FCF Yield
Higher than 41% of Healthcare sector peers
Updated 79h ago
Sector Performance
41th percentileBAX
2.9%
Sector Median
3.4%
Sector Avg
-13.0%
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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2.9%
Sector Median
3.4%
Sector Avg
-13.0%
How BAX's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.