Sentences with phrase «high free cash flow companies»

History shows that low price - to - earnings (P / E) and high free cash flow companies outperform over five and ten - year stretches.

Not exact matches

The company said it now expects a higher free cash flow burn at $ 1.5 billion in 2016 as producing original content consumes more cash up front.

«While the company faces a number of significant challenges, including the continued rise of Amazon and Google, its high margin and large sales figures enable the company to generate significant free cash flow, which it increasingly returns to shareholders via buybacks and dividends.»

The Company generated $ 2.6 billion of free cash flow in the first quarter of 2018 versus $ 2.2 billion in the first quarter of 2017 driven by higher net income.

High free cash flow typically suggests stronger company value.

Companies with strong free cash flow provide higher quality dividend yields because we know they have the cash flow to support the dividend.

The consumer discretionary sector has changed its stripes over the years and is now largely composed of mature companies with strong free - cash - flow yield and higher margins.

Companies with strong free cash flow provide higher quality dividend yields because we know the firm has the cash to support its dividend.

IBM has the highest payout ratio, as a percentage of trailing -12-month free cash flow, among these six companies.

There are big sectors of the market — food companies, for example — where companies believed to be of high - quality, with low single - digit growth, are trading at 20 - 25x free cash flow.

Although the company tends to have relatively high capital expenditures, which affect free cash flow, it's been able to take on debt in order to help fund its dividend.

These companies, with strong free cash flow and economic earnings, provide higher quality and safer dividend yields because we know they have the cash to support their dividend.

They focus on identifying good companies characterized by accelerating revenue and earnings growth, high recurring revenues, strong balance sheets and free cash flow generation.

Outlook For the full year 2012, the company is increasing its adjusted free cash flow guidance to reflect the favorable terms of the notes receivable securitization, the impact of lower financing propensity which results in a higher percentage of cash sales as compared to financed sales of vacation ownership products, as well as reduced real estate inventory needs.

Cash flow is riding high at ON, and the corresponding price - to - free cash flow ratio (same basic principle as the price - to - earnings ratio) makes the company look like a bargCash flow is riding high at ON, and the corresponding price - to - free cash flow ratio (same basic principle as the price - to - earnings ratio) makes the company look like a bargcash flow ratio (same basic principle as the price - to - earnings ratio) makes the company look like a bargain.

They focus on identifying good companies characterized by accelerating revenue and earnings growth, high recurring revenues, strong balance sheets and free cash flow generation.

At a high - level, I see QCOM as a conservatively capitalized (Debt / Equity = 36 %), free cash flow generating (FCF = ~ $ 5B 12 - months YTD), financially stable company (A + / Stable, A1 / Stable), who recently grew their dividend by over 10 %.

The main investment thesis here is you have a company that produces high returns on capital with a long history of stable free cash flow that trades at around 8 times FCF.

I like companies where market size is huge enough to maintain the high growth rate with free cash flow generation while keeping light balance sheet.

I also like companies that are buying back their shares, making my shares more valuable (high free cash flow often leads to share buybacks).

Some young high growth companies with less than 7 years of positive free cash flows might not be included in the data analyzed, but those are the types of companies that must be analyzed more carefully due to greater difficulty in predicting their future cash flows.

The companies that actually do buybacks, as opposed to merely announcing them, do very well, and that is intensified for those that buy back stock at high free cash flow yields.

As well, look at free cash flow, how much debt a company is carrying — a debt - to - EBITDA ratio of three times is getting high, says Gibbs — and how they're spending their money.

That's why a lot of us tend to invest in companies like PG, JNJ, KMI, PM, MO, T etc because those companies have pretty wide moats / competitive advantages, long histories of dividend raises, shareholder support and solid revenue, cost controls = > positive net income and generally healthy operating cash flow, sometimes high amounts of free cash flow after capital investment.

Stephen Goddard: We focus on a universe of high return on capital companies with underleveraged balance sheets, ample free cash flow.

When looking for a high - quality company, Mr. Fox wants a business with strong financials, manageable debt, high returns on capital and good free cash flow.

Even with little to no future growth, these companies should continue to produce high levels of free cash flow over time which will allow them to increase share buybacks and / or dividends, thus compounding value for shareholders over time.

Leaving aside the biases that most of us have one way or another for each of these companies, and you'll see 4 extremely profitable, high quality businesses with very low multiples of earnings and free cash flow.

The main company will be relatively clean, with free cash flow being a high percentage of earnings.

So my watchlists end up providing me with most of my ideas, and I actually maintain a number of google spreadsheets, including lists such as buybacks, high ROIC companies, consistent historical free cash flow, and book value compounders among other things.

Most of them are capital light businesses with high margins, high returns, and remember — they all belong to the exclusive club of companies that have produced 10 consecutive years of free cash flow:

The crux of the idea is that it is a company with a strong brand name and large market share that produces high ROIC and stable free cash flow and has a majority owner committed to returning that cash flow to shareholders, all for a single digit multiple.

If the return on equity is higher than the growth rate, the company is probably generating free cash flow.

Plus the company's high interest bill adds additional stress — net interest (inc. hybrid coupons) now stands at a whopping 37 % of operating free cash flow.

Companies that have high return on capital and don't have a very capital intensive business — our kind of companies — usually will have substantial free cash flows, which allows them to grow earnings organically, pay a dividend and buy baCompanies that have high return on capital and don't have a very capital intensive business — our kind of companies — usually will have substantial free cash flows, which allows them to grow earnings organically, pay a dividend and buy bacompanies — usually will have substantial free cash flows, which allows them to grow earnings organically, pay a dividend and buy back stock.

«We believe this positions the company to generate strong free cash flow and higher absolute revenue and EBITDA levels in the future.»