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Quality score · NFLX · Communication Services

Is Netflix a quality business?

Sells streaming video subscriptions worldwide, now alongside advertising-supported tiers.

7.0/ 10
High quality
as of September 11, 2026
Profitability
9.3 Strong
Solvency
7.9 Strong
Growth
4.5 Average
Efficiency
7.5 Strong
Predictability
5.6 Average
Strongest pillar: Profitability · Weakest: Growth

Netflix (NFLX) scores 7.0 out of 10 as of September 11, 2026, computed from its reported financial statements. That reads as high quality. The reading rests on profitability, and growth is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Why quality is the interesting question for Netflix

Netflix spent a decade pairing strong growth with negative free cash flow, and the pillars that lagged then are the ones improving fastest now. Content is capitalised and amortised, so reported profit and cash generation can diverge sharply, which is precisely what a multi-metric reading exists to reconcile. Predictability, measured over a long window, still carries the memory of that earlier shape.

What each pillar measures

Profitability

9.3 / 10

How much profit the company generates from its capital and sales.

Solvency

7.9 / 10

The company’s ability to service debt and meet its obligations.

Growth

4.5 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

7.5 / 10

How well assets and earnings convert into cash and output.

Predictability

5.6 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Netflix a quality business?

On this reading Netflix scores 7.0 out of 10, which reads as high quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.

What does the NFLX quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

It was last recomputed on September 11, 2026. The score moves with the financial statements, i.e. quarterly, so this page changes when a new filing changes the answer rather than on a schedule. Live figures for NFLX are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

Other companies scored

GOOGL · AlphabetMETA · Meta PlatformsTMUS · T-Mobile USAAPL · AppleAll quality scoresCommunication Services screener

Score any company, not just these.

Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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