BAXCAUTIOUS

FCF Yield

2.9%

Higher than 41% of Healthcare sector peers

Updated 79h ago

Sector Performance

41th percentile

BAX

2.9%

Sector Median

3.4%

Sector Avg

-13.0%

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Deep Analysis

A Free Cash Flow (FCF) Yield of 2.9% means that for every $100 you invest in Baxter's stock, the company generates about $2.90 in cash left over after covering operating expenses and capital investments.

This is below the healthcare sector median of 3.4%, placing Baxter in the 39th percentile among its peers. The metric has been decreasing over the last eight quarters, though the year-over-year change is not available; the most recent quarter-over-quarter change shows a +3.6% improvement to 2.9% from 2.8%. Despite that small sequential uptick, the longer-term downward trend suggests that Baxter's cash generation relative to its market value has been weakening. For an investor, the below-average yield combined with a declining trend indicates elevated risk, as the company may be struggling to convert its operations into shareholder cash. This directly supports the overall CAUTIOUS verdict: the low percentile rank and diminishing FCF Yield reinforce a watchful stance.

Frequently Asked Questions

What does the FCF Yield tell investors about BAX?

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 BAX's FCF Yield compare to its sector?

BAX's FCF Yield of 2.9% compares to a Healthcare sector median of 3.4%, placing it in the 41th percentile.

Who are BAX's closest peers by FCF Yield?

The closest Healthcare peers by FCF Yield include: ABT (3.4%), CAH (3.4%), AZN (3.0%), A (2.8%), RVTY (4.1%).

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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BAX

2.9%

Sector Median

3.4%

Sector Avg

-13.0%

How BAX's FCF Yield compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.