Free cash flow analysis, sector reports, and market insights
The industrials sector looks healthy on the surface — 12 A-grades, 62% of companies improving — but the 6.5x average debt-to-FCF ratio tells a different story. When airlines and legacy manufacturers burn through cash, the sector's balance sheet fragility shows.
The materials sector splits cleanly in half: six companies generating real cash, six burning through it. CF's 29.5% margin sits 1,800 basis points above the sector median.
MSFT converts 25% of revenue into free cash flow. The A-grade isn't generous. It's arithmetic.
Most REITs are cash machines. Then there's Equinix, grinding out a 2.1% margin while the sector median sits at 42.1%.
The technology sector is printing cash at a 24.2% median margin — more than double most industries — with 80% of companies earning A-grades. But the gap between winners and losers has never been wider.
Every single utility we analyzed earned an F. The median FCF margin is negative. This isn't a sector, it's a capital incinerator.