NFLX  Netflix Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Consumer Electronics/Video Chains

Market Cap.

59.80B

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 $2.36 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 182.88M -66.97M -22.24M -128.03M -840.69M
divided by
Invested Capital 1.05B 1.54B 2.06B 2.79B 4.36B
Cash ROIC 17.48% -4.34% -1.08% -4.60% -19.27%

Inconsistent Return on Equity over the past 5 years

NFLX has generated adequate returns with capital that shareholders have invested. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

NFLX has generated $13.16 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 226.13M 17.15M 112.40M 266.80M 122.64M
divided by
Stockholders' Equity 642.81M 744.67M 1.33B 1.86B 2.22B
Return on Equity 35.18% 2.30% 8.43% 14.36% 5.52%

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
2006200720082009201020112012201320142015
Free Cash Flow 50.42M 247.02M 76.34M 279.13M 242.56M 182.88M -66.97M -22.24M -128.03M -840.69M