Sector Report5 min read
Technology: 22 A-Grades, Half Are Declining
Tech has the best grades and the worst trends. Twenty-two A-grades can't hide what's happening underneath.
Aug 21, 2026
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Free cash flow analysis, sector reports, and market insights
Tech has the best grades and the worst trends. Twenty-two A-grades can't hide what's happening underneath.
Most REITs print cash at absurd margins. Equinix burns it faster than tech companies.
Tobacco prints 45% margins while Walmart barely clears 2%. Nine A-grades, but only tobacco and Monster look built to last.
The energy sector prints A-grades but can't sustain momentum. Nine companies earn top marks while twelve show deteriorating cash flow trends.
Payments and exchanges print money. The biggest banks still burn it. Six F-grades are all improving, but from deeply negative baselines.
Only one C-grade in the entire sector. Median FCF margin negative. Average debt load 583x free cash flow.
Four A-grades at 20%+ margins. Nine F-grades burning through cash. This sector splits cleanly between digital platforms and everyone else.
Pharma and devices print cash at 20%+ margins. Health insurers struggle to break 3%. The sector split is getting wider.
Two-thirds of industrials earn A-grades. The other third is burning cash or barely staying afloat.
Tech sector looks healthy on the surface. Dig into the trend data and half the A-grades are going the wrong direction.
Same sector, same grades, same problem at the bottom. But the improving trends tell a different story.
Tobacco and beverages print cash. Big retail burns it. The sector splits cleanly between generators and destroyers.