NETNEUTRAL

NET FCF Yield Analysis

0.3%

Higher than 21% of Technology sector peers

Updated 304h ago·SEC filings & market data

Key Takeaway

Free cash flow yield measures the cash a company generates relative to its stock price, calculated as free cash flow divided by market capitalization.

Sector Performance

21th percentile

NET

0.3%

Sector Median

2.5%

Sector Avg

3.8%

Prior Period

0.5%(May 2026)

↓ Declining
📊

Deep Analysis

Free cash flow yield measures the cash a company generates relative to its stock price, calculated as free cash flow divided by market capitalization.

At 0.3%, this figure is far below the sector median of 2.6% and places NET in the 20th percentile among technology peers, meaning it ranks lower than 80% of comparable companies. The metric shows no trend because year-over-year and quarter-over-quarter changes are not available, and only a single historical value exists—so no directional insight can be drawn. A yield this low combined with the absence of trend data suggests the stock offers very limited cash return relative to its price, pointing to elevated valuation risk with no recent improvement to offset it. This metric contradicts the overall NEUTRAL verdict because such a weak FCF yield typically signals that the market is pricing the company at a premium to its actual cash generation, which is a bearish valuation indicator.

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 2.5%, placing it in the 21th percentile.

Who are NET's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: SMAR (2.4%), ANSS (2.6%), AAPL (2.2%), AMBA (2.1%), MODN (2.0%).

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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NET

0.3%

Sector Median

2.5%

Sector Avg

3.8%

How NET's FCF Yield compares to sector peers.

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