Pacer US Small Cap Cash Cows ETF (CALF) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Pacer US Small Cap Cash Cows ETF (CALF) Financial Services Profile

Pacer US Small Cap Cash Cows ETF (CALF) is a passively managed fund targeting U.S. small-cap companies with high free cash flow yield. By focusing on profitable, cash-generating businesses within the S&P SmallCap index, CALF offers investors exposure to potentially undervalued companies in the financial services sector.

What Is the Investment Thesis for CALF?

CALF presents an investment opportunity centered on the value factor within the small-cap universe. The fund's focus on free cash flow yield aims to capture potentially undervalued companies with strong financial health. With a market capitalization of $3.67B and a beta of 1.15, CALF provides exposure to a segment of the market that may offer higher growth potential compared to large-cap stocks, albeit with potentially higher volatility. The fund's success hinges on the continued outperformance of companies with high free cash flow yield and the ability of the small-cap segment to deliver capital appreciation. The absence of a dividend yield means that returns are solely dependent on price appreciation.

Based on FMP financials and quantitative analysis

CALF Key Highlights

Market Cap of $3.67B indicates a significant presence in the small-cap ETF market.

• Beta of 1.15 suggests CALF is slightly more volatile than the overall market.
• Focus on free cash flow yield provides exposure to potentially undervalued companies.
• Strategy-driven ETF offers a rules-based approach to small-cap investing.
• Absence of dividend yield means returns are solely dependent on capital appreciation.

Who Are CALF's Competitors?

CALF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CALF's Key Strengths?

Focus on free cash flow yield

• Rules-based methodology
• Transparent investment strategy
• Exposure to the small-cap market

What Are CALF's Weaknesses?

Absence of dividend yield

• Potential for higher volatility compared to large-cap stocks
• Dependence on the performance of value stocks
• Relatively high beta of 1.15

What Could Drive CALF Stock Higher?

Continued growth in the ETF market and increased adoption of factor-based investing.

• Potential outperformance of value stocks relative to growth stocks.
• Strategic partnerships to expand distribution and increase AUM.

What Are the Key Risks for CALF?

Market downturns and economic recessions could negatively impact fund performance.

• Increased competition in the ETF market could put pressure on management fees.
• Changes in investor sentiment towards value stocks could lead to outflows.
• Small-cap stocks can be more volatile than large-cap stocks, leading to greater price fluctuations.

What Are the Growth Opportunities for CALF?

• Increased Adoption of Factor-Based Investing: The growing popularity of factor-based investing, where strategies target specific investment characteristics like value or quality, presents a significant growth opportunity for CALF. As investors increasingly allocate capital to ETFs that screen for specific factors, CALF's focus on free cash flow yield positions it to attract a larger share of assets. The market for factor-based ETFs is projected to continue expanding, offering a favorable backdrop for CALF's growth. Timeline: Ongoing.
• Expansion of ETF Market: The overall ETF market continues to experience robust growth, driven by factors such as lower costs, greater transparency, and increased accessibility. As more investors, including institutional investors, allocate capital to ETFs, CALF stands to benefit from this trend. The increasing adoption of ETFs as core portfolio building blocks creates a larger pool of potential investors for CALF. Timeline: Ongoing.
• Outperformance of Value Strategies: If value stocks, particularly within the small-cap segment, begin to outperform growth stocks, CALF could experience increased inflows and improved performance. A shift in market sentiment towards value investing would make CALF's focus on free cash flow yield more attractive to investors seeking undervalued companies. Timeline: Dependent on market cycles.
• Strategic Partnerships and Distribution Agreements: Pacer Funds could pursue strategic partnerships with financial advisors, brokerage firms, or other institutions to expand the distribution of CALF. Increased visibility and accessibility through these partnerships could lead to higher inflows and greater market penetration. Timeline: 1-3 years.
• Development of Similar ETFs Targeting Different Market Segments: Building on the success of CALF, Pacer Funds could develop similar ETFs that apply the free cash flow yield strategy to other market segments, such as mid-cap or international equities. This would allow the company to leverage its expertise and brand recognition to capture additional market share in the ETF space. Timeline: 2-5 years.

What Are CALF's Competitive Advantages?

• Rules-based methodology provides transparency and predictability.
• Focus on free cash flow yield differentiates it from broad market small-cap ETFs.
• Established track record and brand recognition within the Pacer Funds ETF family.

What Does CALF Do?

Pacer US Small Cap Cash Cows ETF (CALF) is a strategy-driven exchange-traded fund (ETF) engineered to deliver capital appreciation over the long term. The fund's investment strategy revolves around identifying and investing in the top 200 small-cap companies within the S&P US SmallCap index that exhibit the highest free cash flow yield. This approach aims to capture companies that are not only profitable but also generate substantial cash, potentially indicating financial health and the ability to reinvest in growth or return capital to shareholders. The ETF was created to provide investors with a targeted exposure to the small-cap segment of the U.S. equity market, emphasizing companies with strong cash-generating capabilities. By focusing on free cash flow yield, CALF seeks to identify companies that may be undervalued relative to their cash-generating potential. The fund's composition is rebalanced periodically to ensure that it continues to hold the 200 small-cap companies with the highest free cash flow yield, adapting to changes in market conditions and company performance. CALF is available to investors seeking a rules-based, transparent approach to investing in small-cap companies with a focus on financial strength and value.

What Products and Services Does CALF Offer?

• Screens the S&P US SmallCap index for companies with high free cash flow yield.
• Invests in the top 200 small-cap companies based on free cash flow yield.
• Provides investors with exposure to potentially undervalued companies.
• Offers a rules-based, transparent approach to small-cap investing.
• Rebalances the portfolio periodically to maintain its focus on high free cash flow yield companies.
• Seeks to deliver capital appreciation over the long term.

How Does CALF Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• Attracts investors seeking exposure to small-cap companies with strong cash flow.
• Utilizes a passive investment strategy based on a rules-based methodology.

What Industry Does CALF Operate In?

The asset management industry is characterized by increasing competition and a shift towards passive investment strategies like ETFs. CALF operates within this landscape by offering a focused approach to small-cap investing based on free cash flow yield. The ETF market has experienced significant growth in recent years, driven by investors seeking low-cost, diversified investment options. CALF's success depends on its ability to attract investors seeking exposure to the small-cap segment with a value-oriented strategy. Competitors in the ETF space include a wide range of providers offering various strategies and asset class exposures.

Who Are CALF's Key Customers?

• Retail investors seeking diversified exposure to the small-cap market.
• Financial advisors looking for a value-oriented ETF for client portfolios.
• Institutional investors seeking to implement a factor-based investment strategy.

CALF Valuation & Market Position

With a $3.67B market cap, Pacer US Small Cap Cash Cows ETF sits in the mid-cap segment of the market. Relative to its peer group, CALF's quantitative score of 47/100 is roughly in line with the peer average of 46/100.

Return on equity for Pacer US Small Cap Cash Cows ETF stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. CALF trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

CALF Financials

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CALF Analyst Consensus

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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