NFLX  Netflix Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Consumer Electronics/Video Chains

Market Cap.

59.80B

Highly Competitive Industry over the past 10 years

It's likely that NFLX is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely NFLX invests heavily in R&D and Sales, General & Administrative expenses.

Only $4.77 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 49.08M 66.95M 83.03M 115.86M 160.85M 226.13M 17.15M 112.40M 266.80M 122.64M
divided by
Revenue 996.66M 1.21B 1.36B 1.67B 2.16B 3.20B 3.61B 4.37B 5.50B 6.78B
Net Profit Margin 4.92% 5.55% 6.08% 6.94% 7.44% 7.06% 0.48% 2.57% 4.85% 1.81%

Inconsistent Gross Profit Margins over the past 10 years

NFLX has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$39.06 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 369.68M 419.17M 454.43M 591.00M 805.27M 2.95B 983.42M 1.29B 1.75B 2.19B
divided by
Revenue 996.66M 1.21B 1.36B 1.67B 2.16B 3.20B 3.61B 4.37B 5.50B 6.78B
Gross Margin 37.09% 34.78% 33.30% 35.38% 37.24% 91.92% 27.25% 29.52% 31.83% 32.27%

High Capital Intensity over the past 10 years

NFLX spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

159.82% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 197.45M 44.81M 207.70M 45.93M 33.84M 134.84M 89.73M 120.07M 144.52M 91.25M
divided by
Net Income 49.08M 66.95M 83.03M 115.86M 160.85M 226.13M 17.15M 112.40M 266.80M 122.64M
Capital Expenditure Ratio 402.28% 66.92% 250.16% 39.64% 21.04% 59.63% 523.16% 106.82% 54.17% 74.40%