FCF Yield

NIO’s current FCF Yield of -24.9% means the company is burning cash: free cash flow (the cash left after expenses and investments) is negative, so the yield—free cash flow per share divided by share price—is also negative.

This places NIO far below the sector median of 4.2%, ranking in the 2nd percentile among peers, indicating it generates far less free cash flow relative to its market value than the typical company in its space. The metric has been decreasing over the last eight quarters; year-over-year change is not available, but quarter-over-quarter it improved by +3.1% (moving from -25.7% to -24.9%), though the historical values show a steep drop from -3.8% four quarters ago to the current deeply negative levels. Combining a deeply negative level with a long-term downward trend signals that NIO continues to consume cash at a pace that raises the risk of needing external financing or diluting shareholders. This metric directly supports the overall CAUTIOUS verdict, as a persistent negative FCF Yield is a clear warning sign for profitability and financial health.

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