← fcf_ni_divergence (all sectors) · all signals in Mining + Construction
fcf_ni_divergence in Mining + Construction
Fires when free cash flow diverges substantially from net income — either NI >> FCF (low-quality earnings) or FCF >> NI (under-reported earnings).
Calibration in this sector (20d horizon)
| n events | 122 |
|---|---|
| Mean return | +1.50% |
| Median | -1.19% |
| Stdev | 21.96% |
| Hit rate | 47.5% |
| r/σ | +0.07 |
Top 5 sectors for fcf_ni_divergence by |r/σ|
| Sector | n | Mean 20d | r/σ |
|---|---|---|---|
| Manufacturing (light) | 173 | -2.42% | -0.17 |
| Services (health + legal + edu) | 31 | -2.70% | -0.14 |
| Wholesale + Retail Trade | 128 | +5.92% | +0.12 |
| Finance, Insurance, Real Estate | 169 | -1.53% | -0.12 |
| Mining + Construction | 122 | +1.50% | +0.07 |
For full multi-horizon and net-of-cost calibration, see the unfiltered fcf_ni_divergence methodology page.