Sentences with phrase «high free cash flow producing»

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.

But to answer your question — very generally speaking — my ideal investment is a great operating business that produces consistent free cash flow and high returns on capital that for some reason trades at 10x earnings or so.

Just keep it simple, look for obvious situations that you can understand, and try to find businesses that will grow intrinsic value over time that produce stable free cash flow and high returns on capital that are available at cheap prices.

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.

AAPL is the glaring exception, but notice how the other three's stock prices have gone basically nowhere in the last 10 years while their businesses have steadily improved year after year, producing more sales, more free cash flow, high book values, buying back shares, and implementing and growing dividend payouts.

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.

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.

We exploit this weakness by focusing on quality: businesses that generate high and consistent ROIC / ROE, are run by skilled capital allocators, and produce enough free cash flow to self - fund growth without excessive leverage or dilution.