NFLX  Netflix Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Consumer Electronics/Video Chains

Market Cap.

61.50B

Very Poor Cash Return on Invested Capital over the past 5 years

NFLX has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NFLX has lost $10.21 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -66.97M -22.24M -128.03M -840.69M -1.58B
divided by
Invested Capital 1.54B 2.06B 2.79B 4.36B 7.27B
Cash ROIC -4.34% -1.08% -4.60% -19.27% -21.77%

Poor Return on Equity over the past 5 years

NFLX has shown an inability to deliver strong results for shareholders. This could be due to poor management, NFLX operating in a highly competitive industry, or having a weak business in general.

NFLX has only generated $7.52 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 17.15M 112.40M 266.80M 122.64M 186.68M
divided by
Stockholders' Equity 744.67M 1.33B 1.86B 2.22B 2.68B
Return on Equity 2.30% 8.43% 14.36% 5.52% 6.97%

Mediocre Business Performance over the past 10 years

NFLX isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

NFLX has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 247.02M 76.34M 279.13M 242.56M 182.88M -66.97M -22.24M -128.03M -840.69M -1.58B