ARE FCF Yield Analysis
Higher than 100% of Real Estate sector peers
Updated 3009h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 17.0% means that for every dollar invested in Alexandria Real Estate Equities, the company generates 17 cents in free cash flow (the cash left after operating expenses and capital spending) relative to its stock price.
Sector Performance
100th percentileARE
17.0%
Sector Median
5.6%
Sector Avg
7.8%
Deep Analysis
The current FCF Yield of 17.0% means that for every dollar invested in Alexandria Real Estate Equities, the company generates 17 cents in free cash flow (the cash left after operating expenses and capital spending) relative to its stock price.
This yield is far above the Real Estate sector median of 5.1%, placing the stock in the 100th percentile among peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A very high yield that is completely flat implies a mature, predictable cash flow stream but also signals a lack of growth catalysts or reinvestment opportunities. This combination of extreme level plus zero trend suggests a low-risk income profile but limited upside potential, which directly supports the overall CAUTIOUS verdict — the stock offers strong cash returns but warrants caution due to stagnant performance and no signs of improvement.
Frequently Asked Questions
What does the FCF Yield tell investors about ARE?
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 ARE's FCF Yield compare to its sector?
ARE's FCF Yield of 17.0% compares to a Real Estate sector median of 5.6%, placing it in the 100th percentile.
Who are ARE's closest peers by FCF Yield?
The closest Real Estate peers by FCF Yield include: REG (5.6%), AVB (5.5%), AMH (6.3%), AMT (4.6%).
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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17.0%
Sector Median
5.6%
Sector Avg
7.8%
How ARE's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.