SONEUTRAL

SO FCF Yield Analysis

-2.9%

Updated 33h ago·SEC filings & market data

Key Takeaway

A free cash flow yield of -2.7% means the company is generating negative free cash flow—what it spends on operations and capital needs exceeds what it brings in—relative to its market value.

Sector Performance

11th percentile

-2.9%

Sector Median

4.2%

Sector Avg

9.2%

Prior Period

-2.8%(Aug 2026)

↓ Declining

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Deep Analysis

A free cash flow yield of -2.7% means the company is generating negative free cash flow—what it spends on operations and capital needs exceeds what it brings in—relative to its market value.

This places it well below the sector median of 4.2%, ranking in the 11th percentile among peers, so most comparable companies convert market value into cash far more effectively. The year-over-year change is not available, but the quarter-over-quarter change is +3.6%, meaning the negative yield has become less severe (improved from the prior reading of -2.8%). A persistently negative yield combined with only a modest quarterly improvement suggests elevated cash-flow risk, though the trend is pointing in the right direction. This weak level relative to peers contradicts the case for a positive investment stance, yet the recent improvement provides some offset. Overall, the metric supports the NEUTRAL verdict rather than a bullish or bearish one, as the negative level is a concern but the latest direction is stabilizing.

Frequently Asked Questions

What does the FCF Yield tell investors about SO?

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.

Who are SO's closest peers by FCF Yield?

The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).

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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.