Sector Report4 min read
Consumer Discretionary: Three A-grades, Eight Failures
Eight F-grades tell the story: this sector is bleeding cash. Travel platforms prove there's an exception to every rule.
Apr 27, 2026
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Free cash flow analysis, sector reports, and market insights
Eight F-grades tell the story: this sector is bleeding cash. Travel platforms prove there's an exception to every rule.
Healthcare has the highest A-grade count of any sector, but health insurance is broken at the free cash flow level.
Two-thirds of industrials earn A-grades while Boeing, FedEx, and 3M bleed cash. The sector split tells you everything.
Tech sector shows strongest fundamentals across all sectors. Three names burning cash while everyone else prints it.
The utilities sector is broken. Nineteen F-grades, a -9.7% median margin, and 582x average debt-to-FCF ratio tell the full story.
The REIT sector prints 47% median margins with 11 A-grades. Then there's Equinix at -4.3% and declining.
Half the sector prints double-digit FCF margins. The other half can't cover its debt.
Payments and exchanges print cash. Big banks bleed it. The split is getting worse.
Philip Morris and Monster print 26% and 22% margins. Walmart and Tyson barely break 2%. Same sector, different planets.
Travel and fast food print 30%+ FCF margins. Auto and retail burn cash. Same sector, different planets.
Pharma prints cash at 25%+ margins. Health insurers are burning through it at 2%. Same sector, different planets.
Half the sector earns A-grades while Boeing burns cash. The spread tells you everything about where quality lives.