Free cash flow margin is free cash flow — operating cash flow minus capital expenditure — as a percentage of revenue. Unlike accounting profit, it reflects real cash left over after the company funds its own reinvestment. Fisclear tracks this as a sector median, refreshed monthly, rather than as a per-stock figure.
The formula
Free Cash FlowRevenue
= FCF Margin
Why it matters
- —Cash, not accounting profit, pays dividends, buys back stock, and pays down debt — FCF margin tracks the real fuel for those.
- —A company can show strong net margin but weak FCF margin if profit is tied up in working capital or heavy capex.
- —Best compared against the sector median, since capital intensity (and therefore typical FCF margin) varies enormously by industry.
How to read it
| < 5% | Capital-intensive, or reinvesting heavily |
| 5%–15% | Healthy cash generation |
| > 20% | Highly cash-generative, asset-light model |
Free Cash Flow Margin by sector
Live · sector medians| Sector | Median FCF Margin |
|---|---|
| Real Estate | 22.0% |
| Technology | 19.5% |
| Communication Services | 16.0% |
| Healthcare | 13.5% |
| Energy | 11.5% |
| Unknown | 11.0% |
| Consumer Staples | 9.5% |
| Financials | 9.0% |
| Materials | 9.0% |
| Industrials | 8.5% |
| Consumer Discretionary | 8.2% |
| Utilities | 6.0% |
Free Cash Flow Margin isn't stored per-stock in our data — only as a sector median, refreshed monthly. Browse companies by sector for the individual context.