FCF Yield
Updated 200h ago
Sector Performance
20th percentileWAT
1.5%
Sector Median
4.2%
Sector Avg
7.7%
Deep Analysis
The current free cash flow (FCF) yield of 1.5% means that for every $100 of market value, the company generates $1.50 in cash after covering capital expenditures — a measure of cash return to investors.
This sits well below the sector median of 4.2%, placing WAT in the 20th percentile among peers, indicating a lower cash generation relative to its market price. The metric's year-over-year change is not available, but the quarter-over-quarter decline of -37.5% (from 2.4% to 1.5%) signals a sharp recent drop in cash flow efficiency. A low yield combined with a declining trend points to increased investment risk, as the company is producing less cash per dollar of valuation compared to both its past and its industry. This metric contradicts the overall NEUTRAL verdict, because a weak FCF yield and negative momentum typically warrant a more cautious view.
Frequently Asked Questions
What does the FCF Yield tell investors about WAT?
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 WAT's closest peers by FCF Yield?
The closest peers by FCF Yield include: FMC (-12.9%), NCLH (-13.0%), XEL (-13.6%), SG (-13.6%), GS (-14.0%).
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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1.5%
Sector Median
4.2%
Sector Avg
7.7%
How WAT's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.