Zip CoASX:ZIP +3.51%62 FCF Yield % is -0.71 as of Jun. 30, 2026. GuruFocus rates ASX:ZIP with a GF Score™ of 62/100 and a GF Value™ of A$2.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 540 Credit Services companies, Zip Co ranks worse than 51.11% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
As of today, Zip Co's Trailing 12-Month Free Cash Flow is A$-28 Mil, and Market Cap is A$4,063 Mil. Therefore, Zip Co's FCF Yield % for today is -0.71%.
The historical rank and industry rank for Zip Co's FCF Yield % or its related term are showing as below:
ASX:ZIP'
s FCF Yield % Range Over the Past 10 Years
Min: -294.83 Med: -1.53 Max: 20.08
Current: -0.71
During the past 13 years, the highest FCF Yield % of Zip Co was 20.08%. The lowest was -294.83%. And the median was -1.53%.
ASX:ZIP's FCF Yield % is ranked worse than 51.11% of 540
companies
in the Credit Services industry
Industry Median: -0.395
vs ASX:ZIP: -0.71
Zip Co's FCF Margin % for the quarter that ended in Dec. 2025 was 19.23%.
Zip Co FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Zip Co FCF Yield % Related Terms
Zip Co FCF Yield % Historical Data
* Premium members only.
The historical data trend for Zip Co's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Zip Co's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zip Co FCF Yield % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Zip Co's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zip Co (ASX:ZIP) has a FCF Yield % of -0.71 as of Jun. 30, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Zip Co and its competitors. According to the industry distribution chart, Zip Co ranks #276 out of 540 companies in the Credit Services industry, placing it in the top 51.1%.
Is Zip Co's FCF Yield % too high?
Zip Co's current FCF Yield % is -0.71. Based on the distribution chart, Zip Co ranks #276 out of 540 companies in the Credit Services industry, which is below the industry midpoint. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's FCF Yield % compare to V and MA?
According to the Credit Services industry distribution chart, Zip Co ranks #276 out of 540 companies for FCF Yield %. This places Zip Co in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for a Credit Services company?
A good FCF Yield % depends on the Credit Services industry context. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Zip Co and its competitors. Zip Co's current FCF Yield % is -0.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.07, compared to a current price of A$3.24 — trading 56.5% above its estimated fair value. The current FCF Yield % is -0.71. Zip Co's overall GF Score™ is 62/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Zip Co (ASX:ZIP), the current FCF Yield % is -0.71 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zip Co (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$3.24 is trading 56.5% above its estimated GF Value™ of A$2.07.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
FCF Yield %: -0.71
GF Value™: A$2.07 vs. price of A$3.24 (56.5% above fair value)
No single metric tells the full story. See the ASX:ZIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
62GF Score
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