WATNEUTRAL

WAT FCF Yield Analysis

1.3%

Updated 321h ago·SEC filings & market data

Key Takeaway

A free cash flow yield of 1.3% means the company generates only $1.30 in free cash flow for every $100 of its market value — a low return for investors compared to what other stocks offer.

Sector Performance

19th percentile

WAT

1.3%

Sector Median

4.2%

Sector Avg

9.2%

Prior Period

1.4%(Aug 2026)

↓ Declining

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Deep Analysis

A free cash flow yield of 1.3% means the company generates only $1.30 in free cash flow for every $100 of its market value — a low return for investors compared to what other stocks offer.

That level sits far below the sector median of 4.2%, placing WAT in the 19th percentile among peers, meaning roughly four out of five competitors have a higher yield. The trend data is incomplete: the year-over-year change is N/A, while the quarter-over-quarter change shows a decline of 7.1%, and only two historical values (1.3% and 1.4%) are available. The combination of a low yield and a recent quarterly drop points to weaker cash generation relative to valuation, which raises risk for income-focused investors. This metric does not support the overall NEUTRAL verdict — it leans negative because the yield is below the peer median and still falling quarter over quarter. It contradicts a neutral stance, suggesting the stock may be priced richly relative to its cash flow.

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: 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.