector: Communication Services / Entertainment. Price C$23.20, market value C$3.37 trillion.

## Valuation
- **P/E (trailing): 18.1×** (5-yr avg 492.6×, 3-yr avg 492.6×). Netflix CDR (CAD Hedged) trades at 18.1× trailing earnings, well below its own five-year average of 492.6×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×.
- **Price / sales: 67.8×**. Each dollar of revenue is priced at 67.8×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 2316.4×**. The shares trade at 2316.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 92.6×**. Enterprise value is 92.6× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 0.3%** (5-yr avg 0.2%). Free cash flow equals 0.3% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 5.5%**. The inverse of the P/E: 5.5% of the price is earned each year.

## Profitability
- **Gross margin: 50.7%**. Netflix CDR (CAD Hedged) keeps 50.7% of revenue after the direct cost of what it sells.
- **Operating margin: 31.3%**. 31.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 24.3%**. 24.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 41.3%**. 41.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 40.6%**. Return on all capital, debt included, is 40.6%: comfortably above what that capital costs.
- **Return on assets: 26.6%**. Each dollar of assets produces 26.6% of profit.

## Growth
- **Revenue growth (1 yr): 15.9%** (3-yr 12.6%/yr). Revenue grew 15.9% over the last year.
- **EPS growth (1 yr): 27.6%** (3-yr 36.5%/yr). Earnings per share rose 27.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 80.1%/yr**. Free cash flow has compounded at 80.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.54**. Debt is 0.54 times equity, moderate leverage.
- **Net debt / EBITDA: 0.1×**. It would take 0.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 18.2×**. Operating profit covers interest 18.2× over, a safe margin.
- **Current ratio: 1.19** (quick 1.19). Current assets cover the next year's liabilities 1.19 times.
- **Altman Z-score: 72.13**. A Z-score of 72.13 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend: none**. Netflix CDR (CAD Hedged) does not currently pay a dividend, but it returned 0.4% of its market value through buybacks over the last year.

## Price and momentum
- **From 52-week high: -43.7%** (1.1% above the low). Trading 44% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 31**. An RSI of 31 is neutral.
- **Beta (1 yr): 0.33** (volatility 37%). Beta of 0.33 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NFLX.TO · Page: https://foliofundamentals.com/stocks/nflx.to

Not investment advice.