I ran 15 years of SEC filings through a Python script to calculate "True Free Cash Flow" for 1,400 stocks. Here are the SaaS anomalies I found.

We’ve all heard the narrative: the "SaaS-pocalypse" is here, and AI agents are going to destroy software seat usage. I hold the conflicting belief that the market usually knows more than I do, but I wanted to see the physical reality. I got tired of Wall Street's "Adjusted EBITDA" nonsense, so I wrote a Python script to ingest 15 years of SEC filings for 1,400 stocks. I calculated **True Free Cash Flow** (Operating Cash Flow minus CapEx minus Stock-Based Compensation) to see who is actually printing physical cash, and whose moat is eroding. I cross-referenced True FCF Yield against 5-year FCF compounding and margin expansion. Here are the three most violent macroeconomic divergences in the market right now: **1. The Screaming Buy: Workday ($WDAY)** The stock is down -50% over the last year. Wall Street thinks the HR software cycle is dead. But the math says they are yielding 7%, and they compounded Free Cash Flow at 40% a year for the last 5 years. The physical moat is completely intact, and you are getting it for half price. **2. The Value Trap: Gen Digital ($GEN)** It screens at the very top of my list with a mouth-watering 18% FCF yield. But the script flagged a terminal decline: their 5-year margin CAGR is -24% and top-line revenue is shrinking. The yield is high because the market correctly assumes it's a melting ice cube losing to CrowdStrike and MSFT Defender. **3. The "AI Context" Play: FactSet ($FDS)** FactSet has been punished by the market (down -46%), pushing its True FCF yield to 7%. But as someone who works in data science, I can tell you LLMs are useless without structured context. FactSet owns the proprietary context of the stock market. It has rock-solid top-line growth (\~9%), and Wall Street is throwing it away. **The Takeaway:** The market is right that some SaaS is dying, but it's throwing out the compounding monopolies with the bathwater. *Note: I couldn't format the massive 10-year data tables and the full list of 30 stocks on Reddit, so I put the raw data, the charts, and the $CRM breakdown on my Substack here if anyone wants to check my math:* [https://cavemanscreener.substack.com/p/saas-value-traps-and-ai-context-by](https://cavemanscreener.substack.com/p/saas-value-traps-and-ai-context-by)