When it was rated [F], VZ had a one and three
year free cash flow growth that was negative.
Not exact matches
The fundamentals of
year - to - date return leaders technology and consumer discretionary continued to impress during Q1, but materials showed the most strength, boosted by solid EPS and EBITDA
growth and
free -
cash -
flow margin.
For example, the above mentioned NFLX — which is a great company with great subscriber
growth rates — reported
free cash flows of a negative $ 2 billion last
year and plans to burn through $ 3 to $ 4 billion in the current
year.
Good or OK categories include current ROE and its trend, the projected EPS
growth rate of 8 % per
year, and the company's
free cash flow situation.
If 85 percent of that is
free cash flow, and float grows, say $ 5 billion a
year, the float
growth would add almost 30 percent to the annual
free cash flow.
Despite some one - time issues with the company's procurement costs last quarter, this company has delivered excellent profit
growth and consistent
free cash flow for its shareholders over the past several
years.
In fact, over the next three
years,
free cash flow is projected to grow at an impressive 9.5 % compound annual
growth rate...
The stock also has an attractive dividend yield of 3.6 %, a 10 % historical dividend
growth rate, a reasonable earnings multiple (14x), and meaningful
free cash flow growth potential over the next five
years.
Because we believe it is a superior business with skilled management, our appraisal increases at 12 % per
year through
cash earnings
growth and
free cash flow reinvestment.
The linear trend model assumes
growth occurs at an absolute level each, such as a $ 10 million increase in
free cash flows each
year.
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.
Good or OK categories include current ROE and its trend, the projected EPS
growth rate of 8 % per
year, and the company's
free cash flow situation.
Supposing a 4 %
free cash flow yield and a 5 %
growth rate in earnings, the company offers long - term rewards of 9 % per
year to shareholders.
However, MSFT's prodigious
free cash flow generation puts them in a fortunate position where they can shift and adapt as they see fit, which gives them additional flexibility and potential
growth opportunities on top of organic
growth and any developments their internal research & development can provide (they spent $ 11.4 billion on R&D last fiscal
year).
The company reported full -
year revenue
growth of just 3 %, net debt plus pension deficit plus trade payables (net of receivables) totaling GBP 560 Million, and produced just GBP 31.6 M of
free cash flow (vs. a prior GBP 42.0 M)-- and GNC still manages to sport a GBP 941 M market cap & an estimated P / E of 15.2!?
Well, I did stress I hadn't cherry - picked data, and that shifting dates by a
year or two shouldn't mean any drastic change in ratios &
growth rates... obviously
cash flows are volatile, but broadly speaking this applied to
free cash flow also.
While the company's
free cash flow will remain restricted the next few
years to fund its $ 37 billion of
growth investments over 2017 - 2021, forcing it to lean even more on debt and equity markets, Duke Energy still appears to be a very healthy business.