ALK FCF Yield Analysis
Higher than 15% of Industrials sector peers
Updated 1659h ago·SEC filings & market data
Key Takeaway
Alaska Air Group’s free cash flow (FCF) yield of -5.8% means the company is consuming more cash than it generates relative to its market value — a negative yield indicates negative free cash flow.
Sector Performance
15th percentileALK
-5.8%
Sector Median
1.7%
Sector Avg
-31.1%
Deep Analysis
Alaska Air Group’s free cash flow (FCF) yield of -5.8% means the company is consuming more cash than it generates relative to its market value — a negative yield indicates negative free cash flow.
This is well below the Industrials sector median of 2.1%, placing the stock at the 20th percentile among peers. Trend direction, year-over-year change, and quarter-over-quarter change are all listed as N/A because only a single historical value (-5.8%) is available, offering no trajectory to assess. The combination of a deeply negative FCF yield and no trend data signals elevated cash-burn risk, as the company currently lacks the financial flexibility that positive free cash flow provides. This metric contradicts the overall NEUTRAL verdict — a negative FCF yield below the sector median typically points to weakness, not a balanced risk profile. Investors should seek additional context on why cash flow is negative before considering the stock.
Frequently Asked Questions
What does the FCF Yield tell investors about ALK?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
How does ALK's FCF Yield compare to its sector?
ALK's FCF Yield of -5.8% compares to a Industrials sector median of 1.7%, placing it in the 15th percentile.
Who are ALK's closest peers by FCF Yield?
The closest Industrials peers by FCF Yield include: MMM (1.7%), PWR (1.7%), SAIA (0.2%), AXON (0.2%), BE (0.1%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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-5.8%
Sector Median
1.7%
Sector Avg
-31.1%
How ALK's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.