AITSE:4388 +0.55%78 FCF Yield % is 2.24 as of Jul. 01, 2026, which is 9% above its 10-year median of 2.05. GuruFocus rates TSE:4388 with a GF Score™ of 78/100 and a GF Value™ of 円1,079.60 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,497 Hardware companies, AI ranks better than 66.2% 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, AI's Trailing 12-Month Free Cash Flow is 円50 Mil, and Market Cap is 円2,233 Mil. Therefore, AI's FCF Yield % for today is 2.24%.
The historical rank and industry rank for AI's FCF Yield % or its related term are showing as below:
TSE:4388'
s FCF Yield % Range Over the Past 10 Years
Min: 0.18 Med: 2.05 Max: 6.94
Current: 2.24
During the past 11 years, the highest FCF Yield % of AI was 6.94%. The lowest was 0.18%. And the median was 2.05%.
TSE:4388's FCF Yield % is ranked better than 66.2% of 2497
companies
in the Hardware industry
Industry Median: 0.17
vs TSE:4388: 2.24
AI's FCF Margin % for the quarter that ended in Mar. 2026 was 6.53%.
AI 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.
AI FCF Yield % Related Terms
AI FCF Yield % Historical Data
* Premium members only.
The historical data trend for AI'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.
TSE:4388 vs CSCO, CIEN, MSI: FCF Yield % Comparison
For the Communication Equipment subindustry, AI'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.
AI FCF Yield % vs Hardware Industry
For the Hardware industry and Technology sector, AI's FCF Yield % distribution charts can be found below:
* The bar in red indicates where AI'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.
AI (TSE:4388) has a FCF Yield % of 2.24 as of Jul. 01, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on AI and its competitors. This is near median its historical median of 2.05. Over the past decade, AI's FCF Yield % has ranged from 0.18 to 6.94. According to the industry distribution chart, AI ranks #844 out of 2497 companies in the Hardware industry, placing it in the top 33.8%.
Is AI's FCF Yield % too high?
AI's current FCF Yield % of 2.24 is near median its 10-year median of 2.05. Over the past 10 years, this metric has ranged from a low of 0.18 to a high of 6.94. The Hardware industry median FCF Yield % is 0.17. AI's value of 2.24 is 1217.6% above this industry median. Based on the distribution chart, AI ranks #844 out of 2497 companies in the Hardware industry, which is above the industry midpoint. Overall, AI has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AI's FCF Yield % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AI ranks #844 out of 2497 companies for FCF Yield %. This puts AI in the upper half of its industry. The industry median FCF Yield % is 0.17. AI's value of 2.24 is 1217.6% above this benchmark. Historically, AI's own FCF Yield % has ranged from 0.18 to 6.94 over the past decade. While the company's 10-year median is 2.05 vs. the industry median of 0.17, AI has consistently been above the industry average. 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 Hardware company?
The median FCF Yield % among Hardware companies is 0.17, based on 2,497 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AI's current FCF Yield % of 2.24 is 1217.6% above the industry median. 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 AI and its competitors. For the Hardware industry, the median FCF Yield % is 0.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AI's current FCF Yield % is 2.24, which is near median its own 10-year median of 2.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AI stock overvalued right now?
Based on GuruFocus' analysis, AI (TSE:4388) is currently considered Significantly Undervalued. The stock's GF Value™ is 円1,079.60, compared to a current price of 円366.00 — trading 66.1% below its estimated fair value. The current FCF Yield % is 2.24, which is near median its 10-year median of 2.05 and 1217.6% above the Hardware industry median of 0.17. AI's overall GF Score™ is 78/100 with 5 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 AI (TSE:4388), the current FCF Yield % is 2.24 as of Jul. 01, 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 AI (TSE:4388) Overvalued in 2026?
Based on GuruFocus' analysis, AI stock appears to be undervalued.
The current stock price of 円366.00 is trading 66.1% below its estimated GF Value™ of 円1,079.60.
GuruFocus considers AI to be Significantly Undervalued.
Key valuation signals for TSE:4388:
FCF Yield %: 2.24 (near median its 10-year median of 2.05)
GF Value™: 円1,079.60 vs. price of 円366.00 (66.1% below fair value)
Industry Position: 1217.6% above the Hardware median (#844 of 2497)
No single metric tells the full story. See the TSE:4388 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AI Inc provides and develops voice synthesis systems and consults related business services in Japan. The company provides a high-quality speech synthesis engine capable of freely synthesizing speech with more human-like natural speech, employing a corpus-based speech synthesis method that combines human voice rather than conventional machine sound. The company's product includes AlTalk, AlTalk SDK, AlTalk Server, and AlTalk Custom Voice.
78GF Score
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