RARE FCF Yield Analysis
Updated 830h ago·SEC filings & market data
Key Takeaway
Rare's current Free Cash Flow (FCF) Yield of -18.4% means the company is generating negative free cash flow relative to its market value — essentially, it is burning cash rather than producing cash for investors.
Sector Performance
2th percentileRARE
-32.3%
Sector Median
4.1%
Sector Avg
9.2%
Prior Period
-19.3%(Aug 2026)
Deep Analysis
Rare's current Free Cash Flow (FCF) Yield of -18.4% means the company is generating negative free cash flow relative to its market value — essentially, it is burning cash rather than producing cash for investors.
This stands in stark contrast to its sector, where the median FCF Yield is a positive 4.1%, placing Rare in the 3rd percentile among peers (worse than 97% of them). Although the metric has been trending upward over the last eight quarters — meaning losses are narrowing on a long-term basis — the most recent quarter-over-quarter change shows a decline of -8.9 percentage points, and year-over-year data is not available for comparison. The combination of a deeply negative FCF Yield with a recent quarterly worsening suggests elevated cash-burn risk, while the longer-term improvement offers a faint possibility of eventual recovery. This metric directly supports the CAUTIOUS overall verdict, as the company's cash generation struggles and weak peer comparison reinforce a watchful stance.
Frequently Asked Questions
What does the FCF Yield tell investors about RARE?
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.
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.
Master RARE's Valuation
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-32.3%
Sector Median
4.1%
Sector Avg
9.2%
How RARE's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.