NET FCF Yield Analysis
Higher than 18% of Technology sector peers
Updated 23h ago·SEC filings & market data
Key Takeaway
Cloudflare's current free cash flow (FCF) yield of 0.3% means the company generates only $0.30 in cash from operations per $100 of its stock price — a very low return for investors relative to the cash the business produces.
Sector Performance
18th percentileNET
0.3%
Sector Median
2.6%
Sector Avg
0.8%
Prior Period
0.5%(May 2026)
Deep Analysis
Cloudflare's current free cash flow (FCF) yield of 0.3% means the company generates only $0.30 in cash from operations per $100 of its stock price — a very low return for investors relative to the cash the business produces.
This places Cloudflare well below its technology sector peers, where the median FCF yield is 3.3%, and the stock sits at the 8th percentile among those peers. The trend data is limited: the year-over-year change is not available, but the quarter-over-quarter change shows a decline of 40.0%, dropping from 0.5% to 0.3%. The combination of a very low absolute FCF yield and a sharp quarterly decline points to elevated risk, as the company's cash generation relative to its market value is both weak and deteriorating. This metric supports the overall NEUTRAL verdict, because the low yield and negative trend reinforce a cautious stance without triggering a strong negative signal.
Frequently Asked Questions
What does the FCF Yield tell investors about NET?
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 NET's FCF Yield compare to its sector?
NET's FCF Yield of 0.3% compares to a Technology sector median of 2.6%, placing it in the 18th percentile.
Who are NET's closest peers by FCF Yield?
The closest Technology peers by FCF Yield include: APH (2.7%), ASML (3.0%), AMAT (3.1%), ASAN (3.6%), ADI (3.7%).
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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0.3%
Sector Median
2.6%
Sector Avg
0.8%
How NET's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.