ORCLNEUTRAL

FCF Yield

-5.5%

Higher than 0% of TECHNOLOGY sector peers

Updated 8h ago

Sector Performance

0th percentile

ORCL

-5.5%

Sector Median

1.1%

Sector Avg

1.0%

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Deep Analysis

A Free Cash Flow (FCF) Yield of -5.5% means that for every dollar of the stock’s market value, the company is generating negative free cash—essentially burning cash rather than producing surplus that could fund dividends or buybacks.

This places ORCL at the 0th percentile among its TECHNOLOGY sector peers, far below the sector median of 1.1%. The FCF Yield has been decreasing over the last eight quarters; specifically, it worsened by 1.9 percentage points quarter-over-quarter (from -3.6% to -5.5%), though a year-over-year comparison is not available. The combination of a deeply negative level and a declining trend signals elevated financial risk, as the company’s cash generation is deteriorating relative to its valuation. This metric contradicts the overall NEUTRAL verdict, as such a poor and worsening FCF Yield typically points to a bearish outlook rather than a balanced one.

Frequently Asked Questions

What does the FCF Yield tell investors about ORCL?

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 ORCL's FCF Yield compare to its sector?

ORCL's FCF Yield of -5.5% compares to a TECHNOLOGY sector median of 1.1%, placing it in the 0th percentile.

Who are ORCL's closest peers by FCF Yield?

The closest TECHNOLOGY peers by FCF Yield include: LRCX (1.1%), TXN (1.0%), MRVL (0.6%), MSFT (2.5%), CSCO (3.0%).

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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ORCL

-5.5%

Sector Median

1.1%

Sector Avg

1.0%

How ORCL's FCF Yield compares to sector peers.

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