MODNCAUTIOUS

MODN FCF Yield Analysis

2.0%

Higher than 39% of Technology sector peers

Updated 1284h ago·SEC filings & market data

Key Takeaway

Model N’s free cash flow yield of 2.0% means that for every $100 of its stock price, the company generates about $2.00 in free cash flow—money left after operating and capital expenses.

Sector Performance

39th percentile

MODN

2.0%

Sector Median

2.6%

Sector Avg

0.4%

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Deep Analysis

Model N’s free cash flow yield of 2.0% means that for every $100 of its stock price, the company generates about $2.00 in free cash flow—money left after operating and capital expenses.

This yield sits below the Technology sector median of 3.3%, placing Model N in the 29th percentile among its sector peers, indicating a lower cash return relative to the broader group. The metric currently lacks a year-over-year change, quarter-over-quarter change, and trend over the last eight quarters, with only a single historical value of 2.0% reported. The combination of a below-median yield with no observable trend suggests limited immediate opportunity from free cash flow generation, but also no deterioration to point to. This aligns with the overall CAUTIOUS verdict, as the low yield relative to peers supports a view that the stock’s valuation is not supported by strong cash generation.

Frequently Asked Questions

What does the FCF Yield tell investors about MODN?

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 MODN's FCF Yield compare to its sector?

MODN's FCF Yield of 2.0% compares to a Technology sector median of 2.6%, placing it in the 39th percentile.

Who are MODN's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: APH (2.7%), AFRM (2.7%), ASML (3.0%), AMAT (3.1%), ASAN (3.6%).

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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.