SITMCAUTIOUS

SITM FCF Yield Analysis

0.2%

Higher than 15% of Technology sector peers

Updated 11h ago·SEC filings & market data

Key Takeaway

A 0.2% FCF yield means that for every dollar of stock price, the company generates only 0.2 cents in free cash flow (cash from operations minus capital spending) — a very low return on investment.

Sector Performance

15th percentile

SITM

0.2%

Sector Median

2.5%

Sector Avg

3.9%

Prior Period

0.4%(May 2026)

↓ Declining

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Deep Analysis

A 0.2% FCF yield means that for every dollar of stock price, the company generates only 0.2 cents in free cash flow (cash from operations minus capital spending) — a very low return on investment.

This places SITM far below its Technology sector median of 2.7%, ranking in the 13th percentile among sector peers, indicating it is one of the weakest cash-flow generators in its group. The metric’s year-over-year change is not available (N/A), but the quarter-over-quarter change shows a 50.0% decline from 0.4% to 0.2% in the most recent period. The combination of an already-low FCF yield and a sharp quarterly drop heightens the risk that the company may struggle to convert earnings into cash, making its valuation harder to justify. This directly supports the overall CAUTIOUS verdict: the weak and deteriorating cash flow profile contradicts any optimistic growth narrative for the stock.

Frequently Asked Questions

What does the FCF Yield tell investors about SITM?

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 SITM's FCF Yield compare to its sector?

SITM's FCF Yield of 0.2% compares to a Technology sector median of 2.5%, placing it in the 15th percentile.

Who are SITM'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%).

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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.