Had Jerry Maguire been an investor instead of a fictional
sports agent, he might have become famous for yelling, "Show
me the cash flow!"
Earnings come and go, and the green-eyeshade types can
legally manipulate them to mask a company's true operations.
Yet its ability to generate cash-- what comes in the
register and goes out the door -- remains the preeminent
indicator of company's worth. In short, cash is king.
Below, we'll look at companies that have proven themselves
prodigious generators of
free cash flow(FCF) -- the amount of money a company has
left over that it could potentially pay to its investors.
We'll find companies that have generated compounded free cash
flow growth rates exceeding 25% annually over the past five
years, then pair them with the opinions of the more than
140,000 members of the
Motley Fool CAPSinvestor intelligence community, to see
which ones might have the best chance of outperforming the
market.
Company
Levered FCF 5-Year CAGR, %
CAPS Rating (out of 5)
First Industrial Realty Trust (NYSE:
FR)
92.4%
***
Garmin (Nasdaq: GRMN)
76.6%
***
Oshkosh (NYSE: OSK)
85.5%
**
Transocean (NYSE: RIG)
121.5%
*****
Walgreen (NYSE: WAG)
29.7%
**** Continued... |